Mikrokosmos, here is another opinion on Dr Hennigh's (CEO Novo...

Mikrokosmos, here is another opinion on Dr Hennigh's (CEO Novo resources) strategy:

"Despite the long history of the Witwatersrand, it turns out we're still learning new things about the deposit. Evidenced by research published last month in the leading scientific journal Mineralium Deposita, by Professor Hartwig Frimmel of the University of Cape Town and Dr. Quinton Hennigh of exploration firm Novo Resources.

In their paper, these workers combine field observations with historic research on Witwatersrand ores. Leading to a ground-breaking conclusion: the massive gold deposits here formed because of some of the first lifeforms on Earth.

The thing is, one of the big questions about the Witwatersrand has always been: where did all the gold come from? The gold here is in "paleo-conglomerates"--meaning that it was eroded from a primary source, and redeposited in ancient stream beds and river deltas.

But no one has been able to figure out what that primary source was. Perhaps until now.

Authors Frimmel and Hennigh conclude that the source was actually ancient micro-organisms. Which developed on the bottoms and edges of rivers and streams when the first oxygen started to appear in the atmosphere.

At the time, there was a lot of gold dissolved in the planet's acidic surface water. And the newly-formed microbes were the perfect trap for this gold--causing an oxidizing reaction that made the dissolved metal turn solid, forming mats of gold along the river systems.

These mats were delicate structures, which were quickly ripped up by the currents. With all of this gold becoming re-worked into nearby stream channels, forming the massive and rich Witwatersrand deposits.

Here's the most important thing: this research provides some critical clues as to where other, similar gold deposits might be found. Specifically, the work pinpoints rocks of particular ages that are ripe for discovery--and certain types of geology that might tell us when we're getting close to the ancient "gold mats" that provided the feed for big ores.

This is well-founded and thoughtful work. The kind that forms the basis for a big discovery opportunity.

And the authors are putting it to work.

Researcher Quinton Hennigh in fact is using this science to target Witwatersrand look-alikes in another country that holds similar ancient geology: Australia. His Novo Resources is now drilling on prospects here that may have the same geologic make-up--thus providing the chance for a major new find.

And it's not just Dr. Hennigh that loves a well put-together concept like this. Gold major Newmont Mining has come on board with the search--buying one-third of Novo in 2013, to become the company's biggest shareholder.

That's the power of great targeting. We need to identify specific opportunities right from the start of a project--and then follow a well-planned strategy, in order to make a billion-dollar discovery."