Novo Resources – Answering your questions on Production Issues, Dilution, Egina Development Plans, Karratha Gold Project Exploration and Permitting, and Ore Storing

December 21, 2021

Over the past couple months we have received a lot of questions and comments regarding Novo Resources (TSX:NVO – OTCQX:NSRPF). These questions ranged from production, ore sorting, permitting, and general questions on the work plans for other assets in the Company’s portfolio that we have not heard much on recently. We accumulated all the questions and organized based on Project.


Quinton Hennigh, Non Executive Co-Chairman at Novo, and Mike Spreadbough, Executive Co-Chairman, join us to answer all of these questions.


We start with production questions for Beatons Creek, next is the Egnia project mostly discussing development plans, after that is the Karratha Gold Project including questions on permitting and ore sorting.


If you feel like we missed your questions or didn’t get a sufficient answer please email us at either or




Click here to visit the news section of the Novo website to read over all the recent news out of the Company.

    Dec 21, 2021 21:15 AM

    Wow – ask and ye shall receive!

      Dec 21, 2021 21:26 PM

      I was not worried about my investment in Novo, Quinton is top notch, you know that he understands shareholders concerns and acts appropriately. It’s always best to get your information from the source and that is what Cory and Shad have done. Not only do they do their homework but they also listen to the posters and readers on their website. That is a rare quality these days, Well Done! DT

        Dec 21, 2021 21:28 PM

        Boom! There you go…. a Novo update. 🙂

        Thanks Mike and DT. Yes, we value the input from the KER crew and I try to read over each blog a few times each day to see what folks are discussing, and because it is fun to share information, news, ideas, and insights with the family here.
        Agreed DT – rather than the endless speculation we see on many chat boards on the web, it is always best to go directly to the source and just ask the questions and let the company officers answer them head on. Quinton and Mike are straight shooters and shared as much information as they had, and were game with us asking some tough questions, but also just giving a holistic update on all the company projects. Hopefully it helps investors have a more clear understanding of how things are going across the board with NVO. Cheers!

          Dec 21, 2021 21:44 PM

          About 2/3 through the interview I found myself selling something and buying more Novo at 0.99 US a share. If it drops more I’ll probably buy more.

          Thanks to Corey and Shad for the interview.

            Dec 21, 2021 21:43 PM

            Mike in Al. We were talking Novo last weekend. I found this on Stockhouse about the carrying costs of their vast Pilbarra holdings:

            Novo has one of the largest land positions in the Pilbara…
            Arh: you may want to check the rent and required expenditure schedule, on those hectacres. They go up steeply; years 5-8+.
            Western Australia does NOT want you to sit on land. Nor will they (or the aboriginals who hold the land) permit you to simply dig up the landscape willy-nilly, going after a horizontal layer 1-2 meters thick.
            Years 1-3 rent: $136/block
            Year 1-3 required exploration expenditure: $1000/block
            Year 8+: $567/block
            Year 8+ required exploration: $3000/block

            Here’s the web link: note a block averages about 310 hectacres in Westen Australia. Novo has claimed roughly 4350 blocks (13500 sq km, 100 hectacres in a sq km, WA averages about 310 hectacres/block). As of year 8, that’s $15 million/year for the claims.

            Dec 21, 2021 21:09 PM

            blazesb: While I’m not sure where they are on the yearly scale even if they have to toss out 15 million in a year or two they will have options. By then they should know what their best parcels are and scale back the land mass or sell the claims off to others. Right now this is a risk but not like mining in Africa or Chile or …..

            Dec 21, 2021 21:09 PM

            After listening to Kaiser podcast I looked at two most recent financial statements on NVO website. The auditor expressed some concern that the company could have some problems meeting its financial obligations and carrying on with their business in its current form.

            Dec 22, 2021 22:53 AM

            It should be noted that some of the concerns John Kaiser raised on that recent podcast were not really accurate, regarding Novo needing to have a JORC resource estimate on the Karatha properties to get their permit (No, they don’t, as Quinton and Mike mentioned). He mentioned they were having permit challenges with the Australian regulators (No, they are aren’t as Quinton and Mike mentioned). What they are waiting on to file for permits are the data from the studies on the bulk sample through the ore sorters, to find out how many they plan on placing at Purdy’s Reward, Comet Well, or Egina, and after they know that they’ll submit for permits later next year to start producing from those properties possibly by 2023. Once again, most of the speculation and doom and gloom from retail investors was unfounded and ill-informed. Where they are waiting for approvals is with the heritage agreements for Egina, and they’re still optimistic there and have covered that a number of times, so that wasn’t really breaking news.
            As mentioned above, it is always better just to go to the source and ask them, rather than speculate on all kinds of scenarios based on bunk info. The next time we talk to them we’ll make sure to ask about the carrying costs of the Novo land position, and if it is going to cause them to “have problems meeting the financial obligations” or “carrying on with their business in it’s current form.” This sounds like more bunk.

          Dec 22, 2021 22:52 AM

          Ex, this is the last paragraph of auditor’s notes #2 of the consolidated financial statements for September 30, 2021 for Novo. This paragraph is what concerned me. There should be a credible explanation for why the auditors chose to include the below statements.

          The Company’s directors are confident of the Company’s ability to manage its cash flows as required.
          Notwithstanding the above, these conditions indicate a material uncertainty that may cast doubt about the
          Company’s ability to continue as a going concern and, therefore, whether it will be able to realize its assets and
          extinguish its liabilities in the normal course of business and at the amounts stated in the condensed interim
          consolidated financial statements. The condensed interim consolidated financial statements do not include any
          adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and
          classification of liabilities that might result should the Company be unable to continue as a going concern.

            Dec 22, 2021 22:24 AM

            Terry – That is a typical boilerplate “going concern” clause found in almost any mining companies disclosures, because the future is obviously not certain and they need to mention that, but I’m not going to lose any sleep over a standard disclosure.

            Dec 22, 2021 22:52 AM

            “whether it will be able to realize its assets and **extinguish its liabilities** in the normal course of business”

            Uh, WHAT liabilities? Are there any LT liabilities?

            I notice on Yahoo that they are awarded a P/E of less than 5. I would be intrigued to know where the calculations came from to recognize that number.

      Dec 21, 2021 21:15 PM

      Nice. Very Nice. Thanks for a great interview.

        Dec 22, 2021 22:38 AM

        Much appreciated Greg.

    Dec 21, 2021 21:35 PM

    Warrant experity date should be extended

    Dec 21, 2021 21:01 PM

    I sold almost everything on Monday after getting lucky with FSM and slept very well Tuesday night. Novo guys mentioned 2023 a couple of times so don’t think the needle will move much in 2022. I wish them well, the more gold gets found better for all of us.

    Dec 21, 2021 21:25 PM

    Great interview. Thanks for the update.

      Dec 22, 2021 22:39 AM

      Hey Charles. Glad you enjoyed the Novo update. We liked getting it as well. Cheers!

    Dec 21, 2021 21:05 PM

    I’m there

    Dec 21, 2021 21:25 PM

    The conventional markets appear to be getting a little volatile—-?topping.

      Dec 21, 2021 21:00 PM

      A lot more investors are seeing the perils in the conventional market place and are talking about it. But what if The Stock Market all of a sudden started to go much higher into a real glittering peak and sucked in a lot of the dissenters and then crashed. The markets can be very cruel and I wouldn’t rule out one more huge suckers rally. DT

      Dec 22, 2021 22:22 AM

      Doc, are you going to the Orange Bowl? Will Michigan beat Georgia? Are you still unjabbed?

    Dec 21, 2021 21:01 PM

    IB says URA displays bullish continuation wedge, target $32-$33.75

      Dec 22, 2021 22:44 AM

      That sounds constructive on the Uranium stocks. I’m back to about 80% positioned, and was hoping for one more bigger pullback before the next run higher to add the last 20% but if we get a bounce and continuation of the rally that has been going on since March of 2020, then I’ll sell some into that kind of a move.

    Dec 21, 2021 21:37 PM

    Is Beatons creek profitable by now?
    Couldn’t get the economic answer

      Dec 22, 2021 22:12 AM

      Hi Hubi. I asked Mike about the Beaton’s Creek economics at the 6:12 minute mark, and he expanded on the 1.8 million tonnes of throughput being up beyond PEA estimates, and noted that in the recent update the company put out on Dec 13th that the November grades were solid and that December was tracking well so far, and that this will be good for revenues and costs. He didn’t provide anymore detail than that, but has mentioned around the 6:00 min market that revenues were much improved. I guess we’ll need to wait until the 4th quarter financials come out in a few months to get metrics around the profitability.


      Here’s that update Mike referenced with Beaton’s creek production updates and future guidance:

      Mining Review Delivers Optimized Five-Year Plan

      -13 Dec 2021

    Dec 22, 2021 22:02 AM

    I’ve owned NOVO for a long time. Now much of the speculation has been taken out of the equation. They have a lot of gold scattered over miles and miles of ground. My hope is after a lot of these drill results come in, they will be able to announce some very exciting news. My feeling at this point is that their share price will gradually creep up over time. It certainly wouldn’t hurt matters if Central Banks would stop pushing the price of gold down with paper contracts that are not backed by anything but thin air. A rise in the price of gold would be a God send to not only NOVO but others as well. If anyone is able to discover something huge and very profitable, it would be Quinton.

      Dec 27, 2021 27:34 PM

      Never underestimate some peoples’ ability to burn cash on behalf of a concept.

    Dec 22, 2021 22:18 AM

    (NVO) (NSRPF) Novo Kicks Off Gold Concentrate Mechanical Sorter Trials
    Matt Birney – Tue, 21 December 2021
    “Toronto-listed conglomerate gold miner, Novo Resources has kicked off ‘Phase 2’ mechanical sorter trials of bulk samples taken from its Comet Well, Purdy’s Reward, Egina and Talga Talga gold projects in the Pilbara region of Western Australia. The sorter and its infrastructure are designed for deployment at Novo’s assortment of projects to produce gold-bearing concentrates on site in a single pass for further upgrading or downstream processing.”

    “Construction and commissioning of the sorter and its associated infrastructure was completed under Phase 1 of the venture. The Phase 2 sorter trials will be conducted adjacent to Novo’s Golden Eagle processing plant at its Nullagine gold project in the Pilbara. So far, all of the company’s mill feed at Golden Eagle has been sourced exclusively from its conglomerate gold deposit at Beatons Creek.”

    Dec 22, 2021 22:19 AM

    I have owned Novo for years and am worried that the Covid Nazis in Australia will murder the Novo employees with toxic jabs. But I am not selling. I pray that Quinton is unjabbed.