Tag: Novo Resources

I reached out to my pal David Erfle of JuniorMinerJunky.com for his take on NOVO. David and I were just sitting down to dinner in Dawson City in July when news of the NOVO nuggets flowed into the Yukon Mining Alliance tent.  And David is just back from a site visit to the NOVO ground in the Pilbara which he writes up on his site here.Here is his note…I put in some paragraphs. —- Hey Jay,Much larger indeed, but they will probably not be able to drill it successfully. 50/50 JV partner Artemis has just been granted a 20,000 tonne excess tonnage permit for a bulk sample, so hopefully, they will just keep bulk sampling and trenching. The type of gold they are finding is perfect for just sluicing, a la the Discovery Channel reality TV show “Gold Rush”.It would be very unconventional to just begin mining it, but this is a very unconventional deposit and the drilling experiment just proved this. I have been warning my subscribers for quite awhile to take some off the table before drilling news hit the market. Hopefully, they followed my lead and sold some last month.I am not even close to being a geologist by any means, so I need to rely on Geo’s I respect for their opinions so that I can form my own. I have been calling this the “Woody Allen Project”, as the market seems to have a love/hate relationship with it. We have the “Quinton may be on to something” camp vs. the “There is no way they will ever be able to mine this alluvial deposit” camp. There are many highly respected Geo’s in both camps, so I have a hard time seeing the share price trade below C$3.50 any time soon.The market cap is much more reasonable down here and it is nice to see this correction happen sooner, rather than later. Rick Rule taught me long ago that every takeover of +$1 Billion he’s been involved in has endured at least one 50% correction along the way to being taken out and Novo is in the process of having one right now. The company has over C$70M to keep experimenting on how to mine this very unique project and Eric Sprott has continued to buy shares in the open market above C$8.00 per share this month, so he is probably buying more down here. The volume has not been terribly large during this sell-off so far, which tells me it is mostly momentum traders and some short sellers who have been selling the Friday drilling news.I have fortunately taken 1/6 of my position off the table, which nearly doubled my original investment, so I can sit back and watch what promises to be “Mr. Toad’s Wild Ride”. Yippee-Ki-Aye!!!You are more than welcome to post this.Cheers, Dave