Novo Release and Moriarty Commentary

Canada gold, junior mining companies

Novo Resources (V.NVO) is out with a new press release today. It is a geo’s delight but the money shot is,

“We are pleased to see strong continuity of the gold-bearing conglomerate unit at Purdy’s Reward,” commented Dr. Quinton Hennigh, President, Chairman and a director of Novo Resources Corp. “Diamond drill core is providing us our most complete picture to date of this remarkable deposit. Gold-bearing conglomerates were clearly deposited in a shallow marine setting, an environment that can potentially persist over large lateral extents. These are not erratic, localized river-lain alluvial deposits. We eagerly await ramping up our core drilling efforts and commencement of our large diameter percussion drill program.”

As I have said before, knowing Hennigh from an earlier movie, I expect him to only make statements which the data to date support.

For cheerleading you go to Bob Moriarty’s where Bob, with typical modesty, writes,

“It took the vision of Mark Creasy and Quinton Hennigh to put this deal together. And in my usual modesty I told them nine years ago that not only did the project need Mark Creasy’s land and vision, and Quinton Hennigh’s theory, it also required someone who could tell a good story. Naturally that would be me. You have to have a good story to have a gold rush.

We borrowed a couple of Mark’s geologists and headed out into the Pilbara basin in the dead of Australian winter to try to prove the theory. It was a trip. We were sleeping in tents in a campground, eating out of cans heated over an open fire drinking $1200 a bottle wine but that’s another story. We pounded on rocks. Quinton showed us where the conglomerate beds were containing gold. He even found a piece of carbon for me. At that moment I became a believer. By and large I’ve gotten it pretty right ever since.”

Diamond drilling on the Novo ground is really more for delineation than actual results. With nuggety gold the diamond core is simply too narrow to give a fair indication of what is likely below ground. However, diamond drilling should be able to answer the question of how thick the conglomerate “unit” which hosts the gold actually is. However, later this month Novo is drilling “large diameter percussion holes (17.5” diameter) will be drilled to collect bulk samples, something necessary given the nuggety nature of gold mineralization.”

The market liked today’s release with Novo trading up $.90 at time of writing. As I have pointed out before, there will be bumps along the road and it was unsurprising that NVO traded as low as $6.40 yesterday. And the bumps may get larger as the property is further explored. One 17.5 inch percussion hole which comes up empty and the shares will swoon. Traders will enjoy the swings, investors will need to balance their exposure against the downside of no exposure. But, right this instant, NVO is simply the most exciting gold story in the world.

We’ll stay tuned.

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