Novo Provides Exploration Update From Purdy’s Reward
Here is the latest news out of Novo Resources. The stock is getting hit hard on the back of this update. I will be reaching out to Quinton and his team for a comment but please send me any and all questions you have. I can be reached at Fleck@kereport.com. Please also feel free to shares your thoughts in the comment section below.
Click here to visit the Novo website for more information.
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VANCOUVER, British Columbia, Dec. 21, 2017 (GLOBE NEWSWIRE) — Novo Resources Corp.(“Novo” or the “Company”) (TSX-V:NVO) (OTCQX:NSRPF) is pleased to provide an update on exploration activities at Purdy’s Reward, a farm-in and joint venture Novo has with ASX-listed Artemis Resources Limited (“Artemis”) and part of Novo’s greater Karratha gold project, Western Australia. Recent events include:
- Completion of 3,294 meters of scout diamond drilling in 69 holes testing approximately 1,550 m strike along the targeted conglomerate sequence.
- Initial 3D modeling of lithologies.
- Study of in situ gold mineralization confirming Purdy’s Reward is a coarse gold system.
- Undertaking an assessment of appropriate sample size.
- Receipt of first bulk sample results including 15.7 gpt Au from a 304 kg sample of basal conglomerate from Trench 1 and 17.7 gpt Au from a 371 kg sample of basal conglomerate from Trench 2.
Scout Diamond Drilling and 3D Modeling
The 2017 diamond core drill program concluded on December 15 with a total of 3,294 meters drilled in 69 holes. Most drill holes fall within a 1,550 m long northeast-trending corridor up to 500 meters wide. In addition, a line of three step-out holes was completed approximately 300 m southeast of this corridor, the first test of continuity of strata into the basin.
Upon completion of initial lithological logging of all diamond core, a first-pass 3D computer model illustrating lithology was constructed from this data (please access this model via the following link: http://www.novoresources.com/_resources/17M12D17_Purdys_Reward_Exploration_Model.lfview; LeapFrog Viewer is necessary to view the model and can be accessed here: http://www.leapfrog3d.com/products/leapfrog-viewer/downloads).
Continuity of the conglomerate sequence appears strong within the targeted drilling corridor. With the exception of three paleo-topographic highs, areas where basement gabbro intrusive rocks form islands in the southwest part of the target area, the conglomerate sequence forms a continuous sheet-like unit at the base of the Fortescue Group. The conglomerate sequence dips at about 4-7 degrees southeast.
A northeast-trending normal fault down-drops strata southeast of the targeted drilling corridor. Three step-out holes, 17PDD065, 17DD067 and 17PDD069, drilled in this area all intercept the targeted conglomerate sequence thus confirming continuation of these rocks into the greater Fortescue Basin. Timing of faulting is uncertain. It may have been active while the basin was forming or after deposition of strata. Interestingly, some conglomerate beds intercepted in these deeper holes display increasing quartz clast content and local concentrations of detrital pyrite, a potential indication the system is evolving further from the paleo-shoreline.
Novo considers the results of the scout diamond drilling program significant for the following reasons:
- Continuity of the conglomerate sequence has been firmly established. Although paleo-islands are present, these are considered localized.
- Data indicates Purdy’s Reward is a near-shore fluvial depositional environment periodically reworked by marine processes.
- The system appears to evolve as it extends into the basin, a potential indication other favorable depositional environments may be present nearby.
In Situ Gold �” Discussion:
Over the past several weeks, Novo personnel have extracted numerous samples of in situ gold mineralization from trenches excavated at Purdy’s Reward. Each sample was washed and waste rock material was removed to expose gold particles for study. A discussion of findings is presented below:
- Virtually all gold occurs as coarse nuggets within conglomerate matrix (Figure 1). Most nuggets are rounded and flattened consistent with primary alluvial transport and deposition. All display frosty surface textures imparted by the matrix in which they occur. As mentioned in the Company’s news release dated November 24, 2017, chlorite-rich shale clasts are commonly spatially associated with gold nuggets.
- Overgrowths of chlorite, a clay mineral, surround each nugget. Chlorite appears to replace sandy matrix, and in in some cases, the gold nugget itself.
- A 1-3 mm halo of fine gold particles is observed around most nuggets and may originate from late-stage chemical remobilization of gold from the nugget.
- Occasionally, concentrated clusters of fine gold particles are observed surrounding a few ragged remnants of coarser gold. Such remnants are thought to be nuggets that have undergone significant chemical remobilization and re-precipitation as fine gold.
- Gold discussed above is not supergene. Such gold is observed in fresh rock just the same as in partially oxidized rock.
- Gold nugget purities range from approximately 87% to nearly 100% with most toward the higher end of this range. Silver and lesser copper and mercury make up impurities. Basement lode gold deposits may be a source of nuggets with purities at the low end of this range, but a source for higher purity nuggets remains elusive. Novo thinks such gold could possibly be derived from recycling of earlier gold-bearing sedimentary deposits.
Assessing Appropriate Bulk Sample Size:
Given the overwhelming indications that Purdy’s Reward is an extremely coarse gold system, Novo is undertaking a comprehensive size analysis of gold distribution in a 3-tonne sample collected from Trench 1. Independent coarse gold expert Dr. Simon Dominy is directing this work, and its completion is expected in January 2018.
Data from this analysis will help determine, going forward, the:
- appropriate sample size, and
- appropriate methods of analyzing the large samples to obtain results that can be relied upon for grade determination.
Current indications are that samples weighing 250-400 kg may be of insufficient size to accurately reflect grade. Samples weighing several tonnes may be required. On completion of this work, metallurgy sampling and assaying will be accelerated.
Early Au Results:
Novo has received Au results from Nagrom (please refer to the Company’s news release dated August 31, 2017 for a discussion of assay protocols) for three trench bulk samples (see Figures 2 and 3 for sample locations):
- Commissioning Sample 1 (“CS-001”), a 304 kg bulk sample collected from the basal conglomerate and footwall rocks in Trench 1. This sample was determined to have a calculated head grade of 15.7 gpt Au (Note, the mass of sorted concentrate generated by the Steinert sorting machine was high from this sample, 83 kgs, therefore a sub-set of 10, 1-kg samples of concentrate was analyzed to generate a weighted average concentrate grade.)
- KX083, a 371 kg bulk sample collected from the basal conglomerate and footwall rocks in Trench 2, was determined to have a calculated head grade of 17.7 gpt Au.
- KX078, a 356 kg bulk sample collected from conglomerate 40 cm above the basal contact, was determined to have a calculated head grade of 1.3 gpt Au.
A photograph of jigged concentrate extracted from KX083 is shown in Figure 4 and clearly illustrates the challenge coarse gold poses at Purdy’s Reward. A small number of coarse nuggets contain most of the mass of gold and therefore heavily influence the resulting grade. As discussed above, Novo believes larger bulk samples may be required than the 371 kgs that were collected for sample KX083. Part of Novo’s multi-pronged approach to exploring Purdy’s Reward has been a component of scout diamond drilling to assess the depth and thickness of targeted gold-bearing conglomerates (please refer to the Company’s news release dated August 31, 2017 for further details). Novo recognized early on that diamond core samples are of insufficient size to accurately assess nuggety gold mineralization at Purdy’s Reward. Therefore, Novo planned to utilize large diameter drilling to generate bulk samples for Au assay. In the Company’s news release dated November 24, 2017, Novo discussed its attempt at large diameter drilling and how it was unsuccessful at generating samples of consistent size and integrity. Novo has since shifted its efforts to bulk sampling trenches for meaningful Au assays.
In spite of being of inadequate size for meaningful gold analyses, Novo cut, sampled and submitted diamond core for multi-element and 1-kg cyanide leach analysis. Cyanide leach results from the mafic conglomerate sequence from holes 17PPD001, 17PPD003 and 17PPD004 (see Figures 2 and 3 for locations) returned anomalous level gold results (0.03 ppm Au from 0-4 m, 0.04 ppm Au from 3-6 m and 0.01 ppm Au from 12.5-15 m, respectively). No significant gold values were encountered in hole 17PPD002 which went straight into basement rocks at the top of the hole.
Novo does not consider these results surprising given the nuggety nature of gold mineralization at Purdy’s Reward. Given the small diameter of diamond drill holes (8.5 cm diameter), the odds of encountering gold nuggets is small. Notably, these four drill holes are in close proximity to bulk sample sites containing appreciable gold as discussed above. Current assay data from bulk samples and diamond core collectively demonstrate the need for large samples to assess gold grades at Purdy’s Reward (please refer to a news release dated November 24, 2017 for further details).
Quality Control and Quality Assurance:
Novo staff, under the supervision of Dr. Quinton Hennigh, Novo’s President and Chairman, collected bulk samples and drill samples discussed in this news release. Bulk samples were submitted to Nagrom Metallurgical Laboratory in Perth, Australia, where they were processed according to procedures detailed in Novo’s news release dated August 31, 2017. Diamond drill core was sawn and sampled by Novo personnel and submitted to Genalysis Laboratories, Perth, WA for multi-element and cyanide leach analysis. Preparation entailed crushing the entire sample to -2 mm, pulverizing a subsample split and subjecting a 1-kg charge to the LeachWell technique, an accelerated CN leach (6 hour leach time). Au analysis of the resulting solution is done by mass spectrometry.
Dr. Quinton Hennigh, the Company’s, President and Chairman and a Qualified Person as defined by National Instrument 43-101, 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 Novo has built up a significant land package covering approximately 12,000 sq km. 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
President and Chairman
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.
Forward-looking information
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities and the expected timing of the receipt of results. 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 the performance of services by third parties.
Photos accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/b0485aa0-7a25-464e-a4fd-62e872eeb2a3
http://www.globenewswire.com/NewsRoom/AttachmentNg/a7850c66-41bb-479b-bafe-e488b810a1e8
http://www.globenewswire.com/NewsRoom/AttachmentNg/f2ada29e-d0d4-4866-bcf1-64a2f06d1632
http://www.globenewswire.com/NewsRoom/AttachmentNg/b39035b2-c690-450d-b9fc-e08ea0472e55
Maybe Doc jumped back in this morning@2.78.
This is why I’m advocate of trimming on overbought rallies (granted I trimmed way too early)
Bonzo Barzini – I know you like MUX and Rob McEwen, as do I, and though you may dig this:
“I’ve Never Liked Standing in Line” A Dialogue with Rob McEwen
Cambridge House – Dec 13, 2017
Thanks, Excelsior. I’m wishing I had bought more MUX@1.85 recently. I’m sure Rob is on the right path. I think Quinton is too. I don’t like standing in line either.
I believe MUX is going to do very well in 2018. Most analysts are not taking into account how much they’ve grown in the last year or two with acquisition of Lexam Resources & the acquisition of the Black Fox mine from Primero.
In addition, they are toll mining the ore for the brand new Producer — Sage Gold.
MUX may raise a few eyebrows this next year, and I believe a rerating much higher is in order.
And MUX has a 20 billion pound copper deposit in Argentina worth quite a bit too.
Great point Bonzo Barzini. That is a substantial Copper project they are sitting on that isn’t being given any value at present. By 2019-2020, I believe they’ll be pretty large Mid-Tier.
Groper…………
It’s not clear why the Bushes have stepped away from Arrow Child and Family Ministry. In late 2017, Business Insider reported that six different women accused George H.W. Bush of groping them while posing for pictures. A spokesperson for the 41st President said that a wheelchair confined Bush would pat women’s rears in what was “intended to be a good-natured manner” and apologized for any unintended harm or distress that the actions might have caused.
While Sandusky was initially caught for acts of abuse that occurred on Penn State’s campus, the Grand Jury probing the case noted that he had access to hundreds of vulnerable and disadvantaged youth, using his nonprofit The Second Mile to find victims. Despite Sandusky’s use of The Second Mile for these purposes, a number of high profile celebrities sitting on the organization’s board expressed shock after the misconduct was made public. The Pittsburgh Post-Gazette noted that in 1990, President George H.W. Bush nationally recognized The Second Mile as a philanthropic “Point Of Light.”
There is more to the POINT OF LIGHT……
LITECOIN UP DAte……..
best info start at 5 min. mark………
https://www.youtube.com/watch?v=1SnuvCSsEbU&feature=youtu.be
Sure is quiet about big drop in Novo.
yup, sure is quiet.
wonder who is dumping shares.
and who knows something thats not being said.
could be just a bubble popping too.
nobody here is saying anything about buying.
Eric Sprott wants to buy during the panic. Maybe Doc and Matthew are pouncing too.
Let’s hope Bob M. wasn’t selling his Novo.
BB:
In hindsight, I have gotten the Novo story pretty right for many months. Today’s results were far better than Vits grade and about the same as Vits thickness. It certainly wasn’t anything to panic over but as I have observed, the ignorant always panic.
But my readers weren’t buying at $5 a share either.
Bob, I first bought Novo@1.50 and kept buying more all the way down to .63. and my average cost is .80 I’ve liked Quinton’s ideas and plan to hold on a long time. I wonder if Sprott bought more today?
Bob, do you think today’s result is going to be representative? Perhaps the August result was an anomaly due to surface location – i.e. torrential rain washed away soil and remaining gold nuggets became much more concentrated than the average. Is the dream of two ounce / 1m thickness resource totally dead now?
Jay Lin:
Good question about representative grade but no one knows, certainly not me. You can’t measure with accuracy systems with gold this big. But these are all bonanza grades at surface. As I said months ago it’s an unusual system and has to be explored in an unusual way.
I sold Novo Resources too early on the way up, but have considered get back involved if there was a reversion to the mean.
For now I’m just watching to see how things unfold and took a small position in Kairos Minerals for not just the Pilbara Gold rush, but because they have an interesting Lithium property very close to both Pilbara Minerals and Altura Mining, and they have a prospective Nickel property.
There sure was a wild blog today over in the Novo Resources room:
With about 50% of the vote counted in Catalonia, the pro-independence parties have a slight lead.
Turkey introduced a motion in the UN condemning the US.
So why the h*ll does the US give Turkey any more aid in the future.Given the status of US debt, why does the US give ANY aid?
The aid is used for blackmail. The u.s gives aid to it’s puppet governments. If the people of these puppet countries do not vote for these governments, then the funding form the u.s will stop, and these countries became terrorist nations. This is why governments love the Masses dependent on them. So you lower your standards and stop thinking for yourself for a small warfare check.
They are working on combining a decentralized Blackmail utilizing Blockchain and Email, and are thinking of calling it BlockMail. 😉
With 96.4% of vote counted the 3 pro-independence parties have gained the majority of votes.
(Probably more likely a redistribution of taxation power with Spain.)
Catalonians do not wish to leave the EU, just are tired of Madrid governance, sucking money out of NE Spain, and trying to stamp out their use of Catalan language.
Here comes Catexit?
Glencore loses out to Trafigura; world’s biggest zinc deal sliced in 2019
“The balance of power in the refined zinc market will shift in 2019 when Trafigura replaces Glencore as the largest offtake partner of Nyrstar.”
Archie Hunter – December 05, 2017
Ouch! That Novo plunge hurt.
Hesitation, once a stock declines like Novo the herd becomes wary and if the hesitation lasts too long, the recovery if they have the goods will be stalled; maybe for a long time as it drifts forever sideways.
Get in get out, the herd doesn’t do Due Diligence, they don’t care.
DT that is a good point. Once the herd leaves, it takes a company a while to repair the damage to sentiment, unless they pull a major rabbit out of the hat.
I’m currently reviewing companies where this has happened recently to position like GT Gold, or Northern Shield, or Comstock Mining, or Blackham Resources, or Inca Gold, or the one that looks most interesting to me (because of how much it is hated is K92 Mining). They really over-pumped this story on the front end, they didn’t have the ramp up to production expected, and many pointed to that being the reason that a major would let go of the project in the first place. It had a nuggetty issue like Pretium and Novo/Artemis, and so many were worried about continuity.
Now they’ve spent the last year doing solid exploration work, and they did hit lots of pay-dirt, but the herd had already trampled out and many disgruntled investors threw in the towel on them. (I love it when sentiment gets so washed out on an asset that has real value) 🙂
(KNT) (KNTNF) K92 DEFINES FIRST MINING PRODUCTION BLOCKS IN KORA NORTH
December 4, 2017
“The mining blocks have been defined by applying a minimum mining width of 2.5 metres and mining dilution of 0.5 metres to the above Measured and Indicated Mineral Resource in an area 150 metres along strike between the 1160 mRL and 1235 mRL levels (75 metres vertical extent). The mining blocks contain a total 124,200 tonnes @ 7.17 g/t Au, 19 g/t Ag and 1.06% Cu. See Table 2 below. This tonnage excludes approximately 8,000 tonnes which were mined as a bulk sample from the initial 4 metre x 4 metre drive on the 1185 mRL level. It is planned that the material defined in these mining blocks will be mined over the next nine months.”
http://www.k92mining.com/2017/12/k92-defines-first-mining-production-blocks-in-kora-north/
(KNT) (KNTNF) K92 Corporate Presentation – November 2017
http://www.k92mining.com/wp-content/uploads/2017/11/k92-present-nov-2017.pdf
Some good examples Ex, especially KNT as you mentioned. The wheels are spinning smoke just waiting for the mechanics grease to be sprayed on the tires. DT
I’ve been watching this one with fascination, as I got burnt on it on the way down, but exited most of the position, and now have traded a few times to recoup some of the losses. Recently I decided to average down because I’ve been watching the drill results, the new mining stopes, the planned mining & processing, and I’m honestly impressed. The reputation here just got smashed, but they look like a solid “Turn-Around” story in the making. In 2 years investors will wake up and this will be a 5-10 bagger IMO.
Here’s another company where the herd (mostly Doody sub) sold this company down to death, but it has a solid mine ramping up production and improving their cost in California of all places. I had a position in late 2015 to early 2016 during their “Golden Runway” phase as they transitioned from a developer into a producer, but sold to get into peppier names during the 2016 rally up. Fast forward a year adn 1/2 and Old Turkey holder got toasted and went down with the ship by positioning in this at the wrong time. Like investors normally do, they are selling at the bottom 🙂
This is the kind of set up where I like to start buying 😉
_________________________________________________________________________
(GQM) (GQMNF)Golden Queen Mining Co. Ltd.
Thomas M. Clay – Chairman & CEO
http://www.denvergoldforum.org/xpl17/company-webcast/GQM:CN/
(USAS) (USA)
AMERICAS SILVER CORPORATION DECLARES COMMERCIAL PRODUCTION AT THE SAN RAFAEL MINE
“We are pleased at achieving this significant milestone for the Company,” said Daren Dell, Americas Silver’s Chief Operating Officer.
“This mine will be the cornerstone of our Mexican operations and provide cash flow for further drilling and development of our Zone 120 resource, as well as future exploration on our greater land position in the Cosalá district without equity dilution. I would like to thank the entire staff of the Cosalá Operations who successfully brought the San Rafael mine into production while sustaining operations without significant interruption at the Company’s Nuestra Senora mine.”
Yahoo, Santa is on his way! DT
2018 is going to be solid year for USAS. Their costs are going down to an industry leading position, only matched by Silvercorp.
Any truth to this added advantage I read over on stockhouse
Peso carnage making headines on Zerohedge…today almost 20 pesos to $1USD. Since USA did not hedge peso exposure this peso action is going to crush costs at USA mexican opns and add profits to bottom line.
Read more at http://www.stockhouse.com/companies/bullboard/t.usa/scorpio-mining-corp?postid=27218383#1g2wIb1L76FYiMD5.99
(AR) (ARNGF) ARGONAUT GOLD FILES FEASIBILITY STUDY TECHNICAL REPORT FOR MAGINO GOLD PROJECT
December 21, 2017
http://www.argonautgold.com/news_events/news/news_release/index.php?content_id=374
NVO looks like it still has much further to fall…
http://stockcharts.com/h-sc/ui?s=NVO.V&p=D&yr=1&mn=0&dy=9&id=p60342226374&a=564740466
It does look like a nasty Head & Shoulders pattern in Novo, and we’re about to complete the fall on the right hand side. It was really overbought this summer & fall.
In the photos it looks like gold or maybe that’s fools gold judging by the markets reaction.