Update on Novo
It appears that last week brought a retest of the bottom that occurred in February with gold, silver and the metals indexes all slightly lower than in February. It’s not unusual for major bottoms to do a retest about six weeks after the original bottom. The rocket higher on Friday lends credibility to that thought.
Novo is still my favorite stock and is especially cheap. I am of the opinion that there was little rational selling over the last two months, only forced selling from funds and those fools still using leverage.
Novo just completed an eight-hole core program to twin existing Reverse Circulation (RC) holes. Due to boulders in the conglomerates and the nugget effect, it’s hard for Novo to determine the correct grade of the rock.
Novo released assays of a grab sample program last Thursday and at the very bottom of the press release was a photo I think will be of long lasting historic importance. I believe it proves Quinton’s precipitation theory. This project is another Witwatersrand deposit. But bigger.
If you scroll down to the very bottom of the PR, look at the picture of the drill core.
If you go to the bottom of the page of photos from the Beaton’s Creek page, you also will find the same photo and I will include it here.
(Click on image to enlarge)
The upper left photo shows the buckshot pyrite the best. The other photos show the pyrite but the pebbles of pyrite have been cut. It’s called buckshot pyrite because, well, it looks like buckshot.
Now take a wild stab at where you find buckshot pyrite in abundance. Right. The Witwatersrand. Where you have buckshot pyrite, you will find the highest grades. Wait until the drill results come out, those holes will be red-hot right there in the buckshot pyrite.
There have always been two giant technical issues with the Pilbara projects of Novo Resources. The first would be, is this a Witwatersrand style deposit, the second, did the gold get into the conglomerates via precipitation or is it a paleoplacer? (Old Placer)
I think the issue of Wits look alike but bigger is settled. It won’t be 100% confirmed until Quinton punches a couple of holes as far out in the basin as possible but the presence of buckshot pyrite is of enormous importance. It’s another Wits.
Being of the same type as the Wits pretty much proves the Vaalbara Precipitate Gold Deposit theory. (VPGD) There hasn’t been a single placer deposit in history that showed the same grades and rock type over thousands of kilometers. This simply cannot be a paleoplacer deposit. While I love Quinton like a brother, we need to call this puppy something other than a paleoplacer because paleoplacer it ain’t.
Expect a 43-101 resource in a month or so. It won’t be as big as I had hoped because he has only drilled off about a quarter of a square kilometer but it will be significant. Novo has a lot of square kilometers.
I have no idea of the timing of getting the company onto a real exchange but like Xmas, it’s coming. This is almost certainly your last chance to pick up shares at the bargain counter. I was buying shares recently at $.55 and I kept looking over my shoulder to make sure no one realized I was stealing.
Novo is my biggest position. Novo is an advertiser. I am convinced Novo will be the Mother of All Gold Deposits. Everything I have seen in three years confirms the precipitation theory. Sooner or later everyone will get it. I am biased so do your own due diligence.