Novo Flags Material Uncertainty Despite Exploration Progress and Asset Sales

Exploration Momentum in the Pilbara

During the third quarter of 2025, Novo Resources Corp. intensified its exploration efforts across its Pilbara tenure in Western Australia, focusing on high-grade gold and gold-antimony targets. The company completed its maiden reverse circulation (RC) drilling program at the historic Clarke Mine area within the Sherlock Crossing project, aiming to delineate down-dip continuity and extend mineralisation along strike. Results from this program are eagerly awaited in the coming quarter and will guide further drilling plans.

Simultaneously, reconnaissance field mapping and sampling at the Southeast Wyloo prospect have laid the groundwork for an upcoming RC drilling campaign, pending regulatory and heritage approvals. The sampling revealed promising polymetallic quartz vein systems with notable grades of gold, silver, antimony, lead, and zinc, underscoring the prospect's potential.

Expanding Footprint in New South Wales

Beyond Western Australia, Novo continues to advance its gold exploration in New South Wales. At the Tibooburra Gold Project, detailed mapping and sampling have been conducted to refine drill targets across several prospects, with assay results expected soon. Meanwhile, the John Bull Gold Project is poised for an approximately 1,750-metre RC drill program, contingent on securing necessary approvals, targeting multiple key zones within the New England Fold Belt.

Financial Performance and Liquidity

Financially, Novo reported a net loss after tax of CAD 4.52 million for Q3 2025, an improvement from CAD 5.69 million in the same quarter last year. The reduction was driven by lower general administration costs, despite a slight increase in exploration expenditure reflecting the ramp-up in drilling activities. Cash and short-term investments stood at CAD 2.42 million as of September 30, 2025, down from CAD 6.29 million a year earlier.

However, liquidity received a significant boost post-quarter with the sale of 400,000 shares in San Cristobel Mining Inc. at USD 16 per share, generating gross proceeds of USD 6.4 million (approximately CAD 8.9 million). This transaction not only improved cash reserves but also led to a revaluation of the remaining investment in San Cristobel Mining, positively impacting the company's marketable securities portfolio.

Sustainability and Governance

On the sustainability front, Novo reported no safety, environmental, or community incidents during the quarter. The company continues to engage closely with Indigenous communities and regulatory bodies, emphasizing responsible exploration practices and environmental stewardship across its extensive landholdings. Internal controls over financial reporting remain robust, with no significant changes affecting their effectiveness.

Looking Ahead

Looking forward, Novo plans to leverage upcoming drill results from Sherlock Crossing and initiate drilling at Southeast Wyloo and John Bull, subject to approvals. While the company maintains a going concern basis, management acknowledges material uncertainty due to cash flow forecasts and the need for prudent capital management. The strategic disposal of assets like San Cristobel Mining shares demonstrates Novo's commitment to strengthening its financial position as it advances its exploration pipeline.