By Cory
Third Party Report on Novo Resources
This report is from Red Cloud Klondike Strike. They recently visited the Novo Karratha Property in Western Australia. This report came out yesterday and Novo released news today on the first bulk sample at this property. There is a lot of optimism around Novo right now but so far everything has been falling into place for the Company.
Here is the report… Be sure to check out the bulk sample news from Novo that is posted on our site.
NVO SITE VISIT: COMET WELL HAS +10M OZ POTENTIAL; PLENTY OF WORK REMAINS TO PROVE IT
We had the opportunity of visiting Novo Resources Corp. (TSXV:NVO) Karratha Project in Western Australia. The main goal of our visit was to determine if the recent significant increase in the share price (up 240% since July 10th) was warranted and in our opinion, it was. Based on our trip, the company’s recently acquired Comet Well property (80% owned), has the potential to host more than 10 million ounces of gold. We highlight that it is very early days, and the company has a significant amount of work to prove us correct. As well, the exceptionally nuggety nature of the deposit is going to provide challenges to determine a true resource grade and the potential exists that an initial NI 43-101 compliant resource could understate grade. We highlight that our view on the project’s potential has been adjusted for these factors and does not include the additional 2km of strike on the adjacent Purdy’s Reward (option to earn 50% from Artemis Resources Ltd. – ASX:ARV). We are comfortable with this opinion because of the pervasiveness of gold nugget discoveries across the trend. Important catalysts remain on the horizon for the company, including the initial bulk sample results from Purdy’s Reward, and the start of exploration at Comet Well.
Quietly have assembled a massive land position in Western Australia. Novo has been acquiring land in Western Australia over the last several months, whether by staking, acquisition or option agreement. This land package is focused on the conglomerates both underneath and adjacent to basalt contact. The later basalts sit unconformably on top of the conglomerates and in some areas, particularly at Comet Well, where a significant amount of the conglomerates are exposed. The Karratha area is historically known for the discovery of gold nuggets and has a cottage industry of locals who find gold nuggets with metal detectors. While interesting, the hard rock source of these nuggets was previously undetermined; however, Novo believes they have located the source and has aggressively acquired land in support of this thesis.
Comet Well has +10M ounce potential. The recently completed property acquisition includes 6km of strike length of the favourably hard rock conglomerate horizon. This horizon is exposed (or is near-surface) before dipping (at approximately 10 degrees) underneath the nearby basalts for 500 to 1000m over this 6km strike length. Based on initial investigations by the company, it appears to be between 10m and 20m thick. With respect to grade, …read more
Source:: The Korelin Economics Report
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