According to Novo, there is scope to increase to an 80 per cent interest for the project.

Novo will conduct due diligence at the project for a six month initial period and has issued Kalamazoo 24,883 initial shares, equal to $2 million.

Located in the Malmsbury gold field in Victoria, the Queens Gold project is located 55 kilometres south of Kirkland Lakes’ Fosterville mine.

Novo is confident that Malmsbury could have similar mineralisation to Fosterville.

The interest in the Queens gold project means Novo also has an interest across the entire Malmsbury gold field, along side its option to purchase-joint venture for GBM Resources’ Malmsbury project.

Novo has a 11.6 per cent fully diluted interest in Kalamazoo following an investment made on 14 January 2020.

In January, Novo subscribed to 10 million units of Kalamazoo at $0.40 per unit.

“Novo’s main operational focus remains conglomerate gold in the Pilbara,” Novo Resources chairman and president Quinton Hennigh said in January.

“Here at Novo, we have kept our eye on the various exploration companies operating in the Victoria region around Fosterville. When we reviewed Kalamazoo’s recent drill results, we came to the conclusion that this high–grade mineralization displays many of the same characteristics as high-grade at Fosterville.