Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Novo Resources Corp T.NVO

Alternate Symbol(s):  NSRPF

Novo Resources Corp. is engaged in evaluating, acquiring, exploring, and developing natural resource properties with a focus on gold. The Company explores and develops its prospective land package covering approximately 7,500 square kilometers in the Pilbara region of Western Australia, along with the 22 square kilometer Belltopper project in the Bendigo Tectonic Zone of Victoria, Australia. The Company operates through two segments: care & maintenance operations and exploration operations.


TSX:NVO - Post by User

Bullboard Posts
Post by wwadehammeron Nov 13, 2017 10:52am
290 Views
Post# 26950775

The Old Mill Dance

The Old Mill DanceFrom Artemis Oct 23, 2017 NR:

The Radio hill complex offers several key advantages for getting into production earlier and more cost effectively than would otherwise be possible:

          -    The site is permitted for operations;

          -    There is a permitted tailings storage facility on site;

          -    Existing infrastructure for mains power supply has been well maintained;

          -    Strong water supply from an existing bore field with proved capacity and quality;

          -    Radio Hill is only 35km from Karratha so there is no need to establish expensive camps
               and associated infrastructure for the work force.

The existing Radio Hill plant, which has a nominal capacity of 500,000 tonnes per annum, has been well maintained since it was put on care and maintenance in 2008.  it consists of a two-stage crushing plant and a tailings thickener.  A plant laboratory and fully equipped workshops have been maintained on-site.

The thing that strikes me is how inadequate Radio Hill will be if there's massive amounts of ore to be processed.  At 500,000 tons per annum, you get 1 million ounces per year if the first bulk sample results apply throughout.  Say after tax profit of $250 an ounce Canadian split two ways and you have Artemis with a profit of $125 million per year or $0.21 per share - a fantastic return of 38% on investment per year.  Artemis SP should go to $1.25 based on investors accepting a 10% per year ROI.  If DL can get to 1 million tons per annum, then Artemis SP goes to $2.50.  If Artemis processed its own ore and didn't have to split with Novo, then the projected SP based on above numbers in $5 per share.  Now imagine if the mill were expanded to 2 million tons per annum (5,479 tons per day).  Then Artemis SP potential from Radio Hill is $10.

Which raises the question, why isn't Artemis trenching and drilling its own tenaments with conglomerate outcroppings?  It seems DL is clinging to Novo for dear life with no long-range plans of his own.  Maybe it's a shortage of money at this point although in the NR he stated he had mill financing available.  DL's tweeting and releasing NRs on almost a daily basis but saying nothing about breaking away from Novo smacks of desparation to me.  I think he'll have trouble paying for half the exploration costs at Purdy's while trying to upgrade the mill.  Maybe the Sheik will help him out but at a steep price.  Things look like DL is being slowly but surely forced into some kind of arrangement with a major.


Bullboard Posts