View PDF Version. Buying Novo Resources NVO. VPrevious close at C2. 82. August 6, 2017. In the beginning, life created gold Photomicrograph of filamentous gold. Every Witch Way is an American teen sitcom that premiered on Nickelodeon on January 1, 2014. It is the United States version of Nickelodeon Latin America series. Buying Novo. Buying Novo Resources NVO. VPrevious close at C2. August 6, 2. 01. 7In the beginning, life created goldPhotomicrograph of filamentous gold from Carbon Leader, Witwatersrand Deposit South Africa. Micro particles of gold are imbedded between carbon remains of blue green algae columns formed about 2. The Witwatersrand Basin sediments are responsible for a third of the worlds total productionField notes from Novo Resources Karratha Project, Western Australia. By Brent Cookhttp www. Shares Outstanding 1. Share Fully Diluted 1. Market cap C3. 24 million C4. Cash C1. 5 million in the money warrants bring in C3. Last financing May 2. C1. 5 million C0. C0. 9. 0Major shareholders Eric Sprott 9. Newmont 1. 8 million, Mark Creasy 1. Quinton Hennigh 3 million. Summary. Novo Resources has claimed or optioned over 9,0. Pilbara region of Western Australia. I spent two days August 2 and 3 touring the property and emphasize a few important points below We are in the very early stages of exploring and testing the conglomerate hosted gold mineralization, and I have to say this is one of the strangest geologic settings I have ever seen. I dont know for certain how it formed or how big it is neither does anyone else at this point. It does however appear to be some variant of a Witwatersrand style gold deposit. Outlining areas of better mineralization will take detailed mapping and sampling time, lots of it. Defining grade and tonnes to a bankable feasibility level will be extremely difficult, if not impossible. Any resource will require large diameter drilling, channeltrench sampling, and bulk test mining. The concept that viable economic mineralization occurs over tens or even hundreds of kilometers is legitimate but unproven. The conglomerate hosted gold mineralization could turn out to be a truly world class deposit, or one very large geochemical anomaly and playground for metal detectorists. We just dont have enough hard data to make a definitive assessment. Expect extreme volatility in Novos share price as positive or negative results and rumors come out. Given the potential size of the prize, we should anticipate claim jumpers, liars, scumbags, and all the snakes and sharks that greed and gold bring out. Since the July 1. C3. 24 million has been predicated on what amounts to some scattered surface samples and a really big ideathis is irrational to the extreme. Consider that we know little to nothing about grade, continuity, extent or genesis and we dont even have a feel for how to evaluate this thingcrazy. But when the skys the limit, market cap doesnt matteruntil it does. Nonetheless, the concept that Archean conglomerate hosted gold mineralization at Karratha is a Witwatersrand equivalent is legitimate. Gold is scattered across tens to hundreds of kilometers, and there is the real chance this could be a world class discovery. Hence, despite the high valuation and uncertainty, I am buying a small stake, with the expectation of lower entry prices in the futureassuming results warrant. I am overpaying for the opportunityas much for the excitement and chance to be part of what could be a remarkable discovery as for making money. We will comment on relevant news and new data as it comes in. First, a bit of backgroundFigure 1 Three year NVO share priceOn July 1. Novo announced the discovery of gold nuggets in a bulk sample extracted from Archean aged 2. Purdys Reward property near Karratha, Western Australia. The release included links to videos of local fossickers or prospectors finding gold with metal detectors. The share price jumped from C0. C1. 4. 9, and has subsequently closed as high as C3. Fig. 1. On July 1. I booked my flight to Australia, with a scheduled departure immediately after the Sprott Investment Conference in late July. Needless to say, a lot has happened to the share price during those two weeks. Several newsletter writers have recommended Novo and its President Quinton Hennigh for years. Although the July 1. NVO, I think newsletter commentary also played a big part in taking it to 3. In particular, Bob Moriarty, with his influential 3. Gold website, has commented extensively on the company, detailing the ups and downs as it explored for Witwatersrand style gold deposits in Western Australia.  Jay Taylor and the Korelin Economics Report have also been Novo backers for some time and, recently, John Kaiser Research has published some very bullish notes on the new discovery. Photos and videos of the remarkable discovery, plus chat board discussions, have also influenced prices. The presence of gold nuggets in the Purdys area only came to light in September 2. A local bloke was mustering herding cattle from a helicopter and noticed a small camouflaged camp where someone had been metal detecting and digging holes to recover the nuggets. He flew in, checked it out, and applied for a prospecting license with a local prospector. The license only allows them to work the surface to a few meters. They have recovered hundreds of ounces in large and small nuggets, Fig. Subsequently, the duo brought in a third partner and staked a couple of large exploration licenses covering the Comet Well area. Novo recently struck deals with the trio for Comet Well and Artemis Resources ARV. ASX for Purdys Reward. The Artemis ground around Purdys Reward is a joint venture whereby NVO can earn 5. A2 million over two years thereafter both parties contribute pro rata. The Comet Well deal allows NVO to earn 8. We will worry about the details later. Figure 2 Watermelon Seed and alluvial far right nuggets from Purdys. The gold is 9. 6 pure. The high purity makes it very unlikely that it came from a normal hard rock source.  Photo Exploration InsightsSome recent history. Novos President, Quinton Hennigh, has been chasing Witwatersrand style gold deposits around the globe since the mid 1. However, Gold Fields GFI. NYSE, GFI. JSE cut his funding short and Quinton ended up finishing his thesis on the world class Neves Corvo volcanogenic massive sulphide deposit in Portugal. In the mid 2. 00. Quinton joined Newmont and headed up a global search for Witwatersrand deposits that took him and his team to South Africa, Brazil, India, and Australia. That project was canned in 2. Quinton acquired prospective Witwatersrand style ground in the Pilbara of Western Australia via Novo Resources. Between 2. 01. 0 and last year, he and the company struggled with a falling market and various land and partner issues. Longtime EI readers will recall Quinton from a number of articles he contributed to your letter in 2. One final note in addition to being one of the best exploration geologists I know, Quinton is honest, sincere, and has always put shareholders firstwe want him to win. Although I have followed this story from the beginning, the stock has never been acquired by EI. Novos first conglomerate hosted gold discovery, Beatons Creek, looked marginal and difficult, and there was a battle always simmering between Novo and its neighbor Millennium Minerals MOY. ASX. Novo wanted to generate cash flow by producing gold at Beatons Creeka game plan we rarely buy into. However, all that history became irrelevant with the recognition of large tracts of gold at surface by local metal detectorists and the recognition of a gold bearing conglomerate source in the Karratha area by Novo. Some ancient history.