Novo Resources Corp. (TSXV:NVO) provided an update regarding exploration plans for its Karratha gold project in Western Australia. Drilling will comprise
of scout diamond core drill holes to test depth and thickness of the gold-bearing conglomerates, followed by large diameter RC holes to collect bulk
samples. Trenching and drilling will begin at Purdy’s Reward where the exploration license is already in place and certain activities are permitted.
Exploration will follow at Comet Well and the company’s surrounding tenements upon receiving exploration permits and once the tenements are granted.
The company is expecting to be granted the tenements for Comet Well within 1-2 months and 6-9 months for the surrounding tenements. Greater detail
concerning exploration plans is provided by the company in the August 31, 2017 press release. More updates are expected as exploration gets underway,
specifically regarding the geology of Comet Well over the next couple of weeks. Based on our preliminary value for Beatons Creek (C$150-200 million)
plus the C$400-560 million we would ascribe to Karratha based on our +10 million ounce estimate at Comet Well, we believe modest upside remains to
the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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Novo Resources Corp. - TSXV:NVO - 1,2,3,4
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