The Mining Play

Novo Resources Discussion (NVO/NSRPF)

Don’t be surprised if we get through the weekend and next week with Russia not taking any action against Ukraine.

Is this notion based on your chart readings? :slight_smile:

I do think they need some sort of pretext to actually commence the attack. What form will it be? If their plans to create this pretext don’t work out, then what? How will Putin save face short of an invasion at this point? Seems like any chance of concessions out of NATO are already out the window. If they wait any longer, the ground is going thaw and tanks will have trouble. Already, generally above freezing temperatures are in the forecast in the capital indefinitely.

Yes. It’s amazing what a chart can show you. :smiley:

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Funny little story. A number of years ago, my wife and I decided to walk across a bridge over a river to cross into the Ukraine to just say we have been there. The bridge was old and there was literally large holes in the road that were a free fall into the river. Apparently, nobody else actually walks this so the guards on the Ukraine side with automatic weapons were rather taken back by this behavior.(Pretty sure it is a route that is only used by smugglers in cars that bribe the guards to move their contraband.) They were further upset when my wife suddenly demanded that she wanted to use the bathroom. After nearly creating an international incident, a bathroom was provided and the guards became friendly after hearing my last name which happens to be Ukraine. We then preceded on foot into a village that looked like a relic from WW II and appeared to be nearly abandon. I felt like a target waiting for highway robbers to show up. (They didn’t.) We managed to find a small store and went inside. Our presence created quite the spectacle with the locales watching our every move. Seemed like it was well stocked with candy and alcohol but not much else. With nothing else to do, we returned the way we came but not before attempting to take a picture of the scenic river that separates the Ukraine from Romania. Out of nowhere in the middle of the bridge, a man appeared suddenly and informed us that pictures aren’t allowed and disappeared just as quickly. Not much else to tell other than I’m rooting for the Ukraine’s and wish them luck. They are going to need it.


Novo Presentation:

One can see part of the reason for the decline in recent months. They are burning through cash. They have a very large set of holdings and focus on many different projects which likely exceeds their current ability to finance without selling their equity holdings in other miners. Failure to get a positive cash flow out of their mining operation is really hurting them.

" September 30 cash: C$43,953,000
+C$7,970,000 for selling Calidus in October
November 11 cash: C$43,282,000
December 13 cash: C$39,100,000
December 31 cash: C$32.4 million
January 30 cash: C$27.6 million"


Sumitomo Converts Egina Interest to 1.36% Interest in Novo Resources

VANCOUVER, British Columbia, April 21, 2022 (GLOBE NEWSWIRE) – Novo Resources Corp. ( “Novo” or the “Company” ) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to report that Sumitomo has converted its notional interest in the Company’s Egina project in Western Australia to a 1.36% shareholding (the “ Conversion ”) pursuant to a farmin and joint venture agreement (the “ Agreement ”)1. A total of 3,382,550 common shares of the Company were issued upon the Conversion, all of which are subject to orderly sale restrictions and a twelve-month contractual hold period expiring on April 21, 2023. The Agreement was completed as a result of the Conversion.

Pursuant to the MoU, Novo and Sumitomo are discussing new exploration opportunities across Novo’s 12,500 square kilometre tenure package.

Novo intends to advance basement gold targets at the Egina project, including multiple discrete untested aeromagnetic anomalies with characteristics comparable to the “Hemi-style” gold-bearing sanukitoid intrusions being developed by De Grey Mining Ltd.3. Novo’s conglomerate gold focus remains at Comet Well and Purdy’s Reward where Novo intends to relocate its mechanical sorter in mid-2022 to test up to 20,000 tonnes of potentially mineralized material4. In addition, Novo intends to advance base metal opportunities at the Company’s recently identified Au-Cu and Ni-Cu-Co targets at the Southcourt and Andover targets near Karratha, Western Australia.

For those hanging in there on NVO I’m sure you’re aware they are flush with cash now (C$126M total - 2nd traunche settling Aug 5) after selling their NFG stake to ES. I haven’t sold any shares yet, but I did pick up a number of these cheap NVO shares in case it doesn’t turnaround by the end of the year. (Call it insurance as NVO is one of my largest holdings. Yes, tax loss selling if it doesn’t work out favorably, but I believe it will). If you haven’t seen the video linked below check out Quinton’s commentary 59’36" to 1.01’45", I think you’ll find it interesting.
(Crescat Gets Activist on Gold & Silver #73 - YouTube)
Additionally, NFGC is another of my largest holdings, and need I say most profitable positions, that covers the sale of NVO’s holdings in NFG to ES that preceeds the NVO comments starting at 57’53.

Stay invested and keep posting thoughts on your favorite holdings as this forum is important to all those with a goal of making investing profitable.

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Ask and you shall receive!

June 14, 2022


  • A feasibility study for mining of the Beatons Creek gold project (“Beatons Creek”) Fresh mineral resource (“Feasibility Study”) is underway, with completion targeted by mid-Q4 2022
  • Metallurgical and geotechnical diamond drilling programs have been completed, with assaying and metallurgical test work underway and due for completion by the end of July 2022
  • Phase one of a mineral resource definition reverse circulation (“RC”) drilling program will be completed by the end of June 2022. Results received to May 31, 2022 include significant, high- grade intercepts (> 40 gram-metres gold) of:
    • 3.5 m at 43.62 g/t gold from 47 m in GHF0526
    • 5.5 m at 16.02 g/t gold from 30 m in GHF0269
    • 1.5 m at 48.84 g/t gold from 42.5 m in GHF0500
    • 4.5 m at 15.23 g/t gold from 47.5 m in GHF0523
    • 2 m at 28.14 g/t gold from 75.5 m in GHF0200
    • 3 m at 18.5 g/t gold from 72.5 m in GHF0181
    • 3 m at 17.85 g/t gold from 39 m in GHF0014
    • 1.5 m at 31.29 g/t gold from 43.5 m in GHF0498
    • 2.5 m at 17.66 g/t gold from 41.5 m in GHF0490
    • 2.5 m at 16.16 g/t gold from 82 m in GHF0216
    • 3 m at 15.3 g/t gold from 61.5 m in GHF0554
  • Mineral resource definition drilling to date has confirmed the high-grade nature, strong continuity, and thickness of the Fresh mineralized material
  • Commencement of Phase Two mining of the Beatons Creek Fresh deposit is subject to receipt of approvals from various Western Australian regulatory departments1.
    (2022 – NOVO Resources)
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