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Novo says gold production at Nullagine in Q4 was lower than expected due to technical issues

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(Kitco News) - Novo Resources (TSX: NVO) reported today lower than forecast gold production of 12,833 oz in Q4 2021 due to a change in the December mining schedule and reduction in recovery due to technical issues.

Novo Resources added that in 2021, the company produced 49,364 oz from its Beatons Creek gold project, located in Nullagine, Western Australia.

The company noted that mining for the quarter was on target, but processing and production were impacted by some short-term plant and scheduling issues.

Importantly, Novo said that its processing plant has resumed operating at a target annualized rate of approximately 1.8 million tonnes per annum.

"The company continues to implement its optimized mining approach to guide operational efforts," commented Executive Co-Chairman Mike Spreadborough. "While the inevitable increase in COVID-19 cases in Western Australia may create certain operational challenges in the coming months, the team has been preparing for this situation and is committed to achieving the company's goals."

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The company added that its production forecast for the first half of 2022 of 27 koz – 33 koz Au remains influenced by close-spaced drilling and mine-to-mill reconciliation efforts, assumes receipt of requisite approvals, and is significantly dependent on minimal impact to operations from COVID.

Importantly, Novo said it has substantially completed major works to raise its tailings storage facility and has approximately 24 months of processing capacity remaining.

Novo operates its flagship Beatons Creek gold project while exploring and developing its prospective land package covering approximately 13,250 square kilometres in the Pilbara region of Western Australia.

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