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Novo Resources Corp T.NVO

Alternate Symbol(s):  NSRPF

Novo Resources Corp. is a gold explorer focused on discovering gold projects. The Company is engaged primarily in the business of evaluating, acquiring, exploring, and developing natural resource properties with a focus on gold. It has a land package covering approximately 5,500 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. Its key project area is the Egina Gold Camp, where De Grey Mining is farming-in to form a JV at the Becher Project and surrounding tenements through exploration. The Company is also advancing gold exploration at Nunyerry North. It focuses on undertaking early-stage exploration across its Pilbara tenement portfolio. It has also formed a lithium joint venture with SQM Australia Pty Ltd (SQM) in the Pilbara, which provides shareholder exposure to battery metals. Its Belltopper Gold Project comprises the adjacent Malmsbury and Queens projects.


TSX:NVO - Post by User

Comment by GildedWillie1on Jul 11, 2023 12:24am
280 Views
Post# 35534821

RE:WG and the mill

RE:WG and the millYes at least he's honest! Really there are two choices for Novo, invest around $200-250 million to upgrade the mill with an oxidation plant to treat the sulphide ores that are the predominant gold source in the region, or hope to be able to give the mill away to a taker who will also be ok with taking over the environmental liabilities. If it was the latter option, Calidus Resources might be interested, as they bought Blue Spec off Novo two years ago and are looking at upgrading their new Worrawoona CIL plant to treat high sulphide ore. They could upgrade the Novo mill instead and save a lot of trucking distance from Blue Spec and adjacent deposits, as well as taking over the old Millenium mines that are associated with the mill that have plenty of gold once it can be profitably extracted by an oxidation plant. If Novo can offload that liability by giving it away, they may just about be worth their current market Cap.

My guess is they will try to get a shelf company with zero value to buy the mill for $1, and walk away, leaving that company to fold in a year or two, leaving the clean-up of the mines and mill to the WA government. Thats the tried and tested approach if you can find some dodgy directors to take the heat if the government decides to come after them for liabilities! 
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