RE:alpha Another mediocre essay hinting at a conclusion, but not having the balls to directly state an outcome. Right or wrong, at least BM wasn't so wishy-washy with his opinion (which this author references).
After admitting to sourcing a BM blog and KEReport interview, the author goes into a diatribe which concludes with: "Novo Resources appears to need cash, which is likely why it carried out a below-the-market financing, and likely why it accepted loan terms from Sprott Lending that are punitive."
Ya think? How brilliant. Why talk about appearances? It's staring you in the face, Sherlock.
Novo are trying to locate the sweet spots (code word "Grade Control"). Remember the Concrete Nature of the Paradox?
"Question: Do you see a viable business here?
Answer: That depends on where you want to hunt for the mineralized rock slabs and the conditions of their encasement. With 50 kg of gold, there is approximately $2 million of cost leeway per field (at today’s gold prices). That’s your cost limit in this situation. So, I recommend that you go explore for the most accessible field slabs first. Extraction of the more costly fields can become Optionality plays that come into effect with increasingly higher gold prices.
Chasing grade or ounces per ton is a diversion when you are trying to recover a determined quantity of gold from an identified volume of mineralized rock. It is the final cost AND time of extracting the mineralized volume itself that defines the business potential. "
And NOW Novo are experiencing what I was talking about 2 yrs ago almost to this very day.
Instead of reading "cut and paste" tripe from an uninformed source, an investor should try and understand what this PP is attempting to achieve.
We all know that this has always been a story of "nuggety coarse gold" hosted in a hard rock matrix. Novo performed a lot of bulk sampling and trenching in the past as a result.
And now, we see that $15 to $20 million will be slated for infill drilling. Yes, drilling. How paradoxical (no pun intended).
I think it's much more adviseable to be discussing what drilling off the rock in this coarse gold environment will achieve. I strongly urge investors to think about that, as the mill churns in the background.
Reading a mediocre essay that "rambles along" on a Private Placement at below market prices, and concludes that the company appears to require urgent funding is idiotic.
And if you are having difficulty understanding and feel that this is not your cup of tea, then simply exit stage left. No big deal. There is no to comment endlessly from the sidelines with no skin in the game. It reveals personality disorders that don't interest most investors.
Tx