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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. read more
We had the opportunity of visiting Novo Resources Corp. (TSXV:NVO) Karratha Project in Western Australia. The main goal of our visit was to determine if the recent significant increase in the share price (up 240% since July 10th) was warranted and in our opinion, it was. Based on our trip, the company’s recently acquired Comet Well property (80% owned), has the potential to host more than 10 million ounces of gold. We highlight that it is very early days, and the company has a significant amount of work to prove us correct. As well, the exceptionally nuggety nature of the deposit is going to provide challenges to determine a true resource grade and the potential exists that an initial NI 43-101 compliant resource could understate grade. We highlight that our view on the project’s potential has been adjusted for these factors and does not include the additional 2km of strike on the adjacent Purdy’s Reward (option to earn 50% from Artemis Resources Ltd. – ASX:ARV). We are comfortable with this opinion because of the pervasiveness of gold nugget discoveries across the trend. Important catalysts remain on the horizon for the company, including the initial bulk sample results from Purdy’s Reward, and the start of exploration at Comet Well. read more
On July 31st, 2017, Novo Resources Corp. (TSXV:NVO) provided an update on ongoing activities at its Karratha, Beatons Creek and Marble Bar projects (Figure 1). Announced in May, through a JV with Artemis, Novo is earning into a 50% interest at Purdy’s Reward in Karratha. Bulk samples were recently collected from Purdy’s Reward and results are expected shortly which should provide clarity on grade. To the southwest, at Beatons Creek, the company recently partnered with Sumitomo to advance the project, results are pending from RC drilling and bulk sampling, and a detailed overview of recent work will be available at the end of August. At Marble Bar, west of Beatons Creek, results are pending from 24 RC drill holes (13 at Virgin Creek, 11 at Contact Creek), which are expected to be released at the end of August. Novo trades at a significant C$604/oz premium to peers (C$145/oz), which is justified because of the projects significant exploration upside both at Beatons Creek and in Karratha, along with Beatons Creek’s potential for low operating and capital costs. Our VP Mining Analysis, Derek Macpherson will be attending a site visit and providing additional commentary in the week ahead. read more
Novo Resources Corp. (TSXV:NVO) has identified a number of gold nuggets from initial trench work completed at Purdy’s Reward, the largest being 4cm in length (Figure 1). Trial bulk samples have been collected from a 2x2m area of a half-meter deep trench and sent for testing to provide clarity on grade. As can be seen in the videos (links below), the nugget locations are identified with metal detectors. The company is developing plans for full-scale trenching and large diameter RC drilling which will include ~30 holes, 20-50m in depth, to follow-up on recent results. Early results provide a strong indication of the possibility of additional discoveries on the company’s recently consolidated wider land package in the Karratha region which bares significant similarities to its more advanced Beatons Creek project. Recall, Novo is earning into a 50% interest of Purdy’s Reward, along with additional claims in the region. Novo trades at C$201/oz a premium to peers (C$82/oz), which is justified because of the projects significant exploration upside both at Beaton’s Creek and in Karratha, along with Beatons Creek’s potential for low operating and capital costs. read more
Novo Resources Corp. (TSXV:NVO) and Sumitomo Corporation, Japan have entered into a non-binding memorandum of understanding (MOU) to advance the development of the company’s Beatons Creek project in Western Australia. Sumitomo will provide technical support personnel to Novo to prepare studies, engineering work and permitting, to be completed in late 2017. Once completed, Sumitomo retains the right to invest in the project or the company under specific terms and conditions which are yet to be determined. Sumitomo’s interest highlights the potential of Beatons Creek. This partnership will provide Novo additional “in-house” expertise to complete the planned pre-feasibility study, due out later this year. We expect upcoming developments and ongoing exploration to provide further value for shareholders. Novo trades at C$151/oz a premium to peers (C$74/oz), which is justified by Beatons Creek low cost, low capex potential along with the potential for significant resource growth both at Beatons Creek and on the wider land package. read more
Novo Resources Corp. (TSXV:NVO) announced it has entered into a binding Memorandum of Agreement (MOA) to consolidate its land holdings (6.5km in strike) at its Karratha gold discovery with Grant’s Hill Gold Pty Ltd (GHG) and Karratha Gold Pty Ltd (KG), the company’s two wholly owned Australian subsidiaries. The 5 tenements include the Comet Well property, adjacent to Purdy’s Reward (Figure 1) where trench work is set to begin shortly. Further exploration work is to be planned for the consolidated ~8km of strike, once permits and approvals are in place. Pursuant to the MOA, Novo will pay GHG and KG AU$1.5 million in cash for signing fees and will issue AU$1.5 million worth of the company’s common shares, along with further payments of AU$3 million in cash and AU$3 million in shares, three years after the initial payment. Novo trades at C$142/oz a premium to peers (C$77/oz), which is justified by Beatons Creek potential for significant resource growth, likely low operating and capital costs as well as the potential for significant regional growth. read more
Novo Resources Corp. (TSXV:NVO) reported initial results from its ongoing 2017 exploration program at its Beatons Creek gold project in Western Australia. Bulk samples were collected from 276 trenches, highlighted by 10.29 g/t Au over 0.8m (BCC17-011), 19.40 g/t Au over 0.5m (BCC17-094) and 17.66 g/t Au over 1.0m Au (BCC17-177), and 23.62 g/t Au over 0.6m (BCC17-184). In addition, certain results from the long trenches intersected wider mineralization, as highlighted by 1.41 g/t Au over 5.0m (BCC17-255), 1.60 g/t Au over 5.0m (BCC17-258), 3.52 g/t Au over 3.7m (BCC17-275) and 2.07 g/t Au over 6.0m (BCC17-276). Initial results are promising and support growth potential, as they have expanded oxide mineralization to the east and suggest the possibility of bulk mineralization at the project. Novo trades at C$155/oz a premium to peers (C$83/oz), which is justified both on the project’s potential for significant resource growth and likely low operating and capital costs. read more
Novo Resources Corp. (TSXV:NVO) and Artemis Resources Ltd. (ASX:ARV) have entered into a joint venture/earn-in agreement, whereby Novo will earn 50% interest of Artemis’ gold rights (gold in conglomerate and/or paleoplacer style mineralization) by spending AUD$2 million on exploration within two years. Artemis’ 1,536 sq. km land package hosts the Purdy’s Reward gold project, adjacent to Novo’s recently announced acquisition prospect the Comet Well project in Western Australia (Figure 1). While this agreement along with the recently staked ground in the Karratha region has the potential to provide Novo the potential for significant resource growth, it is early days and the company’s primary focus remains on advancing its nearby Beatons Creek project (Figure 2) towards production. We view the transaction positively, as the company continues to grow and consolidate its land holdings in the area. Novo trades at C$150/oz a premium to peers (C$81/oz), which is justified both on the project’s potential for significant resource growth and its likely low capital cost. read more
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