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Wednesday, October 18, 2017 Derek Macpherson

Early NVO Drill Results Suggest Consistent Conglomerate Thickness

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Novo Resources Corp. (TSXV:NVO) has completed drilling of 12 diamond core holes in a 400x200m area (Figure 1), at its earn-in and JV, Purdy’s Reward in Western Australia. In the area drilled the conglomerate had a true width of between 4 and 15m, hole 17PDD007 (pictured in the press release) had an interval of 9.5m of conglomerate. This confirms our view and is important step in de-risking the project. The two main risks to our +10M ounce potential estimate, are conglomerate thickness and grade. This diamond drill program has started reducing the risk around thickness, the ongoing bulk samples and planned large diameter drill program should have the same impact on grade. At its current share price, the market is pricing in a sizeable resource at Novo’s Karratha project, which based on the data to date, we view as very possible. However, additional data, including additional diamond drilling to determine conglomerate thickness (ongoing) and assay results from the ongoing bulk samples and planned large diameter drilling (early 2018), is needed to fully understand this projects potential.  read more


Thursday, September 21, 2017 Derek Macpherson

NVO To Begin Drilling at Purdy’s Reward

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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 project. read more


Wednesday, September 20, 2017 Derek Macpherson

RCKS Charts: NVO

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In this edition of RCKS Charts, Keith has evaluated Novo Resources Inc. (TSXV:NVO).  read more


Wednesday, September 20, 2017 Derek Macpherson

NVO to Form JV with Calidus

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Novo Resources Corp. (TSXV:NVO) and Calidus Resources Ltd. (ASX:CAI) entered into a binding terms sheet to form a joint-venture on Novo’s tenements surrounding Calidus’ Warrawoona project in Western Australia. The tenements are located near Novo’s Marble Bar project (Figure 1). Upon completion, Calidus will issue 20,000,000 shares to Novo to earn a 70% interest in the tenements, noting any interest that drops below 10% will change to a 1% NSR. As per a recent update regarding Karratha, news is expected as exploration gets underway, specifically regarding the geology of Comet Well and Purdy’s Reward 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 some upside remains to the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project.  read more


Tuesday, September 05, 2017 Derek Macpherson

Kirkland Lake Invests C$56 million to Own 18.2% of Novo

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Novo Resources Corp. (TSXV:NVO) announced today that through a non-brokered private placement, Kirkland Lake Gold Ltd. (TSX:KL) will increase its investment in Novo to ~18.2% by purchasing 14 million shares at a price of C$4.00 for a total value of C$56 million. This is combined with the company’s recent acquisition of 9.2% of the company, which corresponds with a similar size sale announced by Newmont on Friday at C$1.60 per share. Kirkland retains the right to participate in future financings to maintain its ownership in Novo. The proceeds significantly strengthen Novo’s balance sheet, with C$70 million in the company’s treasury pursuant to the closing, anticipated on September 15, 2017. As per a recent update regarding Karratha, more news is expected as exploration gets underway, specifically regarding the geology of Comet Well and Purdy’s Reward 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 some upside remains to the current share price, which is likely to be realized as Novo demonstrates the potential of its Karratha project. read more


Thursday, August 31, 2017 Derek Macpherson

NVO Details Karratha Exploration Activities

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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. read more


Tuesday, August 15, 2017 Derek Macpherson

NVO Completes JV with Artemis

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Novo Resources Corp. (TSXV:NVO) has signed a definitive agreement with Artemis Resources Ltd. (ASX:ARV), to form a 50:50 JV on 38 tenements/tenement applications which include Purdy’s Reward. Novo is required to spend AUD$2 million on exploration within two years, as well as issuing 4 million common shares to Artemis, once completed and approved, the companies will form a 50:50 JV managed as one by Karratha Gold. An additional 19 Artemis tenements/tenement applications are expected to be covered under another definitive agreement in the future. Together the companies are undertaking exploration work which includes systematic trench bulk sampling and large diameter RC drilling targeting Purdy’s Reward. Completing the JV is an important catalyst for the company, as it continues to consolidate land in Karratha. 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. read more


Friday, August 11, 2017 Derek Macpherson

NVO Acquires Additional Land in Karratha

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Novo Resources Corp. (TSXV:NVO) has entered into an option agreement to acquire The Pipeline Project located in the Karratha region. To acquire the option, Novo will make a payment of 500,000 Novo shares to the other party and Novo has 12 months to purchase the project, if it chooses, by issuing 2,500,000 common shares. The transaction is the most recent in a series of acquisitions to consolidate property in the Karratha region. The company has plans to complete additional work at its Karratha Gold Project in the near-term, which should begin to provide a better understanding of the project’s grade and continuity. 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. read more


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