PROPERTY GEOLOGY
Diamond drilling during the 2018 field season confirmed the Nullagine sub-basin subdivision of the Hardey Formation by Blake (2001). Mineralisation is restricted to a ~200 m sequence of poorlystratified, poorly-sorted, polymictic, pebble-to-boulder ferruginous conglomerate sequence (P4), which is restricted to an area within a few kilometres of Nullagine (Figure 7.4). The underlying sequence (P3) is of similar composition, but generally finer and including sandstone beds and minor tuffs. The overlying sequence was not separated by Blake and resembles the lower sequence (P3). These beds are characterised by a more regular sediment input and range between sandstone to pebble-conglomerates with a number of extensive tuff horizons.

PROPERTY MINERALISATION
Gold mineralisation within the Beatons Creek conglomerates occurs as fine grains, larger flakes, and rounded particles up to several millimetres across, but rarely exceeding 2 mm. Coarse and fine gold is spatially related to higher concentrations of pyrite, and there seems to be a correlation with gold and the ‘buckshot pyrite’ clast size. Coarse gold particles are regularly visible, and fine gold can readily be panned from crushed matrix material with large pyrite concentrations.

Mineralisation is restricted to fluvial type channel conglomerates or marine lag reworked conglomerates and readily recognisable from outcrop and drill core. The wider Beatons Mineralised unit and Beatons Middle unit contain minor disseminated pyrite, but the background mineralisation is generally no more than 0.1 g/t gold.

DEPOSIT TYPE
Both fluvial and marine lag-type conglomerates are interstratified, indicating the depositional facies in which they formed were laterally proximal. The depositional environment for these conglomerates is interpreted to have been a river fan delta along a coastline as shown in Figure 8.1. During periods of low-stand, a braided river delta prograde seaward, depositing channelised fluvial type conglomerates.

As sea levels rose, wave action winnowed out fine, light sediment leaving behind a transgressive armoured lag deposit of large siliceous boulders and heavy minerals including gold. It is in this environment that the economic conglomerates at the Beatons Creek Project likely formed. This process repeated several times to create the interbedded conglomerates exposed currently.

The Palaeoplacer deposition model employed by Novo for the Beatons Creek Project is based predominantly on detrital gold sourced from the nearby Mosquito Creek Formation and deposited locally. Mineralisation is further concentrated by reworking an already endowed sequence of conglomerates by marine processes as described above.

Similarities with other conglomerate hosted deposits of similar age lends credence to the mineralisation model used. The presence of significant concentrations of rounded detrital pyrite was also a factor in reef and model identification, with the best exploration success primarily driven by understanding the sedimentary processes and their effect on concentrating gold. A clear correlation between high depositional energy (in channels) and amount of reworking (for marine lags) and gold content allows for a fairly straightforward depositional model to be successfully employed.

Some comparable conglomerate hosted deposits debate around potential hydrothermal mineralisation either as the sole mineralising event or as an overprint (Phillips and Meyers, 1989; Phillips and Law, 1994; Barnicoat et al., 1997). Despite local remobilisation of pyrite (and potentially gold) within the matrix, possibly due to dewatering during burial or low level metamorphism, no evidence of hydrothermal overprinting has been documented at Beatons Creek or elsewhere in the Pilbara.

Other debate around organic or microbially-mediated syn-sedimentary gold precipitation (or entrapment) (Hallbauer, 1975a,b; Mossman et al., 2008) is likely of less relevance at the Beatons Creek Project due to the limited amount of organic carbon (kerogen or stromatolites) in the system, but may play an important part with other conglomerate hosted gold targets in the wider Pilbara region (e.g., Virgin Creek).

Exploration by Novo has been successful in delineating the extent of marine lag mineralisation in areas beyond 100 m below surface. High density costean sampling across the full mineralised sequence has subsequently better defined the domains where channel mineralisation is common, with most dominant channels now well defined by sampling and drilling.

The gold-bearing conglomerates (mineralised reefs) at the Beatons Creek Project are generally flat lying and have an average thickness of about 1.5m. The mineralised reefs vary in thickness and grade continuity across the mining area. The terrain is undulating with the mineralised reefs daylighting on the flanks of ridges.

Small scale surface and underground mining has been undertaken on the Beatons Creek Project site as early as the late 1800s and more recently some alluvial mining operations have worked the area.

The potential mine development utilises conventional open pit mining methods involving hydraulic excavators, in backhoe configuration, loading trucks. It is assumed that drilling and blasting will be required for the mining of most of the oxide waste and all the fresh mineralised reefs and waste. Dozers are planned to be used to rip oxide waste to assist excavator productivity, push-up mineralised material and push waste to adjacent valley-fill areas.

Plant feed will be trucked to a Mine Ore Pad (MOP) from which it can be road-hauled to the nearby Golden Eagle Mill.

The conceptual mine plan involves the excavation of three types of material:

- Waste material: barren or very low-grade material (<0.5 g/t) that will be hauled to waste dumps outside of the open pit areas or backfilled into excavated open pit voids. Testwork has indicated that 45% of the waste proposed to be mined has been assessed as potentially acid forming (PAF) Fresh material. It is proposed that this PAF material is encapsulated within planned waste dumps. In addition, an estimated 25% of the oxide waste proposed to be mined will require encapsulation within final landforms.
- Mineralised waste: material above the resource cut-off grade and below the economic cut-off grade (0.5-0.8 g/t) that will be hauled and stockpiled adjacent to the Golden Eagle Mill. Depending upon the prevailing gold price this material may be processed during periods of low plant feed supply, as incremental plant feed or once higher grade plant feed has been depleted.
- Possible plant feed: material above the economic cut-off grade (=0.8 g/t) that will be hauled and processed at the Golden Eagle Mill. The LOM production and processing schedule includes a high grade (HG) fraction (>1.7 g/t), which will be preferentially feed through the processing plant, and a medium grade (MG) fraction (0.8-1.7 g/t) which will be blended with the HG fraction or fed when HG material is not available.

The potential mine excavations are generally fairly shallow often involving the excavation of the tops of ridges, ranging from 20 to 30 m in depth. The fresh rock pits are generally less than 50 m in depth. The deepest potential excavation over the LOM is a small section of the Grant’s Hill final pit which reaches a depth of 80 m. An average slope angle of 50 degrees was used for the pit optimisations which is considered reasonable from observations of the fresh rock observed in available drill core.

Open pit designs were developed by Auralia Mining Consulting in collaboration with Novo mining
personnel.

Pit design parameters:
- Batter angle - oxide - 50 Degree;
- Batter angle - fresh - 70 Degree;
- Batter height - oxide - 10 m;
- Batter height - fresh - 15 to 20 m;
- Berm width - all - 5 m;
- Ramp width - 25 m;
- Ramp grade - 1:9.

The pit optimisation assumed that the potential open pits will be mined using conventional truck and excavator mining methods. Mining of waste and mineralised material will occur using 85 t (example: PC850) hydraulic excavators in backhoe configuration. Haulage of mineralised material and waste will be undertaken by 45 t articulated trucks (example: CAT 745).

At the time of the pit optimisation, it was assumed that all oxide material was free-digging, without the need for drill and blast, with some light ripping to assist excavator productivity. It was assumed that all fresh rock required drill and blast under predominantly dry hole conditions.

Oxide waste is hauled to waste storage areas located adjacent to the Edwards and Grant’s Hill pits. Some waste will be backfilled into valleys adjacent to the central pit areas. Fresh waste will be backfilled into depleted excavations and dedicated surface waste storage areas adjacent to the Grant’s Hill pit if non-acid forming (NAF). Potentially acid forming (PAF) waste would be encapsulated within the oxide waste storage areas.

It is assumed that mining activities at Beatons Creek will be undertaken by contract mining with technical oversight (management, geology, mining engineering and surveying) provided by Novo personnel.

Waste and plant feed material will be excavated utilising diesel powered hydraulic backhoes (1 by 120 t and 2 by 85 t units). The excavators will load either 90 t rigid haul trucks or 45 t articulated haul trucks depending upon the degree of selectivity required. The smaller equipment will also be utilised for the early stages of pit development including haul road construction.Due to the configuration of the mineralised reefs, excavation will utilise mining flitch heights from 1m to 2.5 m.

To assist excavator productivity, it has been assumed that 80% of the oxide pit material will require low powder factor drill and blast under dry hole conditions. Sufficient dozer capacity will be provided to lightly rip about 10% of the oxide pit material. The remaining 10% is assumed to be free dig material. It is assumed that 100% fresh rock requires drill and blast under predominantly dry hole conditions.

WASTE STORAGE AREAS
Oxide waste will be contained within a northern waste dump (adjacent to the Edwards pit), two southern waste dumps (adjacent to the Grant’s Hill pit) or backfilled into valleys in the central portion of the mining area (adjacent to the Golden Crown pits. Provision will be made to encapsulate PAF material within the main oxide waste dumps. A portion of the oxide waste will be rehandled if required for encapsulation of additional PAF material and for reclamation activities.

- subscription is required.

All mineralised material is hauled to the MOP from where it is road hauled 15 km to the Golden Eagle Mill.

The Golden Eagle Mill was designed for a feed rate of 1.5 Mt/a. Historically, the processing plant has operated well in excess of this rate. However, if the physical properties of the material treated are different from the material previously treated, the processing plant treatment rate may be affected.

The processing plant consists of the following unit operations:
• Single stage crushing with a jaw crusher historically capable of processing approximately 400 t/h followed by a crushed ore stockpile.
• Single stage grinding to 150 µm utilising a SAG mill. The SAG mill is 6.7 m diameter by 5.65 m EGL with a 4,000 kW motor.
• Gravity gold recovery by a centrifugal concentrator and intensive cyanidation leach reactor.
• Leaching in two Leach tanks (two by 890 m3 ) followed by carbon adsorption in 7 carbon-inleach tanks (four by 89 ........