Interview with Quinton Hennigh on Feb 23rd
What does Novo Resources want to become? People who really know us know the story. They know we want to become a gold producer. Novo has tackled a very unusual style of mineralization but we want to prove that these deposits are going to make good economic mines, and we have three very promising projects, each of which has huge potential! Beatons Creek, Karratha, as well as Egina, all have extremely good potential to be very large, and hopefully very high margin, deposits.I think if I had one comment to say, that's the path we're going to take: "Novo would like to become an established Western Australian gold producer."
As far as Comet Well goes, I think right now we feel comfortable with the grades and the continuities we're seeing. I think we have a fairly decent understanding of what this deposit is. What we really need to do there is to go test mine it on a scale, maybe a few tens of thousands of tonnes, and from multiple locations alone the strike of the conglomerate.We also have to do some ore sorting tests to see if we can use that as a means of processing.
Those are the two factors if we can successfully process this material using ore sorter, and that includes capturing the gold that's in the finer material, I think we have an exceptional means of treating this unusual mineralization.Ore sorting and test mining at Comet Well are absolutely critical paths for usSecond, at Comet Well and Purdy's Reward, we anticipate doing a level of trial mining this year.
We are continuing to evaluate some of the test work around the TOMRA, for example, as a means of processing at Comet Well. I think once we get a full evaluation, and we do have a bit more data we got to get back on that, but once we have a full evaluation of that processing, we'll look at that trajectory. Bear in mind, we also are shooting for that mineralization report and working on a Native Title agreement so that we can convert a lot of that country into mining leases.
That's the trajectory for Comet Well and Purdy's Reward. Like the coarse gold is a problem from the sense of assaying but in terms of recovery, it is quite favorable. Gold is dense. One of the easiest ways to treat coarse gold is, of course, gravity recovery, and that's certainly a possibility, but one of the things we wanted to look at was a call it a somewhat portable style of processing, by using ore sorting machines.These ore sorting devices are skid mounted or they're mounted on a transportable platform. They can be moved from one location to the other. Now why is that important? Well, this is a flat deposit, so if you have something that's long, you know rather than trucking ore from one place to another over kilometers, why not mine process, right on the spot, and then move as you mine the material.
We looked at TOMRA ore sorters starting late last year (click here). We tried ore sorting early in 2017, had mixed results with the Steinert, first looked like it worked great, second rendition didn't work so well. When we went to TOMRA they showed us some reasons why they thought they could improve things dramatically and just recently we published the final data from that.
At Comet Well and Purdy's Reward, what we see in the conglomerates here are large, rounded; they appear to be water-worn nuggets of gold. The origin of that gold we still haven't put our finger on, but it's possible that that gold has been recycled from weathering of previously existing conglomerates or carbonaceous beds that no longer exist.In their present form it's alluvial gold, but it's ultimate origin is still in question. In addition, we have gold that appears to have grown in the matrix around the nuggets. This is what we call "halo gold," it's a thin halo about two or three millimeters wide around the gold nuggets, the coarse nuggets, and we believe that gold is actually a precipitated type gold, probably in response to biogenic activity.So once again I would say it's a mixture of two types of gold that have brought the system together. We have alluvial particles for sure, we have secondary gold that appears to be perhaps biogenic in nature.
The bulk samples from Comet Well that we released in May were the first two that we completed. To get these samples through the lab was a big exercise. It required several renditions of crushing and experimenting and assaying different streams. We also were battling a bit of wet weather down in Perth last year; it took a long time but we did get a pretty comprehensive set of assays out in late October that demonstrated the grade of these conglomerate horizons.What we've identified are two conglomerate horizons at Comet Well and Purdy's Reward. The lower one of which is say 2or 3 meters thick, the grades range from about a 1 to 6 grams, and it sits right on the basement, so it's basically the lowermost bed of rock in this bigger sequence.Twelve to fifteen meters above first horizon is a second horizon. We call it the Upper Cannonball conglomerate, the Upper Cannonball conglomerate is about 1 to 2 meters thick, and again the grades in that bed are in a range of 1 to 3, 4 grams, somewhere in that range. And it's very continuous along strike; we can see good continuity from one trench to the other over three-and-a-half, four kilometers right now. We feel very compelled that it's demonstrating similar continuity to the beds we see at Beatons Creek.
For those who have followed Novo Resources for the year are familiar with the challenges we had at Beatons Creek. Specifically, we had to develop sampling protocols to deal with the coarse grade, assay protocols that were unusual; it took some time to develop. But now, Beatons Creek is basically getting close to mine. Comet Well and Purdy's Reward area are going along the same trajectory as Beatons Creek. We've had to cut our teeth with different styles of bulk sampling and assaying but we've now got things under control. We are also experimenting with somewhat unconventional techniques of recovering the gold.
Novo has done test work with TOMRA, for example; this was starting in late last year in November. The results that came out are fantastic! We think there is potential to crush up the conglomerate, screen it, of course, but put it through an ore sorting machine, and actually let the ore sorter pick rock with the gold particles.
You know the downside of coarse gold is assaying. It's a real challenge, but the upside is that the metallurgy might be very favorable for us. Novo is very excited about that ore sorter possibility.
Revisiting the map, one can see that Comet Well and Purdy's Reward are really just a small component of a much larger land package. As I alluded to earlier, within the conglomerate horizons, people have found nuggets weathering out of these conglomerates over many kilometers through this region. We have a lot of greenfields work to do along strike (gold line).This is a big step for Novo. All of our tenements are currently exploration licenses. In order to advance a project towards a mining stage, we have to convert exploration licenses to mining licenses in Australia, and to do that we need a couple of things. One, we need a mineralization report, in this case we're not necessarily going to produce a resource per se, we'll demonstrate that we have a potentially economic body of rock here, through the data that we've collected that I just mentioned.Novo Resources will submit a mineralization report within the next few weeks. The other aspect that's needed is an agreement with the Aboriginal community, this would be the Ngarluma Community. The Ngarluma Community basically covers most of this project area here. We've been in negotiations with them, and developed a good relationship with the Ngarlumas, over the past year and a half.We need to strike what's called a "Native Title Agreement" that allows us rights to go mining, as well the Ngarlumas have commercial rights, such as royalty, as part of this project. But these are things that also have to be worked out for granting a mining lease.
We anticipate taking Comet Well and Purdy's Reward through a development trajectory, probably first through trial mining. In fact, we might do a certain amount of trial mining this year. That will provide us more supporting data for developing a larger scale mine. But we are definitely moving Comet Well and Purdy's Reward forward in a trajectory towards making a producing asset.The gold particles are often tenths of a gram up to multi-gram even tens of grams, and they're distributed through the conglomerate somewhat randomly. Therefore, one can't just walk up, grab a rock chip sample and expect to know through fire assay what's in this rock. We've had to do some very hard yards in terms of bulk sampling and other means to begin to evaluate the grain here.What we've shown at Comet Well and the Purdy's Reward joint venture with Artemis is that the continuity appears to be good over several kilometers. We've done a lot of core drilling for geology and stepped out into the basin. Presently, we have enough data between the core drilling, three-dimensional modeling, as well as the grade data that we have from the bulk samples, to put together a mineralization report.
At Comet Well and Purdy's Reward, we first evaluated the system, because it is a very coarse gold system, this is not your average gold deposit.
https://www.streetwisereports.com/a...n-established-gold-producer-in-australia.html
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