Novo Resources’ main asset is Beatons Creek Paleoplacer gold project, which is located about 200 kilometers north of Newman. What makes this such an exciting project?

When Novo Resources first arrived in Australia, we started our exploration activities at a very conceptual level. We basically built this project from nothing more than a vision to our current resource of 300,000 ounces indicated and 260,000 ounces inferred. Now, we are moving towards developing a modest scale gold mine with the intent of beginning construction in 2018. The deposit could be much larger than anticipated. We have only tested a fairly restricted near-surface area, but the conglomerates are open into the vast basin adjacent to the resource. While the resource may seem small at this stage, we expect over time it will grow considerably.

How has Novo Resources been funding its exploration projects, and what has been the key to the company’s success in terms of navigating the cyclical nature of the mining cycle?

Novo Resources began life in late 2010 around the peak of the gold market. We managed to raise around $9 million at the beginning, which helped us get through the early part of the downturn.  Then, we experienced some critical events that took place along the way that assisted with our success. Newmont invested in the company in September 2013 to become our largest shareholder and currently hold just under 20%. Through that share purchase, warrants were exercised which brought in more capital that allowed us to continue work through late 2015. We had a couple of modest equity financings in 2015 and 2016.  Most importantly, we have recently completed an equity financing that will catapult us through a resource expansion and pre-feasibility study.

What advancements in technology have benefited Novo Resources’ operations?

Novo employs several form of modern technology.  We recently started using drones to conduct surface surveys. What used to represent an expenditure of over $40,000 in aircraft fees can now be accomplished in a much more affordable manner. Drones photograph and stitch together a great mosaic photograph of the area and produce a detailed surface model. When we begin mining, we foresee utilizing high tech equipment such as GPS devices to track mining activities.

Novo Resources is listed on the TSX and its head office is based in Vancouver. What are the challenges of headquartering in Canada but operating a project in Australia?

Novo Resources has developed a strong shareholder and support base in North America in spite of operating in Australia. Canadians are miners through and though and are great people to work with. In Australia, we look to build a network of investors because the mining community is solid here as well. Australian companies are valued much higher than their Canadian counterparts and since 2014, Australia has had a gold boom unlike anything seen in a long time. From a cash flow basis, valuations for Australian gold producers have recently been significantly higher than Canadians. Australians love their gold companies. Canadian stocks may soon see similar valuations as their dollar depreciates.

How does Novo Resources intend to optimize the cash flow generated by the project?

In three years, we hope Beatons Creek will be an operating mine generating A$50 million a year. It is potentially a very lucrative deposit. At that point, Novo intends to advance our other projects in the region to form the basis for a new gold camp in northwestern Australia. We have excellent ground holdings, so Novo Resources plans to use the cash flow to further explore Beatons Creek and similar high quality targets. As an example, we hold a property nearby called Blue Spec, a very high grade vein system. At Marble Bar, 100 kms north, we have gold-bearing conglomerates comparable to those at Beatons Creek.  Recently, we acquired a new conglomerate system called Comet Well.  We intend to use cash flow to advance a big picture strategy.