Novo Resources Corp. Investor Presentation

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Novo Resources Corp. Investor Presentation

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Novo Resources Corp. Investor Presentation

  1. 1. This document is for information purposes only and is not an offer to sell, nor a solicitation of an offer to purchase, any securities. It does not purport to contain all of the information that a prospective investor may require and it is not intended to provide any legal, tax or investment advice. March 2017 High Grade Open Pit Gold in Australia Corporate Presentation TSX-V: NVO / OTCQ: NRSPF
  2. 2. TSX-V : NVO|OTCQX: NSRPF Some statements in this presentation contain forward-looking information (within the meaning of Canadian securities legislation), including without limitation statements as to the potential, through further drilling, to expand and upgrade to the indicated category the inferred resources described in this presentation, and that a preliminary economic assessment will be undertaken later this year. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, the ability to complete the drilling programs and other exploration activities as currently contemplated, the receipt of successful results as drilling proceeds, customary risks of the mineral resources exploration industry as well as Novo Resources Corp. (“Novo” or the “Company”) having sufficient cash to fund the planned drilling and other activities, as well as other risks and factors mentioned in the continuous disclosure filings of Novo which can be found under its profile on the SEDAR website (www.sedar.com). Shareholders and prospective investors are therefore cautioned not to place undue reliance on forward-looking information. Novo undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Dr. Quinton Hennigh, the Company’s Chief Executive Officer, President and Director and a Qualified Person as defined by National Instrument 43-101, has approved the technical contents of this presentation. This presentation uses the term "inferred resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, it is not recognized by the U.S. Securities and Exchange Commission. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable. 2
  3. 3. TSX-V : NVO|OTCQX: NSRPF 3 TSX-V : NVO|OTCQX: NSRPF 3 High-Grade Open Pit Gold Project • Beatons Creek Open Pit Gold Project • M&I resource of 299k oz at 2.7 g/t gold • Inferred resource of 259k oz at 2.7 g/t gold • Most within 30 meters of surface and open at depth • Assessing a 2,000 tonne per day operation utilizing a gravity + carbon-in-leach mill 2017 Plan • Drill 3,000 meters (65% step out, 35% infill); trench sampling • Update resource in 3-4 months • Economic Study in 4-6 months • Plant procurement Q4/2017; construction Q1/2018 Bulk Sample • 30,000 tonne bulk sample taken in 2016 • Positive grade reconciliation (significantly better than resource model) • No folding or faulting; flat-lying conglomerate • Visual marker below mineralized conglomerate – minimize dilution Operating Mill Nearby • Millennium Minerals Ltd. operating within 9 km of NVO deposit • Plant Capacity 5,400 tpd High-Grade U/G Target • Blue Spec Underground Gold Project • 16,000 meters of drilling in 2016 • JORC 2012 resource: 106koz @ 24.85 g/t Indicated; 113koz @ 13.95 g/t Inferred
  4. 4. TSX-V : NVO|OTCQX: NSRPF 4 TSX-V : NVO|OTCQX: NSRPF 4 Shares Outstanding (Basic) • 93.8 M Market Cap (Basic) • C$74.1 M (based on March 10, 2017 closing price of C$0.79) Options Outstanding • 4.2 M (avg. exercise price of C$0.87) Warrants Outstanding • 13.5 M (avg. exercise price of C$1.03)1 Shares Outstanding (Fully Diluted) • 111.6 M Balance Sheet • ~C$2 M cash, no debt (1) Includes 3.0 M warrants exercisable at C$0.80 until July 2017, 3.9 M warrants exercisable at C$0.85 until March 2018 and 6.6 M warrants exercisable at C$1.25 until July / August 2018 Public Float, 57% Creasy Group, 12% Newmont, 19% Management & Insiders, 12% Ownership
  5. 5. TSX-V : NVO|OTCQX: NSRPF 55 Dr. Quinton Hennigh (President, CEO & Director) • Economic geologist with more than 20 years of exploration experience with major gold mining firms including Homestake Mining, Newcrest Mining and Newmont Mining • Currently director and technical advisor to Irving Resources Inc, Precipitate Gold Corp, TriStar Gold Inc., and NV Gold Corp. • Ph.D. in Geology/Geochemistry from the Colorado School of Mines Herrick Lau, MA, CFA (CFO & Director) • Over 15 years of experience in corporate finance and public company management • Managing Director of Baron Group Canada • Former VP, Corporate Finance in Global Maxfin Capital Inc. and Graydon Elliott Capital Corp. Leo Karabelas (VP of Corporate Communication) • Over 10 years of experience in the capital markets and investor relations industry • President of Focus Communications Investor Relations Inc. Luca Bechis, MBA (Director) • Former partner of Egerton Capital, a major UK hedge fund • In 2004, he founded Richmond Partners Ltd. to which he remains an advisor and largest investor Akiko Levinson (Director) • Brings over 20 years of experience to the market, has extensive experience in mining finance and end-to-end rare earth mineral investment • President & CEO and Director of Irving Resources Inc. and former President of Gold Canyon Resources Inc.
  6. 6. TSX-V : NVO|OTCQX: NSRPF CNSX: NVO|OTCQX: NSRPFTSX-V : NVO|OTCQX: NSRPF Gold in the Pilbara • Novo Resources has assembled a formidable land position in the Nullagine gold camp covering two robust gold systems: conglomerate hosted-Au at Beatons Creek and bonanza grade orogenic Au along the Blue Spec shear zone 6
  7. 7. TSX-V : NVO|OTCQX: NSRPF CNSX: NVO|OTCQX: NSRPFTSX-V : NVO|OTCQX: NSRPF 7 A Unique Style of Deposit • Gold-bearing conglomerate horizons occurring near surface are thoroughly oxidized • Transition to fresh rock at around 20 m. Fresh rock is free-milling
  8. 8. TSX-V : NVO|OTCQX: NSRPF 8 TSX-V : NVO|OTCQX: NSRPF Exposure in trench Grade = 6.1 gpt Au Fresh pyrite clasts Oxidized pyrite clasts Gold in Conglomerates
  9. 9. TSX-V : NVO|OTCQX: NSRPF 9 Nuggety Gold • Extensive test work conducted on Beatons Creek conglomerates indicates high gravity recoveries • Cyanidation recovers most of the rest
  10. 10. TSX-V : NVO|OTCQX: NSRPF 10 2014-15 Shallow RC Drilling and Trenching Program • Novo targeted shallow, oxidized gold-bearing conglomerate horizons in an area covering about four sq km • Drilling and trenching carried out in late 2014 through mid 2015 was designed to gather sufficient data to define a sizeable resource (target 3-4 Mt) that could be developed into a ~1,500 tpd, low-cost mining operation
  11. 11. TSX-V : NVO|OTCQX: NSRPF 11 Looking down and northwest Oxide Reef Model
  12. 12. TSX-V : NVO|OTCQX: NSRPF 12 Beatons Creek New Resource (Sept. 15, 2015) Classification Cut Off Grade (g/t) Tonnes (000) Grade (g/t) Resouce (oz) Measured 0.5 515 3.1 51 Indicated 0.5 2,822 2.7 241 Measured & Indicated 0.5 3,337 2.7 292 Inferred 0.5 2,668 2.4 203 Classification Cut Off Grade (g/t) Tonnes (000) Grade (g/t) Resouce (oz) Measured 2.0 - - - Indicated 2.0 55 4.2 7 Measured & Indicated 2.0 55 4.2 7 Inferred 2.0 369 4.7 56 Classification Cut Off Grade (g/t) Tonnes (000) Grade (g/t) Resouce (oz) Measured 0.5 / 2.0 515 3.1 51 Indicated 0.5 / 2.0 2,877 2.7 249 Measured & Indicated 0.5 / 2.0 3,392 2.7 299 Inferred 0.5 / 2.0 3,037 2.7 259 Near Surface Mineral Resources Underground Mineral Resources Global Mineral Resources Please refer to the news release issued on September 16, 2015 for further disclosure
  13. 13. TSX-V : NVO|OTCQX: NSRPF 13 Selective Mining Concept • Oxidized material is soft and should not require drilling and blasting • Using precise surveying and visual control, it should be possible to strip overburden off the top of the reef to within 10-20 cm of its top • The reef itself can be selectively mined
  14. 14. TSX-V : NVO|OTCQX: NSRPF 14 30,000 Tonne Bulk Sample • Demonstrated no drilling and blasting is required. All near-surface material can easily excavated with heavy equipment
  15. 15. TSX-V : NVO|OTCQX: NSRPF 15 30,000 Tonne Bulk Sample • Demonstrated continuity and consistency of gold-bearing reefs. Beds are sheet-like and are not disrupted by folding or faulting
  16. 16. TSX-V : NVO|OTCQX: NSRPF 16 30,000 Tonne Bulk Sample • Upper and lower contacts of gold-bearing reefs can be readily be identified while mining resulting in minimal dilution
  17. 17. TSX-V : NVO|OTCQX: NSRPF 17 30,000 Tonne Bulk Sample • Bench sample grades range from 0.62 to 11.54 g/t Au and average 2.78 g/t Au. The resource block model of this area estimated grades ranging from about 0.5 to just under 5.0 g/t Au and averaging 1.65 g/t Au • Of 33 bench samples, four report grades lower than nearby resource blocks whereas 29 report grades similar or better than nearby resource blocks
  18. 18. TSX-V : NVO|OTCQX: NSRPF 18 Trial Processing • Main goal – to confirm grade
  19. 19. TSX-V : NVO|OTCQX: NSRPF 19 Trial Processing Results
  20. 20. TSX-V : NVO|OTCQX: NSRPF 20 Trial Processing Results
  21. 21. TSX-V : NVO|OTCQX: NSRPF 21 Undiluted predicted grade = 1.65 gpt Au Trial Processing Results
  22. 22. TSX-V : NVO|OTCQX: NSRPF 22 Potential of Beatons Creek • Novo views developing shallow oxide gold mineralization as key to unlocking the potential of this gold district in a staged approach • Should positive cash flow be achieved, further exploration will target additional shallow oxide, shallow sulphide and deep sulphide potential • Additional conglomerate Au targets across the Nullagine and Marble Bar sub-basins could also be explored
  23. 23. TSX-V : NVO|OTCQX: NSRPF 23 Advancing Beatons Creek - 2017 • Cyanidation tests from gravity tailings are very encouraging. Recoveries of +97% achievable. Novo is re-gearing economic study and permitting toward gravity+CIL processing • Gravity+CIL processing means fresh rock can be considered. Novo currently undertaking drilling and trenching to grow and upgrade resources. Work will take 3-4 months • Economic study to be completed by Q3/2017. Plant procurement targeted for late 2017. Construction targeted for Q1, 2018 Cyanidation Tests from Beatons Creek Bulk Sample Tailings Test No. Grind Calc Extraction Extraction Extraction Lime NaCN TEST Size Head at 8 hours at 12 hours at 24 hours Consump. Consump. (P80 µm) (ppm) (%) (%) (%) (kg/t) (kg/t) CT1806 40% Solids - 1.5kg/t NaCN - pH 10.5 150 3.28 99.4% 99.4% 99.4% 1.45 0.37 CT1807 40% Solids - 1.5kg/t NaCN - pH 10.5 106 2.66 95.5% 99.3% 99.3% 1.51 0.33 CT1808 40% Solids - 1.5kg/t NaCN - pH 10.5 75 1.85 97.2% 99.5% 99.5% 1.35 0.40 CT1814 40% Solids - 1.0kg/t NaCN - pH 10.0 212 2.45 92.0% 97.1% 98.8% 0.92 0.32 CT1815 40% Solids - 0.75kg/t NaCN - pH 10.0 150 2.28 96.8% 98.1% 98.7% 0.87 0.29 CT1816 40% Solids - 0.5kg/t NaCN - pH 10.0 150 3.20 94.4% 98.3% 98.8% 1.04 0.15
  24. 24. TSX-V : NVO|OTCQX: NSRPF 24 65 km Blue Spec Shear Zone: • 65 km long shear zone crossing the Mosquito Creek Basin. Novo controls ~65% • Bonanza gold grades at multiple locations • High grade antimony present in some zones
  25. 25. TSX-V : NVO|OTCQX: NSRPF 25
  26. 26. TSX-V : NVO|OTCQX: NSRPF 26 Known shoots are not closed off; grade shells indicate extensions in undrilled areas
  27. 27. TSX-V : NVO|OTCQX: NSRPF 27
  28. 28. TSX-V : NVO|OTCQX: NSRPF 28
  29. 29. TSX-V : NVO|OTCQX: NSRPF 29 FOR MORE INFORMATION CONTACT: Telephone: 1-(416)-543-3120 E-mail: leo@novoresources.com www.novoresources.com

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