Novo flags antimony and gold in the Pilbara – but does it need to step back?

Novo flags antimony and gold in the Pilbara – but does it need to step back?

Jonathon Davidson

The Market Online, Australia

Novo Resources (ASX:NVO) has offered the market a taste of what could come back to it in the coming months – high grade results for gold and antimony.

That’s because the company is gearing up to tap the WA Pilbara for both high-value metals in their own right; gold because of its save haven appeal and antimony because of sustained Chinese export curbs.

But with soil readings definitely ‘trace’ by all intents of the word – antimony readings are under <15ppm and gold is only 85ppb in soil – actual drill hits will be more likely to get the market buying and selling shares.

Those soil readings are at Sherlock Crossing where drilling is set to commence in the coming weeks and months.

Elsewhere, the company’s rockchip sampling at Southeast Wyloo; the Tecihman gold prospect has passed enough red tape to allow “low-impact exploration work” but at Balla Balla recent AC drill assays effectively turned up dusters – as far as the average explorer-watcher is concerned.

If that sounds like there’s several different things going on at once, that’s because there are – and critics could suggest the company is just trying to see what sticks. That can be a problem for junior miners who might strike out at two different projects, which then leaves some boards wondering if they should just pick up a third.

I’m not saying that’s what happened with Novo, but it can happen, and then you have poorly cashed up companies desperate to just hit something decent somewhere, but with multiple projects to juggle at once and not much cash, it can be hard to bring any of them to any meaningful milestones quickly.

Which then means you need to start capital raising at a discount, and we all know the story after there. Still, junior-watchers will likely remain attentive.

Perhaps of most interest is that Northern Star Resources is Novo’s partner at the Engina JV; NST – a more resourced company with arguably a better geotech team – are currently reviewing the data ahead of future drill-runs there.

NVO last traded at 11.5cps.

Jonathon Davidson

The Market Online, Australia

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