Novo Resources has regained full control of its expansive Egina gold project in Western Australia's Pilbara region after Northern Star Resources decided to withdraw from its non-core exploration earn-in agreement. The $28 billion gold producer walked away from the deal, returning the ground and all exploration data gathered during its tenure to Novo.
The Egina project sits just 30 kilometres from Northern Star's world-class Hemi gold deposit, which holds over 13.6 million ounces of gold. The earn-in agreement was originally struck with De Grey Mining, the discoverers of Hemi, before Northern Star acquired De Grey for $5 billion. Northern Star met the initial $7 million exploration expenditure requirement but chose not to exercise its right to earn a 50% interest by spending an additional $18 million by mid-2027.
Novo now has the freedom to plot its own course for the project. The company's geological team will undertake a fresh assessment of Egina using the data returned by Northern Star. The project is a regional gold belt play in the highly prospective Mallina Basin, characterized by shallow cover overlying under-explored basin rocks.
Beyond Egina, Novo has been active across its broader Pilbara portfolio. The company recently completed a 16-hole, 2628-metre reverse circulation drilling program at its Wyloo Southeast prospect, with samples already at the lab. The same rig is now moving to the Cronus prospect, 23km south-east of Karratha, where drilling is scheduled to start next week.
Novo also holds multiple high-grade gold prospects in Victoria's Bendigo region, including the flagship Belltopper prospect, 60km southwest of Agnico Eagle's Fosterville mine. The region has historically produced over 60 million ounces of gold. Novo says the Egina handover was amicable, with Northern Star retaining a supportive strategic relationship through its remaining shareholding in the company.
