Why Massive upside for Novo Resources from $2.00?

On December 20, 2018 Novo Resources put out a news release that triggered gains of as much as 40% within minutes of the open. Why so? Part of the reason, no doubt, had to do with a very strong gold bullion market. But why did a 170-tonne bulk sample grading a “mere” 1.14 grams of gold per cubic meter from the company’s alluvial deposit at Egina set the stock on fire? Bob Moriarty explained why my interview with him in the morning of December 20th why this is once again becoming an extremely exciting story. Bob ran through the economics at Egina and talked about the massive size of that target. As an alluvial target, Egina is simply the weathered portion of the conglomerate hosted target at Comet Well to the west. But based on early indications of economics, Egina alone might very well justify a moon shot share price for Novo Resources.

Bob also talked about another important bit of news put out by Novo, namely results of the mechanical sorting technology on the company’s Comet Well project to the west of Egina. With rocks ground to the right size, that technology can eliminate 99% of waste rock at the mining site and produce a concentrate sufficiently rich to ship directly to a mill. At the same time, the waste rock can be returned to the location from where it was mined moments earlier. Needless to say, the elimination of waste rock on site by use of the mechanical sorting technology would be an enormous cost saver.

Bob Moriarty noted that many mistakes were made as Dr. Hennigh and his team set out to tackle a gold deposit that is more unlike anything ever explored in human history. But alas, the assays and sorting data spelled out in the news release of December 20, 2018 resulting from hard work, trials and errors of the unconventional thinking Dr. Quinton Hennigh appear to be providing the first ever answers to how the massive gold fields of northwestern Australia can be profitably mined.

The breakthrough in this great Pilbara gold field story is not in the discovery of gold itself but rather in how it can be mined profitably. Gold was discovered there at about the same time as gold was discovered in the great Witwatersrand of South Africa. Quinton’s theory of how gold was formed at the Great Witwatersrand took him to northwestern Australia which led him to these goldfields that have been long known. Only now, thanks to the the unconventional thinking geologist Quinton Hennigh, has anyone figured out how to mine profitably this gold deposit characterized by extreme nuggets. Bob Moriarty explains why an unconventional approach to mining gold in the Pilbara basin is required and why the profit potential for this enterprise is enormous beyond anyone’s wildest dreams.

Listen to my interview with Bob Moriarty here  LISTEN



About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.