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Novo down after mixed Pilbara gold results

The Canadian market has reacted negatively to mixed results from the first two bulk samples collected by Novo Resources (TSX: NVO) at the intriguing Pilbara conglomerate gold play in Western Australia.
Novo down after mixed Pilbara gold results Novo down after mixed Pilbara gold results Novo down after mixed Pilbara gold results Novo down after mixed Pilbara gold results Novo down after mixed Pilbara gold results

Novo is working hard coming to grips with the Pilbara gold in conglomerates story.

Michael Quinn

Novo's shares fell off a small cliff after the company reported a 7.1 tonne sample (called KX157) from the Comet Well prospect graded 10.4 grams per tonne gold, while a 6.6t sample (KX158) at the same prospect assayed 1.5gpt.

The high-grade sample came from the Cannonball conglomerate, while the low-grade came from material dug below the conglomerate in KX157 and comprised about half conglomerate and half dolertite - with Novo saying the dolerite was a rock considered barren.

Novo was optimistic about the results.

"We are very encouraged by initial bulk sample results from Comet Well," the company said.

"Samples KX157 and KX158 are the first two plus-5t samples collected and analysed by our new protocols, a seminal step forward for the company and project.

"We are particularly intrigued with the elevated concentration of gold in sample KX157 given its position above the basal contact and look forward to receipt of further results from additional bulk samples collected in nearby trenches.

"These results will give us a more complete picture of gold grade distribution from the bottom few meters of the Lower Cannonball conglomerate."

Further assaying is underway and Novo said it was also considering returning to Purdy's Reward - a 50:50 joint venture with Artemis Resources - to resample previously sampled areas that collected much smaller sample sizes.

So far as the Canadian market was concerned, the mixed results were seen as a reason to sell, with the stock immediately dropping nearly 40% before recovering slightly and closing down just under 30%.

 

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