Lower grades reported by Novo Resources Corp. (TSXV:NVO) at KX157 indicate that the basal contact at Comet Well is not as enriched as that of Purdy’s Reward
SmallCapPower | June 4, 2018: Novo Resources Corp. (TSXV:NVO) Thursday released results for the first two bulk samples from Comet Well, part of Novo’s greater Karratha Gold Project in Western Australia. While KX157, a 7.143 tonne bulk sample returned an impressive 10.4 grams per tonne gold, KX158, a 6.853 tonne bulk sample returned a modest 1.5 grams per tonne gold. Post the announcement, shares of Novo Resources fell as much as 38% intraday before closing 29% lower at $4.28. The sharp fall seems to have been led by lower than expected results from sample KX158 as well as from profit taking after a 7.0x run up in its stock price since announcing the acquisition of the Comet Well property in April 2017.
Both samples were collected from the recently-discovered gold-bearing conglomerate within a drainage 250 m southeast of the trench. Sample KX157 was collected from a 2×2 m horizontal panel from 0.3-0.8 m above the basal contact while sample KX158 was collected immediately beneath KX157 from a panel ~0.5 m thick. Lower grades at KX157 indicate that the basal contact at Comet Well is not as enriched as that of Purdy’s Reward, where bulk samples at basal contact yielded 10.6-87.8 grams per tonne gold. Additional bulk samples (KX151-KX162) collected from nearby trenches are currently under processing and results from these bulk samples will provide a thorough understanding of gold grades within the basal few meters.
Novo Resources Chairman and President Dr. Quinton Hennigh commented, “We are very encouraged by initial bulk sample results from Comet Well. Samples KX157 and KX158 are the first two +5 tonne samples collected and analyzed by our new protocols, a seminal step forward for the Company and project. We are particularly intrigued with the elevated concentration of gold in sample KX157 given its position above the basal contact and look forward to receipt of further results from additional bulk samples collected in nearby trenches. These results will give us a more complete picture of gold grade distribution from the bottom few meters of the Lower Cannonball conglomerate.”
Novo Resources is an exploration-stage company focused on gold projects in the Pilbara region of Western Australia. Since acquiring the Comet Well gold project near Karratha, Australia in April 2017, Novo Resources has aggressively staked 6,771 square km of exploration licenses southward from Comet Well covering virtually all projected down dip extensions of gold-bearing conglomerates. The addition of the Artemis’ 1,236 sq km earn-in/joint venture of land in August 2017 brought Nova’s total land package to nearly 12,000 sq km in Western Australia.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
To read our full disclosure, please click on the button below: