Novo Resources Corp. (NSRPF)

[TMLonggun]

JT (Jay Taylor): I am very excited about Novo Resources (NSRPF) and its Pilbara gold project in Australia. CEO Quinton Hennigh has begun work on a bankable feasibility study for lower grade surface material. It’s free milling gold, which should be very low cost, almost like a saprolite in the amount of effort required to win the gold from the hosting material.

Newmont Mining Corp. owns 32% of Novo, and management owns a big chunk of stock. Newmont just finished using its propriety bulk leach extractable gold (BLEG) surveying technology to outline huge masses of prospective land for finding what the company hopes will be the next Witwatersrand deposit. I expect that, before the end of this year, its resource will grow very dramatically. Novo is also going to put down a couple of deep holes this year.

TGR: You mentioned Witwatersrand. What’s the connection?

JT: The Witwatersrand Basin in South Africa has produced 1.5 billion ounces of gold, about one-third to one-half of all the gold ever produced. Quinton Hennigh, who is a geologist, believes that he has found the same kind of environment at Pilbara. If Novo were to hit what is known as the carbon leader that’s typical of the Witwatersrand, then I think this stock would be a rocket shot to the moon in no time. I was talking to Rick Rule about this recently, and Rick says if Novo really intersects that carbon leader, which is deeper down in the ancient seabed, then it will have to stop worrying about putting together a bankable feasibility study and just drill the heck out of this thing.

Quinton has studied Witwatersrand rock and has been developing this hypothesis for many years. Novo is an Australian company, so political risk is relatively limited. Pilbara has the prospects of near-term production combined with the possibility of a major discovery. Novo is very well financed, with about $14M in cash.

TGR: Some investors are put off Novo because it isn’t listed on the Toronto Stock Exchange (TSX).

JT: That doesn’t bother me, but I expect it will be listed on the TSX or another senior exchange shortly. Novo is actually very illiquid now. To give you an example, I probably have more shares of this company than I should. I wanted to sell some to buy something else I thought looked attractive. The stock was at just over $1.10/share when I went to sell. I sold 1,100 shares, and that transaction took it to just below $1/share.


http://investorplace.com/2014/09/stay-liquid-coming-gold-price-silver/5/#.VD8Ot1e0eCm