NOVO presenting at Denver Gold Conference Link, page-109

I went thru the research paper on high nugget effect and I think QH had to back peddle his Novo message on assays because as a CP he doesn’t want to violate JORC rules.   Below are a few quotes.

From: Classification and reporting of mineral resources for high-nugget effect gold vein deposits.
“While sympathetic to the situation faced by these operators (Novo), the authors argue that it is the nature of the deposits that is the problem, not the nature of the classification/reporting codes. Indeed, it is clear that Competent Persons, (QH) diligently following the JORC Code in such situations, function exactly as they should by alerting potential investors and decision makers to the inevitable uncertainties surrounding Resource/Reserve estimates in high-nugget effect gold veins. The main principle behind prohibiting reporting of estimates less well known than Inferred Resources is that if the Competent Persons, (QH) do not have sufficient confidence in their tonnage/grade estimates to meet the fairly broad requirements of Inferred Resources. It would be improper and potentially misleading for such an estimate to be presented to the Public.... Tonnage can often be determined to a reasonable level of confidence but not grade, and it may therefore be difficult to produce bankable documents."

The JORC fine print makes it very difficult to report a Reserve or a Resource in a high nugget environment. Without these estimates neither the company, its investors or finance organizations have the data and confidence necessary to bring forward a project from discovery into production.   Any estimate by the CP such a QH can’t be published as a JORC or 43-101 resources. This is a huge hurdle for Novo in the development of the Pilbera.   One possibility which I can think of is to combine this high nugget resource with a more traditional resource which can be measured by drill results and reported under JORC requirements.   Two such possibilities within the region would be DEG and/or ARV. The high nugget resource could be blended into the feedstock with ore from a more easily qualified Resource.