Novo Resources Corp general manager of exploration Kas De Luca and executive co-chair and acting CEO Mike Spreadborough discuss the company's upcoming drilling program at the Balla Balla Gold project in WA.
Proactive: Mike, Kas, welcome.
Mike Spreadborough: Great to be here.
Kas De Luca: Good morning.
Drilling at Balla Balla
Proactive: Mike, let’s start with you. Can you talk us through the key objectives of this drilling program at Balla Balla and when you expect to begin?
Mike Spreadborough: Balla Balla fits into what will be a very busy period for Novo between now and mid-year. This will be the first of several drilling programs we’ll be rolling out. The announcement we put out this week outlines the context of this drilling, which we hope to start in a couple of weeks, weather permitting. The Pilbara has had some rain, which makes things difficult.
You'll see further announcements soon regarding our New South Wales projects, which will begin drilling after this program. We’re excited about the work ahead, and shareholders can expect four months of news flow as these programs progress.
Proactive: Kas, you’ve reviewed geophysical interpretation and historical drilling data. How has that influenced the selection of priority drill targets at Balla Balla?
Kas De Luca: Balla Balla is an early-stage exploration project. We've been working on it for about 18 months and finally got the tenement granted at the end of last year. Since then, we've completed compliance work, including heritage approvals, government regulations, and landholder access.
Geologically, we really like this area, particularly the Sholl Shear Zone. It’s a 200-kilometre-long, major crustal-tapping shear zone. We’ve identified a ten-kilometre trend within it where we are generating our targets. There’s limited historical work, but we’ve seen indications of gold, along with key pathfinder elements such as arsenic and antimony. These are common indicators in the Mallina Basin and the broader district.
The structure here is complex, and we’re running a first-pass drilling program to assess the fertility of the system.
The Sholl Shear Zone
Proactive: The Sholl Shear Zone is significant, and De Grey Mining is also operating in that area. Can you explain why being in this region is important?
Kas De Luca: The Sholl Shear Zone runs through the tenements we've selected. Its fertility is well-documented, with clear analogs to structures seen in the Mallina Basin. De Grey Mining’s Hemi Gold project sits across other major shear zones, such as the Mallina Shear Zone, the Wohler Fault, and the Loudens Fault.
While our rocks differ in some aspects, the structural setting is compelling. The Shear Zone itself is a major fluid conduit, and we’re particularly interested in the subsidiary linking structures coming off it. These are prime targets for gold mineralisation.
Broader strategy
Proactive: Mike, how does this project fit into Novo’s broader exploration strategy and long-term growth objectives?
Mike Spreadborough: In December, we secured two great farm-in deals in New South Wales at Tibooburra and Grafton (John Bull). These projects have seen past geological work with encouraging high-grade hits.
Earlier this year, our field teams conducted soil sampling and mapping, and results will start coming through over the next couple of months, leading into drilling programs.
Our strategy is to focus on projects with the potential to host standalone deposits exceeding one million ounces. We believe this is an underexplored opportunity within Australian gold exploration. Investors looking for strong leverage to value should find our approach compelling.
Currently, we have a strong portfolio, from early-stage work at Balla Balla to our joint venture with De Grey, and finally, our more advanced exploration in New South Wales. We also have A$12 million in the bank, putting us in a strong position.
And, of course, gold is at record highs in both US and Australian dollars, making it a great time to be in gold exploration.
Proactive: It’s definitely an exciting time for gold and for Novo Resources, given all these active projects. Kas, Mike, thanks for your time today, and good luck with the work ahead.
Kas De Luca: Thanks, Jonathan.
Mike Spreadborough: Thank you very much.