Vancouver-based Novo Resources has reported "operational issues" at its Golden Eagle mill at the Nullagine gold project.

The Golden Eagle mill processes ores from the Beatons Creek mine in Pilbara, Western Australia. Its nameplate capacity is 1.8 million tonnes per annum.

Projections for production in the first half of 2022 has been revised down to 25,000 to 27,000 ounces of gold. Initial projections estimated production of 27,000 to 30,000 ounces of gold.

The operational issues are affecting the SAG mill trunnion seal. These issues were first made known in mid-May, with replacement parts anticipated in mid-June.

Down time will be required to install the parts, as well as in the period before the receipt of the parts.

Novo poured first gold at Beaton in February 2021.

The company spent A$8.3 million (US$5.9 million) in October 2020 to refurbish the mill, including an upgrade of the gravity circuit and associated facilities.

The contract was awarded to GR Engineering Services, on a reimbursable cost basis.

The Nullagine gold project contains an on-site laboratory, a 10MW power station, a fully permitted tailings storage facility, and a facility to process mechanical sorter products.

The gold project contains total gold resources of 6.6 million tonnes at 2.1 g/t of gold for 457,000 ounces of contained gold.