Priced as of September 21, 2017
Novo Resources Corp. (TSXV:NVO) received approvals for core drilling at Purdy’s Reward, the JV prospect with Artemis Resources Inc. (ASX:ARV). As previously
announced, drilling will comprise of scout diamond core drill holes to test depth and thickness of the gold-bearing conglomerates, to commence around
September 27th, 2017, followed by large diameter RC holes to collect bulk samples around October 15th, 2017. In addition, the company noted that trenching
activities have already started, however is waiting on approvals to mobilize the hardrock trencher. The lab results for bulk sampling is expected to
be turned around in 4-6 weeks. As well, the company provided a detailed explanation of how they plan to sample material generated from the large diameter RC holes and trenches. Results from initial drilling will be an important upcoming
key catalyst, providing the company and market with understanding of grade, gold distribution and conglomerate thickness. 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
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5C 1G6
Priced as of prior trading day's market close, EDT (unless otherwise noted).
All values in USD unless otherwise noted.
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Novo Resources Corp. - TSXV:NVO - 1,2,3,4
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