Novo Reports CAD 4.2M Q2 Loss with Key Gold Drilling Milestones Achieved

Exploration Progress in Western Australia and New South Wales

In its Q2 2025 update, Novo Resources Corp. highlighted significant exploration activity across its portfolio, notably completing its maiden aircore (AC) drilling program at the Balla Balla Gold Project in the Pilbara region of Western Australia. This early-stage program tested a 10-kilometre trend along the Sholl Shear Zone, with assays revealing broad zones of low-level gold anomalism and notable silver and antimony values, indicating promising hydrothermal activity.

Meanwhile, in New South Wales, Novo completed its first reverse circulation (RC) drill program at the Tibooburra Gold Project, targeting the historic Albert Goldfield. The drilling at the Clone prospect returned high-grade gold intercepts, including 12 metres at 5.90 grams per tonne gold and 17 metres at 2.40 grams per tonne, confirming continuity of mineralisation over a 300-metre strike. These results build on Novo’s systematic fieldwork and historical data, setting the stage for further drilling in the second half of 2025.

Financial Performance Reflects Cost Discipline Amid Exploration

Financially, Novo reported a net loss after tax of CAD 4.2 million for Q2 2025, a marked improvement from the CAD 7.2 million loss in the same quarter last year. This reduction was driven by lower exploration expenditure, which fell to CAD 2.1 million from CAD 3.7 million, and decreased general administration costs. The company’s cash and short-term investments stood at CAD 6.0 million as of June 30, 2025, down from CAD 10.7 million at the end of 2024, reflecting ongoing operational spending.

Other income during the quarter included a modest foreign exchange loss and proceeds from the sale of shares in GBM Resources Limited. Interest and finance costs remained relatively stable, with non-cash expenses related to leases and deferred consideration continuing to impact the financials.

Liquidity and Going Concern Considerations

Despite the improved loss profile, Novo’s management disclosed a material uncertainty regarding the company’s ability to continue as a going concern. The cash flow forecast prepared by the directors extends through August 2026 and assumes controlled discretionary spending, maintenance of minimum contractual obligations, and potential asset disposals or joint ventures to bolster liquidity. The company holds available liquidity of approximately CAD 7.2 million, including cash, short-term investments, receivables, and marketable securities.

The directors remain cautiously optimistic about Novo’s financial runway but acknowledge that failure to meet forecast assumptions could necessitate capital raising or alternative funding strategies.

Sustainability and Community Engagement

On the sustainability front, Novo reported no environmental or heritage incidents during the quarter and one lost time injury related to dehydration. The company continues to engage closely with Indigenous communities and regulatory bodies in Western Australia and New South Wales, emphasizing environmental stewardship and social responsibility. Novo’s sustainability strategy aligns with global frameworks such as the Global Reporting Initiative and the International Council of Mining and Metals principles.

Looking Ahead

Looking forward, Novo plans further RC drilling at Sherlock Crossing and Southeast Wyloo in the Pilbara, as well as expanded drilling campaigns at John Bull and Tibooburra in New South Wales. These programs aim to build on the encouraging early results and advance the company’s portfolio toward potential resource definition.

Investors will be watching closely how Novo balances its exploration ambitions with financial discipline amid the liquidity challenges and ongoing market uncertainties.