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Follow this link to the new NOVO drilling target map of nearly four square kilometers:
Target Map
TO VIEW MAP COPY AND PASTE URL BELOW INTO NEW BROWSER WINDOW OR CLICK LINK
http://thenewswire.ca/client_files/2013-06-05-0.pdf
Copyright (c) 2013 TheNewswire - All rights reserved.
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Looks good!
Rek
(via Thenewswire.ca)
VANCOUVER, June 6, 2013 - Novo Resources Corp. (the "Company") (CNSX: NVO; OTCQX: NSRPF) is pleased to announce it has received all required regulatory approvals for proposed step-out reverse circulation (RC) drilling at its Beatons Creek Gold Project, Western Australia. The goal of the 2013 drill program will be to aggressively expand the 421,000 troy ounce gold inferred resource (8.9 million tonnes at a grade of 1.47 grams gold per tonne) announced in the Company's press release dated May 1, 2013 and detailed in a National Instrument 43-101 technical report dated May 1, 2013...
"Last year, we quickly advanced Beatons Creek from a conceptual drill target to a 421,000 troy ounce gold inferred resource at a cost of about $6 per troy ounce," commented Dr. Quinton Hennigh, President and CEO of Novo Resources. "Our recent mapping and sampling in adjacent areas provides strong evidence that the same gold-bearing reefs underlie a much broader area at shallow depths, generally less than 100 meters. Because of this, we feel confident we can quickly expand upon this resource by aggressively drilling an array of shallow RC holes within the nearly four square kilometer target area. With about $4.6 million in the bank, we are well-positioned to advance this exciting target."
The targeted area covers nearly four square kilometers and gold-bearing conglomerate horizons (reefs) are believed to be generally shallow, within 100 meters of surface (see attached target map). The Company has over 200 new holes permitted. Drilling is expected to begin in July and the initial holes will be drilled on Novo's 100% controlled ground.
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Excellent news!
Rek
On May 1, 2013, Novo Resources up-dated the "Investor Presentation" on their home web page.
I found the following "slides" of special interest:
Slide 21 showing the area that may become the first to be mined as an open pit (the "near surface target").
Slide 22 listing the revised schedule for 2013 which appears to me to be a slowing down of the exploration process.
Given the current over-sold state of gold exploration stocks (including NOVO), such a slow-down in planned activities may be a prudent way of husbanding NOVO's finances until investor/speculator interest returns, and NOVO's stock price recovers.
rek
Economic Geologist Quinton Hennigh on Novo Resources...
T
Quinton with Daniela Cambone in Denver. Photo: Kitco
This afternoon’s conversation with Quinton arose after an email exchange with 321Gold’s Bob Moriarty yesterday. Bob said that the theory of Peak Gold might be bogus if Quinton’s Novo Resources has their way. Novo is chasing a lead in Australia currently that could be the next Witwatersrand, South Africa’s mother lode and the world’s richest gold field.
“The parallels are somewhat spooky in how close these two systems are. It’s speculated that [the Witwatersrand and Novo's ground] once formed a contiguous land mass…. It’s indeed the broken half of South Africa.”
Novo’s properties. Click to enlarge
Novo has quickly come up with a resource of over 400,000 ounces of gold, but it’s just the beginning of something that could prove to be much much larger, Quinton tells me, with less than 1 square kilometer of his 1800 km2 project having been explored to date. “The project is something akin to a coal seam, and these rocks could project outwards… My queasy gizzard is feeling better about suggesting this could underlie tens of square kilometers… It sounds absurd but this could be the beginnings of a major gold discovery.”
In the 22 minute conversation Quinton provides an overview of the company and its potential, and also an insight into the famous prospector Mark Creasy, whom Novo optioned the property from (12:30). Creasy is a legendary mining character who, while working on his own, built an empire and personal fortune by coming up with ideas, staking ground, and optioning projects to other companies. Quinton also outlines the typical Mark Creasy deal (16:00).
To learn more about Quinton, visit NovoResources.com ->
Disclaimer: The comments and opinions expressed herein reflect the personal views of Quinton Hennigh and Tommy Humphreys. Nothing in this article or audio interview should be construed as a solicitation to buy or sell any security. All investors should do their own due diligence and consult a licensed investment advisory before making any investment. We seek safe harbor.
This entry was posted in Commodities and tagged Exploration Insights, Novo Resources, Quinton Hennigh, Witwatersrand by Tommy Humphreys. Bookmark the permalink. Search
What is NOVO's current gold-in-the-ground value per share?
Including warrants and options, NOVO has 64.4 million fully diluted shares as of March 31, 2013.
On May 1, 2013, NOVO announced an inferred resource of 421,000 troy ounces gold contained in 8.9 million tonnes at a grade of 1.47 grams gold per tonne. Over 400,000 ounces in the ground divided by 64 million shares is over .00625 ounces of gold per share.
How are the costs of turning gold ore into gold metal determined?
The new "all-in sustaining cash cost" basis of producing gold is explained in a recent essay on 321gold.com: "Gold-Mining Margins 3," by Adam Hamilton,
May 03, 2013 (Copyright ©2000-2013 Zeal Research All Rights Reserved.)
Among the seven major miners that so far have divulged these figures, their "all-in sustaining cash cost" of producing an ounce of gold averaged $1,046 . Subtracting that figure from the May 3, 2013 gold price of $1,470 yields an average profit for those miners of $424 per ounce, or 40%.
Assuming NOVO eventually also would have a profit of over $400 per ounce, the net value per share of the over 400,000 ounces NOVO has discovered so far would be about about $2.50 (.00625 ounce of gold per share x $400 net profit per ounce) .
COMMENTS:
(1) Given that NOVO will be using open-pit mining and near-by new mill for processing its ore, NOVO's all-in sustaining cash cost could be much less than that of many major gold miners. Assuming NOVO's cost is less than $600 an ounce, then its current gold-in-the-ground per share value would be more than $5.40 (.00625 ounce per share x $870 net profit per ounce).
(2) Some believe the world price for gold currently is over-sold. At a gold price of, say, $2,000 an ounce and a NOVO cost per ounce of less than $600, NOVO's share value would be about $8.75 (.00625 ounce per share x $1,400 net profit per ounce).
(3) These calculations refer only to the gold NOVO has discovered so far. Assuming Quinton's theory is correct (which I do), the gold so far inferred by NOVO is but a tiny fraction of the gold potentially existing in the over 700 square miles of area available to NOVO for exploration.
REK
Comments from Bob Moriarty:
Novo on Sale
Bob Moriarty
Archives
May 2, 2013
Novo is the real thing and every drill hole has tended to prove that. I think the stock would be $1.50 a share and the warrant holders would be thrilled to exercise $8 million worth if the biggest shareholder wasn’t standing on the price of the stock.
But on to Novo’s announcement. They released a 43-101 resource on May 1st of 421,000 ounces at a grade of 1.47 g/t. The company spent about $2.5 million on the drill program of 16,000 meters of RC and 478 meters of core drilling. They drilled off about 30% of a square km. Given that they only started drilling 14 months ago; it’s a nice resource. There was a time a year or two ago that a discovery cost of $6 an ounce would double or triple the value of a stock but it won’t be tomorrow.
Novo is in the process of permitting another 200 holes. The only thing holding the company back is money. Plans are for drilling another 20,000 meters of RC.
The market is at a historic bottom and one day soon or down the road, the rest of the investors will get it. Novo would be far higher in any normal market but this isn’t a normal market. When the big shareholder stops dumping shares, it will go up. Novo has the goods and more drilling will prove it.
We are biased. Novo is my biggest share position and they are an advertiser. Do your own due diligence.
Novo Resources
NVO-C $.65 (May 01, 2013)
NSRPF OTCQX 40 million shares
Novo Resources website
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Bob Moriarty
President: 321gold
Archives
321gold Ltd