Company News – Tue 8 Aug, 2017

Novo Announces First Bulk Sample Results From Its Karratha Gold Project, Western Australia

As many of you pointed out this morning Novo Resources was halted this morning at the request of the Company. Now we have the news out that halted the stock… The first bulk sample from the Karratha Gold Project. From a first glance this bulk sample looks very good and the market is taking note.

I am a shareholder and happy to say that Novo has been a sponsor on the site well before this discovery was made.

I will be having Quinton on the show hopefully this week. If anyone has any questions please email me or comment below.

Click here to visit the Novo website for more information on the Company.

Here’s the news…

VANCOUVER, B.C., Aug. 08, 2017 (GLOBE NEWSWIRE) — Novo Resources Corp. (TSX-V:NVO) (OTCQX:NSRPF) (“Novo” or the “Company”) is pleased to announce analytical test results from a bulk sample of gold-bearing conglomerate collected from a trench at the Purdy’s Reward prospect, which is covered by an earn-in/joint venture memorandum of agreement between Novo and Artemis Resources Limited (see details below) and part of Novo’s greater Karratha gold project.  As discussed in Novo’s news release dated July 12, 2017, this sample originates from the uppermost horizon of an 11-meter thick sequence of mineralized conglomerate beds. Purdy’s Reward is part of an 8 km trend that has recently been identified as highly prospective for conglomerate-hosted gold mineralization considered analogous to the Witwatersrand in South Africa.

Analytical Testwork

Given the extremely coarse nature of gold found in conglomerates at the Karratha gold project, Novo collected a trial bulk sample from the Purdy’s Reward prospect to help establish sampling and assay protocols.  Mineralized conglomerate was collected from a 2×2 meter exposure of bedrock at the bottom of a half-meter deep trench.  The sample was split into duplicate subsamples and was shipped to Nagrom Metallurgical Laboratory (“Nagrom”) in Perth, WA.

Methodology:

  • Each sample was crushed to -6 cm (P100) and dry screened at 2mm. The coarse fractions were fed through a Steinert XSS T sorting machine (Figures 1 and 2) that utilizes X-Ray imaging and an induction coil (metal detector) to identify and separate particles of rock containing coarse metallic gold particles.  The -2mm fractions were assayed by screen fire assay. The concentrate from this process is referred to as “Sorted Concentrate” (Figure 3).  Rock fragments without identifiable coarse gold particles constitute the “Sorted Tailings.”
  • The Sorted Concentrate was crushed to -2 mm (P100) and coarse gold nuggets (“Coarse Gold”) were recovered by hand during crushing. A subsample of the crushed Sorted Concentrate was taken and assayed by screen fire assay. Remaining crushed Sorted Concentrate was then hand panned generating a gold concentrate (“Fine Gold Concentrate”), middling and tailing.  The Coarse Gold and Fine Gold Concentrate were combined and acid washed (Figure 4), and its gold content was determined using specific gravity methodology. The hand panned middling and tailings were analysed by screen fire assay.
  • The Sorted Tailings were crushed to -2 mm (P100) and passed over a wet concentrating table to produce a concentrate, middlings and tailings.  The gold content of the wet table concentrate and middlings was determined by screen fire assay and the gold content of the wet table tailings was determined by LeachWell cyanide leach analysis.  Results from the wet table concentrate and tailings were mathematically recombined to generate a calculated head grade of the Sorted Tailings.
  • Results are presented in Table 1.  The calculated head grade of subsample #1 is 87.76 gpt Au, and subsample #2 is 46.14 gpt Au.  The weighted average grade of these two subsamples is 67.08 gpt Au.

Table 1 – Bulk Subsample Analytical Results:

Subsample ID Subsample Dry Weight (kg) Sorted ConcentrateWeight as % of Total Weight Calculated Head Grade of Subsample  (Au gpt) % Contribution of Gold in the Sorted Concentrate to the Calculated Head Grade of the Subsample % Contribution of Gold in the Sorted Tailingsto the Calculated Head Grade of the Subsample
#1 272.8 2.15 % 87.76 83.12 % 12.53 %
#2 269.5 1.82 % 46.14 81.99 % 15.63 %

Interpretation:

Results from this testwork are encouraging at several levels.

  • The Steinert XSS T sorting machine proved highly efficient at sorting out coarse gold-bearing rock particles. Although the Sorted Concentrate represents only 2% of the overall sample weight, it contains about 82.6% of gold.  Because this machine proved practical and efficient, Novo sees it as a means of assisting determination of grade of this very unusual mineralization.  Given this machine can operate at about 48 tonnes per hour, Novo also considers it potentially viable for future processing applications.
  • Although the vast majority of gold resides in the coarse fraction, a significant fine-grained gold component is evident.  Although more work is needed to further quantify this fine-grained gold component and its distribution, it may prove meaningful when it comes time to demonstrate continuity and grade of this very unusual deposit.
  • Novo considers the calculated head grade of subsamples #1 and #2, 87.76 and 46.14 gpt Au respectively, very encouraging.  The weighted average grade of these two subsamples, 67.08 gpt Au, which equates to 2.16 oz per tonne.

With this data in hand, Novo plans to work with Nagrom over the next few weeks to generate a refined protocol for sampling and analysing conglomerate-hosted gold mineralization at the Karratha gold project.  Novo and Artemis plan to undertake full-scale, systematic trench bulk sampling along the strike of the conglomerate package at Purdy’s Reward, beginning in a few weeks.  Plans are also being made to test the use of large diameter reverse circulation drilling on down-dip projections of these conglomerates.  Novo has been in discussions with a drill contractor with capabilities of drilling 17.5” (44.5 cm) diameter holes and is preparing necessary permitting to undertake a pilot program of around 30 shallow, 20-50 meter-deep holes.

“We are very pleased with results from our initial bulk sampling exercise,” commented Dr. Quinton Hennigh, Chairman, President, and Director of Novo Resources Corp. “Not only was the grade of this bulk sample encouraging, the Steinert XSS T sorting machine proved highly efficient at picking rock with coarse gold particles.  We see value in its use for helping determine grade of this very unusual mineralization as well as potential use for future commercial applications.  We look forward to working with Nagrom over the next few weeks to develop sampling and analytic protocols applicable to our upcoming trenching and drilling program.  Novo has developed extensive experience testing unconventional conglomerate gold deposits at our Beatons Creek project. Traditional exploration and analytic techniques are not well suited to this style of gold deposit.  We look forward to exploiting our many years’ experience at Beatons Creek to our and Artemis’ benefit at Karratha. While these initial results are encouraging, a systematic and careful work program drawing on our experience is required.”

Purdy’s Reward is part of Novo’s greater Karratha gold project located in the West Pilbara, Western Australia. The Purdy’s Reward tenement is situated on lands that are subject to a binding earn-in/joint venture memorandum of agreement (subject to the execution, by August 23, 2017, of definitive agreements and the satisfaction of certain industry standard conditions) with Artemis Resources Ltd, an ASX-listed mining company (please refer to Novo’s news release dated May 26 for further details).  Novo delivered draft long-form definitive agreements to Artemis several weeks ago and is currently working with Artemis to close out the documents. Novo and Artemis are each entitled to 50% of rights to conglomerate and paleoplacer gold on ground the subject of the Novo-Artemis deal, with Artemis having 100% of all other minerals (including all minerals in JORC reserves and resources announced by Artemis as at May 18, 2017).

Novo recently completed consolidation of the adjacent Comet Well project (please see the Company’s news release dated August 3, 2017).  The Comet Well project covers 54.5 square km, the Novo-Artemis earn-in/joint venture covers 1,536 square km, and Novo has staked a 100% interest in 7,638 square km.
Dr. Quinton Hennigh, a qualified person as defined by National Instrument 43-101 and the Company’s Chairman, President and a director, has approved the technical contents of this news release.

About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia and built up a significant land package covering approximately 10,000 km2. Novo also controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au-Ag vein district, Nevada. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com.

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”
Quinton Hennigh
Chairman and President

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the statements as to planned exploration activities and the Company’s expectation that it will acquire the right to earn an interest in the Purdy’s Reward prospect.  These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as Novo having sufficient cash to fund the planned drilling and other activities, and the satisfaction or waiver of the conditions precedent of the earn-in/joint venture memorandum of agreement between Novo and Artemis Resources Limited relating to the Purdy’s Reward prospect.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Photos accompanying this press release are available at:

http://www.globenewswire.com/NewsRoom/AttachmentNg/260390da-9371-4feb-825f-46fb7be44e46

http://www.globenewswire.com/NewsRoom/AttachmentNg/1f764512-ad65-4e6f-8d28-9c7f79c8df4f

http://www.globenewswire.com/NewsRoom/AttachmentNg/ddf7927e-c38f-4fc8-94ce-81352efeccf7

http://www.globenewswire.com/NewsRoom/AttachmentNg/28e9bf17-7f84-4bb8-9909-b3b03023fff2

 


Comments:
  1. On August 8, 2017 at 1:03 pm,
    CFS says:
  2. On August 8, 2017 at 1:04 pm,
    b says:

    Maybe Bob could comment on this.

    • On August 8, 2017 at 1:23 pm,
      Bonzo Barzini says:

      Bob has gone walkabout in the outback.

      • On August 8, 2017 at 2:49 pm,
        Robert Moriarty says:

        BB:

        Brent Cook and I went to see the property last week. It was pretty incredible. In the end the real story is the fact that Quinton Hennigh alone understood the meaning of massive gold in conglomerates. It’s not a new story, I brought back with me excerps from a geological survey first printed in 1909.

        The gold style is unique. It is paleo placer in the form of nuggets but not from a hard rock source. Brent Cook has done a brilliant writeup on it for his readers. It’s going to be big but with only one assay, it’s probably a little early to be calling it a billion ounce deposit. I do expect the shares to correct but have no idea of where they will either correct from or to.

        This is the biggie that is going to light up the resource market, it is the Voisey’s Bay of this cycle and it’s going to go a whole lot higher. After we have a lot more data.

        • On August 8, 2017 at 2:55 pm,
          OOTB Jerry says:

          Thank you BOB……..appreciate

        • On August 8, 2017 at 4:12 pm,
          b says:

          very interesting Bob, thx

        • On August 8, 2017 at 4:43 pm,
          Excelsior says:

          Thanks for the updated Bob M. I agree that Novo has really kicked of the discovery cycle with this one and generated genuine enthusiasm in the exploration space again. It is also because of the potential of the sheer size and scope of Novo Resources discovery with Artemis that has ignited a fire in investors minds.

          GT Gold shot up afterwards, and the JV trio of Tudor Gold, Teuton Resources, and American Creek shot up today.

          Resource investors are finally responding to Exploration and Discovery stories again.

        • On August 8, 2017 at 5:48 pm,
          Matthew says:

          This is great for the sector. Congrats to NVO shareholders and shame on me for missing it.

          I think it’s going to 3.50-3.60 next.

          http://stockcharts.com/h-sc/ui?s=NVO.V&p=W&yr=3&mn=5&dy=13&id=p35701287353&a=537045510

  3. On August 8, 2017 at 1:21 pm,
    Excelsior says:

    (NVO) up 8% after coming off trading halt. The markets liked the assay results (but it still looks overbought to me because of how much it has run away from it’s longer term moving averages.

    That is the power of exploration discovery + imaginations run wild though….

    ________________________________________________________________________

    Here’s a nice counter-balancing opinion from a working geologist Dan Kogaion where he is still somewhat skeptical of the bulk sample collected being representative:
    __________________________________________________________________________

    @DanO – “@stateside don’t include this in your show ’cause some might not like different opinions than their own. Look at the $nxe thread. It’s religious. A cult. You cannot say a word or the religious police is going to come after you. I suspect that if $nvo sp holds we will see the same here.”

    OK, $nvo I expected this pr. It sheds some light on the type of mineralization and grades present at that specific location. It is one single rich spot sampled though (possible bias that could render the sample not representative). One spot that was most likely chosen because they have found some nuggets in there. Picked the nuggets from the trench then deepened it and collected this larger sample. What would happen if they were to collect a larger sample somewhere in between two nugget finds? Like 50 m away from a nugget find from an area that was previously scanned by a metal detector and no nugget was found? ”

    “Teevee mentioned something about ‘is it representative’? It is definitely not representative for the whole reef. The gold content of a (paleo)placer or of a vein varies a lot along strike and dip and the richest parts only will be included in resource estimates. They need to sample a lot to come with an average grade. The collection of this ‘bulk sample’ is similar with the collection of a 500 kg vein material from a part of the vein that I chose because it features visible gold in the quartz gangue. One thing that I wanted to find is the presence of fine gold. I expected them to have some and it is good that it exists in their sample. But I have many more questions here. Paleoplacer related, Wits related, gold distribution related, etc. You won’t hear them now but I might email the co even though from my previous experience dealing with Leo Karabelas he’s not that quick to answer them. He says I will pass them to the geologists but then weeks go by and no one contacts you. Busy ppl. Anyway this is a positive pr imo. Positive does not mean that they have a mineable gold deposit though. But an interesting one that’s for sure. And which might have potential.”

    • On August 8, 2017 at 1:24 pm,
      Excelsior says:

      The Hedgeless Horseman responds back to DanO’s comment on NVO…..

      ____________________________________________________________________________

      @HHorseman – “DanO I don’t think anyone banks on this being representative for even a fraction of the 7600kvm2 land, but to state that any bulk sample is essentially meaningless as per @teevee in the context of people finding nuggets all over the place is ridiculous. Every trend needs a starting point. This has been the first of many, and it is encouraging to say the least.”

      “Teevee ‘s negative bias was already painfully obvious after his “any thoughts on how large the $NVO gap to the downside will be? ” comment earlier (BEFORE any news was even out)… Zero credibility. Either he is bitter and/or short, and obviously not objective in the slightest.”

  4. On August 8, 2017 at 1:21 pm,
    Bonzo Barzini says:

    87 grams/ton sounds good to me. Hope Doc got back in yesterday.

  5. On August 8, 2017 at 1:33 pm,
    OOTB Jerry says:

    Gold has round trip for the day………..1260……

  6. On August 8, 2017 at 3:07 pm,
    Bonzo Barzini says:

    I had a nice ride on Bema Gold when they went from under $2 to over 9 when they found Cerro Cassale, and I had a good ride on Dia-Met and Aber Diamond too, but I’m more excited about NSRPF than any of them, and I’m hanging on even though it looks overbought.

  7. On August 8, 2017 at 3:08 pm,
    Bonzo Barzini says:

    Of course if Bob, Cory, and Big Al join Doc and sell out of Novo I’ll sell too.

  8. On August 9, 2017 at 3:41 am,
    Rick says:

    So-called experts keep knocking the discovery on the back of ‘Paleoplacer’. All they can do in their minds is try rationalizing what they know about Paleoplacer and equate that to Novo’s find. What they don’t comprehend yet is this isn’t normal Paleo from a rock source, where you would be expected to find inconsistences. This was precipitated out and deposited somewhat consistently like shells on a beach. Therefore, I would expect symmetry and consistency to a large degree along the entire length of the reef. Of course when you’re walking the beach, there are some areas with more shells than others because of wave action.

  9. On August 9, 2017 at 4:28 am,
    Dan Paloyan says:

    I am a shareholder, and so far so very good. Is there any chance that Artemis balks on the deal for a higher %, etc. ? Just a question that comes to mind, since it sounds like the deal is not quite done.

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