Could you elaborate on what makes Beatons Creek Paleoplacer gold project such an exciting project for Novo Resources?

Novo Resources’ Beatons Creek Paleoplacer gold project is located about 200 kilometers north of Newman and has been a focus for the company since its arrival in Australia. The company began its exploration activities at a very conceptual level, building the project from nothing more than a vision to its current resource of 300,000 ounces indicated and 260,000 ounces inferred. Novo Resources is now moving towards developing a modest scale gold mine with the intent of beginning construction in 2018.

One of the exciting aspects of the Beatons Creek project is the potential for the deposit to be much larger than anticipated. Novo Resources has 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, the company expects over time it will grow considerably.

Moving on to funding, 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 and managed to raise around $9 million at the beginning, which helped the company get through the early part of the downturn. Since then, several critical events have taken place that have assisted with Novo Resources’ success. For example, Newmont invested in the company in September 2013 to become the largest shareholder and currently hold just under 20%. Through that share purchase, warrants were exercised which brought in more capital that allowed the company to continue work through late 2015. Novo Resources also had a couple of modest equity financings in 2015 and 2016.

Most importantly, the company has recently completed an equity financing that will catapult it through a resource expansion and pre-feasibility study. Despite the cyclical nature of the mining industry, Novo Resources’ ability to navigate through challenges has been aided by the strategic partnerships it has formed and the ongoing support from its shareholders.

What advancements in technology have benefited Novo Resources’ operations?

Novo Resources has embraced several forms of modern technology to enhance its exploration activities. For example, the company 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.

In addition, when the company begins mining, it plans to utilize high-tech equipment such as GPS devices to track mining activities. These advancements in technology have enabled Novo Resources to enhance its exploration and mining activities, while also reducing costs and improving efficiency.

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

Despite being based in Vancouver, Novo Resources has developed a strong shareholder and support base in North America. Canadians are miners through and through and are great people to work with. In Australia, the company is looking to build a network of investors because the mining community is solid here as well.

One of the challenges of operating in Australia is the time difference between the two countries, which can make communication and decision-making more challenging. Additionally, the regulatory and legal environment in Australia is different than in Canada, which requires the company to navigate these differences when operating in the country.