(Video) Novo Resources – Comet Wells, Beatons Creek, Production

A New Paradigm in Gold Exploration and Investing

TSX-V: NVO  OTC: NSRPF

Dr. Quinton Hennigh, the President, Director, and CEO of Novo Resources sits down with Maurice Jackson of Proven and Probable to provide shareholders exciting news regarding the flagship Beatons Creek Project!  In addition to the exciting developments at Beatons Creek, Novo Resources has added a new Project to their portfolio called Comet Wells.  Comet Wells is in close proximity hosting similar attributes to that of Beatons Creek.  Current and prospect shareholders are in for a real treat.

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TRANSCRIPT

Maurice:. Welcome to Proven and Probable. We focus on metals, mining, and more. I’m your host, Maurice Jackson. Today’s show is dedicated to speculators seeking to identify a new paradigm in gold exploration and investing. I’m speaking of Novo Resources trading on the TSX-V symbol NVO and on the OTC symbol NSRPF. Our guest is one of the most recognized and respected names in the natural resource space, known for his success as an astute geologist and his keen business acumen, joining us today is Dr. Quinton Hennigh, the President, Director, and CEO of Novo Resources.

Before we begin, allow me to convey to our listeners that Novo Resources is a sponsor of Proven and Probable and that we are proud shareholders of Novo Resources for the virtues we will convey in today’s message.

Dr. Hennigh, you have some exciting news for shareholders and prospective shareholders. Let’s begin with Beatons Creek which is currently gaining a lot of attention with speculators because of its unique attributes. Now, for the first time listener that may not be familiar with Beatons Creek, can you provide a brief narrative?

Quinton: Sure thing, Maurice. We have one of the most intriguing gold deposits in Australia. We are focused up in an area we call the Pilbara up in the Northwest corner of Australia. The gold is hosted by conglomerates. These are flat layers of rock that were laid down along an ancient coastline eons ago. The deposit is comprised of a series, maybe three or four of five reefs, we call them, that are stacked one on top of the another. There’s about a meter or two of sandstone between each reef. So we have a sequence, almost like a layered cake of rocks that we plan on developing into very low cost, hopefully very high margin gold mining operation.

The news that we have recently is that we’ve raised $15 million dollars (CAD) and closed the placement a few weeks ago. That money is going to be allocated to drilling additional resources around the Beatons Creek project. We have a current resource base of around 300,000 ounces of measured and indicated and an additional 260,000 ounces of referred resources. We think we can expand that significantly with this program.

The next step is going to be to take the project through pre-feasibility. We will take the updated resource base that we plan to announce sometime a little later this year, call it maybe August. We will then turn around and produce a pre-feasibility study based on that resource and demonstrate the economics and capital cost and such with that study.

The plan is to move Beatons Creek forward as quickly as possible towards production. We hope to be able to make a decision by the end of this year. In fact, we indeed hope to be through with most of the bankable feasibility study by the end of this year or very early next. If we remain on that track and there’s no hiccups in the gold market or any other outside effects on our path forward then we should be able to put this thing into production by late next year.

Maurice: That is quite exciting and impressive. So you’re moving from the scoping aspect to the pre-feasibility and then to the feasibility and all of this, you are looking at a very short timeframe. I know investors are delighted to hear that.

Switching gears. I understand that Novo has a new project addition to their portfolio. Please provide the name, the location, and the details.

Quinton: Sure thing, Maurice. So recently, we have acquired a new project mainly through staking. We identified this project I would say about nine months ago. It was really found through rumors, believe it or not. So there were stories about local prospectors finding large volumes of golf nuggets with metal detectors in an area that really has seen no exploration. It’s about 350 kilometers West of Beatons Creeks so it’s a long way from where we traditionally have explored. We really had no idea that the potential like this could be out there. There are no maps conglomerates in this area so it basically was off the radar.

Anyway, about nine months ago, I got wind that people were finding gold nuggets in vast volumes on the order of thousands of ounces. And the gold was originating from conglomerate beds that by in large were never before recognized.

So we did a little investigating, confirmed the source of the gold was indeed conglomerates. And then starting earlier this year, we’ve been staking very quietly and stealthily to build a very large land position. We’ve actually staked many hundreds of square kilometers at this point.

In this basin, which is similar in age believe it or not to Beatons Creek, it’s just not one that was on our radar. Now, we have staked effectively most of the down depth continuation of these outcropping conglomerates. So where the gold is popping out, the conglomerates that surfaced, those beds dip into the basin at a very shallow angle, call it three or four degrees. And they are projected to under like the area that we’ve staked. So we are very optimistic and we’re very confident that we stake most of these target area.

Now, that said, we did do a deal with a local prospector not too long ago. This was announced in April. The project name is called Comet Well. People can refer back to a news release around mid-April. And you’ll see that we struck a deal that covers a bit of ground along the edge of the basin indeed where these conglomerates are outcropping. So we have not only the entire down dipping. We do have some ground where the gold actually comes to surface or the gold breaking conglomerates actually come to surface. This allows us to tackle the exploration head on and really dig into this thing.

Now, to put this thing in perspective, like I said it’s very similar in age and the same stratigraphy we will call it as the Beatons Creek project that’s in what’s called the fortescue group. These are rocks that are about 2.7 to 2.9 billion years old and they’re very similar to deposits found in South Africa. The stratigraphy and the age is very similar to a packaged of rocks in South Africa called the Witwatersrand Basin.

In the Witwatersrand  Basin of course, it’s really the largest gold deposit on earth or gold deposit I should say on earth. There are several gold fields within the bed space and each of which has produced hundreds of millions of ounces and collectively, the Witwatersrand Basin has produced over a billion and a half ounces. That’s huge. That’s basically say, we call it a third of the world’s gold production.

We have based our exploration in the Pilbara on the hypothesis that the Pilbara Craton, that piece of pristine that we’re exploring in Australia was once connected to that piece of pristine in South Africa. This would have been many eons ago. But at one time, these things were connected. And hence, there should be similar deposits in Australia.

Now, we’ve been exploring the Beatons Creek for quite some time. We’ve developed the resource and we’re advancing the project quite quickly now. This new discovery is truly remarkable. It’s basically a gut, all the earmarks or something very, very large.

One thing that really struck our interest was doing a little historic research, we found a report that was from a drill program done by a company called CRA about 30 odd years ago. They drilled a hole nearly 65 kilometers south of Comet Well, the property that we’re working on. And they encountered a gold-bearing reef up in conglomerate horizon rigging 12 grams per ton in this real hole. So if we can kind of roll that around in your head, you can start to imagine this could potentially, potentially be a very significant new discovery.

 

Maurice: This is quite exciting. And let me ask you this if I may. So should we move forward as we are I should say, we’re moving forward with Beatons Creek, does that mean that we place more emphasis now on Comet Well versus Blue Spec because they have similar attributes. It sounds like they’re almost twin brothers in many regards.

Quinton: Yes. Look, the path forward that we are definitely dedicated to moving Beatons Creek towards production. That production will give us a cashflow that we need to sustain the company without having to go back to the market. So we are very keen on accomplishing that goal.

But the important thing about Comet Well or this new area is that it basically provides us a pipeline or another project from which we can tackle using the cashflow out of Beatons Creek. Now, we don’t have to go running in and spending huge amounts of money straight up. These tenements that we’ve staked need to go through a granting process. That process takes about a year.

So, this will be a story that unfolds. You must bear in mind, it’s a very early stage. This discovery is brand new. But it will unfold over the next year or two. And as we unfold that story, of course, Beatons Creek will advance hopefully to be a mining.

Maurice: Again, this is quite impressive. And let’s just summarize this here. For speculators, I just want – if you would just convey one more time, what is the next unanswered question from Novo and then when should we expect an answer? And once we have this answer, what determines success?

Quinton: OK. Well, we have several things that are moving forward that will provide immediate answers. For instance, our trench sampling and our drilling, that will be the shortest term, we’ll call it, news to look for. The results from the trenching and drilling, we feel confident they should come in line with previous work that has been on the property of Beatons Creek.

If so, people should expect that we can readily expand our resource base. So that’s the first question if you will that needs to be answered. And really, that’s the work we’re doing. The drilling and trenching will answer that question.

The next point, pivotal point for us would be the pre-feasibility study, again that’s coming out later this year after the resource upgrade. And that pre-feasibility study will establish the underlying economics of the property as well as the capital cost to put it into production. So that’s a critical step for us. When we have those answers, we can then decide on how to move the project forward to production, the finance, and things like that. So that’s kind of step-by-step questions and we’ll call it, answers that we need to glean.

And also, this new – this Comet Well project, the first step is to get in and do some early stage reconnaissance with sampling and mapping of the project area. We’ve staked a very, very large piece of ground. We have no bases really. There’s nothing known about to describe. It’s kind of in the middle of nowhere. The mapping clearly is insufficient. It didn’t recognize these conglomerates.

So we’re going to go in there and do some very basic work. But given that the amount of gold people have found on the property, we’re confident that this represents a major discovery. So again, the immediate question there is what do we have? What kind of bird do we have on our hand here? Once we get out there and do a little field work, I hope to be able to tell the world we found something very new and very exciting.

Maurice: Indeed. And thank you again for summarizing that for our listeners. The last question here, what did I forget to ask?

Quinton: I don’t think you forgot to ask anything but I’m going to say one more thing about Novo and what we’re doing. Australia is a fantastic jurisdiction for mining, particularly, Western Australia where we’re located. There are numerous goldmines. The Australian dollar gold price is quite high right now. It’s nearly $1,700 per ounce. And the margins that the profitability of gold mining in Australia right now is very robust. So we happen to be in a very good location and we got a very good project at Beatons Creek that will be in production. And we got a very exciting exploration play at Comet Well that we think will add tremendous value to this company.

Maurice: Now Quinton, if somebody listening today wants to get more information on Novo Resources, please share the contact details.
Quinton: Certainly. We can be found at www.NovoResources.com. On that website, you’ll see there’s contact information at the bottom. You can contact our IR Department. And we get a lot of questions. I’m always happy to answer questions either my IR contact, Leo Karabelas, or myself answers every single email request that we get from shareholders.

Maurice: And I can vouch for that. And last but not the least, please visit our website, www.ProvenandProbable.com. You may reach us at [email protected]. Dr. Quinton Henning of Novo Resources, thank you for joining us today on Proven and Probable.

Quinton: Thank you.

 

CONTACT NOVO RESOURCES

Investor Inquiries

Leo Karabelas

Telephone: 416.543.3120

E-mail: [email protected]

Proven & Probable

Maurice Jackson

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