Novo Resources Corp T.NVO

Meaning of PEA

[HuberPeter]

30% contingency is usually used in the operative  price assessments.  therefore this pea - as novo is already a producer - is of little importance. 

Let's see if the PEA is conservative because of the conglomerate style of deposit.

Now novo has to deliver. 

peter

[TXRogers]

At this point, I agree but it is a process that is being followed as per 43-101 compliancy (which has been ill suited for Novo since the beginning) https://stockhouse.com/companies/bullboard?symbol=t.nvo&postid=32847940   The use and disclosure of a "preliminary economic assessment" (PEA), is defined in National Instrument 43-101 Standards of Disclosure for Mineral

[Dormie18]

Thanks, Tex, you're on point as usual.

[HuberPeter]

  thanks for your summary of NI 43-101 studies. I am well aware of the nature of them as I have been investing in Ressource companies for about 20 years.  @ PFS passus Ex sedar md&a I think it was a backup if the final mill approvals would be delayed.  After getting them and ramping up smoothly they decided to do without. I assess it as good sign. 2nd credit tranche

[TXRogers]

Hi Peter. My opinion (and it's only a guess) is that the PEA is being released as a TSX compliance document only, and not to attract any additional needed financing.   Since it is preliminary by definition, it takes a conservative position.  Similar to the declared Beatons Creek N43-101 compliant gold resource, which is likely conservatively stated as well. I was never really

[HuberPeter]

Thank you for your answer, much appreciated. The coincidence that PFS date by 31.03 and now a PEA is published at 31.03 looks like something is behind the scenes. however, you haven't respond to my question of the low utilization. No need to put those low 1.5mt p.a. processing rate in it. Any idea? FCF is an important figure as producer.  peter  

[TXRogers]

I believe I have responded to your question.   The utilization rate stated in the PEA is the normal design mill processing rate per annum.  It is a steady reliable rate, not the maximum rate.   Therefore the design rate is a the chosen figure in which to base a conservative PEA upon. Tx  

[HuberPeter]

Thank you.

[TXRogers]

No problem, Peter. But keep in mind, the PEA does not specifically state the anticipated processing rate of the Nullagine mill.  Investors who have been following the story have heard QH state in interviews that Novo would be processing ore at approximately 1.5 Mtpa after the commissioning bugs are worked through.  However, that is not specifically detailed in the PEA.    

[HuberPeter]

  wow, very detailed information :) peter 

[smilingmickey]

A quick look at Sedar recent postings may give a clue as to the timing of the PEA. SM