The Foreign Investment Review Board (FIRB) and Department of Jobs, Precincts and Regions (DJPR) approvals remain as the final steps of the formation of the joint venture (JV) and are expected within the March quarter of 2021.
Malmsbury has an existing inferred resource of 104,000 ounces of gold (820,000 at 4 g/t gold).
The partnership with Novo is expected to greatly accelerate potential discovery and resource delineation timeframes at Malmsbury.
“One of the most prospective and underexplored high-grade gold projects”
GBM managing director and CEO Peter Rohner said: “GBM has been working well with the Novo team to advance the exploration of the highly prospective Malmsbury Gold Project.
“The GBM and Novo teams view Malmsbury as one of the most prospective and underexplored high-grade gold projects in the Victorian Goldfields, displaying many of the geological characteristics of the Fosterville epizonal orogenic gold deposit located 58 kilometres to the north.
“While finalising the JV, Novo and GBM have continued to accelerate exploration at Malmsbury.”
Joint venture agreement
Novo Resources will earn a 50% interest in the Malmsbury Project and the right to earn an additional 10% interest by incurring A$5 million in exploration expenditure over a four year period.
Novo chairman and president Quinton Hennigh commented: “We are delighted to be working closely with the technically savvy GBM exploration team at Malmsbury.
“Early-stage work is already resulting in very encouraging results that support our thesis that Malmsbury hosts a high-grade epizonal orogenic gold system like that at Fosterville to the north.
“Recent rock chip sampling is not only turning up high-grade gold assays in vein material but importantly, in a disseminated form in mineralized host rocks, a characteristic of the high-grade Fosterville lodes.
“Although early days, we anticipate working with GBM to ramp up the level of exploration at this very exciting project for both companies.”