BACK TO BASICS IN EXPLORATION
Novo Resources Corp. (TSX:NVO,OTCQX:NSRPF) is a Canadian listed company with gold production and exploration assets in the Pilbara region of Western Australia and near Kirkland Lake’s Fosterville mine in Victoria, Australia. Its Nullagine Gold Project has paused production awaiting the outcome of a revised Feasibility Study(misleading. The feasiblity study has been deferred so they arent awaiting anything) and mine extension approvals(prbly on hold at the request of the co.). It has a approximately 10,500 square kilometre exploration tenement under active exploration(and dropping fast oi).
KEY POINTS
Strong drilling program underway(1 or 2 drills if I recall) – At its core, Novo has strong exploration DNA with a quality exploration team(what have they found thats economic so far) backed by a supportive Board(paid to support) and a strong balance sheet(bullshiit).The company and its shareholders have endured a period of sustained negative news as the plan to generate cash from mining the Beatons Creek oxide was unsuccessful, and the conglomerate nuggets story has not advanced(amazing you admit that). The company is pivoting to an exploration focus for now which should see an end to the negative news flow and potentially the start of a period of positive news(positive thinking. What a useless comment).
The Becher target has the most company changing potential near term(the new shiny toy) - Drilling has started on the Becher target which has geology appearing to mirror that containing the 8.5Moz Hemi discovery of De Grey 30Km away(long way away oi). An initial program is underway comprising over 30,000m of air core drilling (Hemi discovery holes were also air core). Hemi is a new style of target that had not been explored for previously in this region. The results of this drilling are starting to flow into the market and appear to be very encouraging(according to nvo) without as yet a Hemi style discovery hole(oh oh). The best intersection to date is 20m at 0.67g/t gold from surface.
Awaiting assays from Karratha Drilling – The company has also been active in its Purdy’s North tenement which is sandwiched between Artemis’ Carlow Castle(peanut butter) and Azure/Creasy’s Andover discoveries(jam). Novo is drilling gold/copper and also nickel/cobalt targets. Battery metals are not the company’s focus, but given the success enjoyed by its close neighbours in recent times, it makes sense to work up the ground, even if only to on-sell to others(Mike regurge word for word). The value currently ascribed by the market to the neighbours’ discoveries is A$140M.
Nullagine Gold Project Beatons Creek Feasibility Study is currently due in March 2023 quarter(false, deferred to maybe never according to nvo nr) – Confirming the economics of the Nullagine Gold Project is the company’s lowest risk pathway to share price improvement(but you just said it was drilling at Becher). The infill drilling program at Beatons Creek is in its final stage, with a new Resource update due in November 2022 with a further update in March 2023 and potentially a maiden Reserve and feasibility study by the end of March 2023(false). Exploration drilling is ongoing in the Mosquito Creek Basin along from the company’s 1.5Mtpa Golden Eagle processing plant and has the potential to contribute additional ounces. Given the issues with mining of the oxide ore at Beatons Creek, some reduction relative to the 2021 PEA is likely( a bit late with this report oi. Resources cut in half). The size distribution of oxide gold deposits in the Mosquito Creek Basin suggests that any discovery is likely to be 10-40Koz(prove it), and there is excellent potential for a number of such discoveries(prove it). The previous owner of the Golden Eagle plant operated for over five years mining portfolios of small deposit(and lost money doing so)s. There is potential for larger discoveries in the relatively unexplored Novo sections of the Mosquito Creek Basin to the east and north, all within trucking distance of the plant.(what do you know about trucking or trucking distances?)
Applying a new model to Victorian gold exploration – At the Malmsbury joint venture, Novo has drilled what may be an Intrusion Related Gold System with the Missing Link Granite running 0.26g/t gold over 79.9m(waste). Exploring a historical Victorian gold field for Intrusion Related Gold Systems is a new concept now being pioneered by Novo(like sorting machines). However, larger scale Fosterville targets remain the overarching goal(of every mining company on the planet).
Strong balance sheet – Novo has repaid the US$40M Sprott debt and is now debt free, with C$65.3M cash on hand at 30 September 2022.(Bullshiit. Deduct liabilities and overstated asset values such as exploration assets at $144m)
And on and on but I have better things to do than rip this garbage to shreds. Like watching my toenails grow.
Suckers
Cliff