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Novo Resources Corp. (TSXV:NVO) released initial bulk sample results from its Karratha Gold Project in Western Australia, providing a first look at the indication of high grade gold mineralization. Results of the sample taken from Purdy’s Reward (50% earn-in/JV) returned a weighted averaged of 67.08 g/t Au, which included 87.76 g/t Au (subsample #1) and 46.14 g/t Au (subsample #2). Importantly, in both subsamples a significant amount of gold was not contained in the coarser (nuggety) portion. In subsample #1 12.53% in the fine fraction and in subsample #2 15.63% was in the fine fraction, this suggests disseminated (or background) grades of ~11 g/t and 7 g/t, respectively. This is important as our +10 million ounce estimate is based on disseminated grades of 3 g/t (excludes nuggets). It remains early days and there is plenty of work required to definitely demonstrate continuity and grade but these initial results are encouraging. In the coming weeks, plans are still underway to complete full-scale, systematic trench bulk sampling and large diameter RC drilling which will include ~30 holes, 20-50m in depth, to follow recent results. To note, the agreement between Novo and Artemis Resources Ltd. (ASX:ARV) is expected to be executed by August 23rd 2017, which subsequently Novo will earn a 50% stake in Purdy’s Reward, adjacent to its recently acquired/consolidated Comet Well property. 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 some upside remains to the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project.
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