Further to my original post yesterday, I think it is fair to say that my question concerning Novo tenements has been fully answered by David Lenigas in the Alan Barry interview. Most, if not all, Novo tenements in the Western Pilbara are applications rather than granted tenements.
A summary of ARV's position is perhaps warranted as so many posts have alluded to individual specific points that were discussed despite the interviewer's unfortunate numerous pointless interjections that cut off what David Lenigas had to say. I have to admire David Lenigas' patience, he demonstrated that he is a seasoned presenter by still making the points he wanted to. The interview in my opinion also showed that David Lenigas will be no push over. Some have complained that he 'gave' 50% of Purdy's away. I would argue that when you consider ARV's past history with diversions into films, that it had minimal credibility. David Lenigas demonstrated pragmatism in getting the project off the ground as he fully understood that Novo would be in no position to get things rolling on their 100% tenements for a couple of years, by which time Purdy's would have been quietly forgotten and relegated to a back water. David Lenigas' explanation to Alan Barry, who appeared woefully uninformed on the processes in Australia, were a revelation as he quietly explained the position of the current native title holders, who are well resourced, well informed and experienced in negotiating with mining companies.
David Lenigas would not be drawn on speculating on how big the discovery might be, other than to clarify most clearly, that the conglomerate extends for 6 kms across the Purdy tenements, rather than just 1.5 kms, all of which is already in the public domain as HC posters have pointed out. He added some colour to the nature of the conglomerate at Mt Oscar Wits as being different to that at Purdy's, being closer to a Wits 1.0 structure that is associated with quartz intrusions, and therefore similar to Silica Hills, pictures of that ore are in previous ARV ASX releases.
David Lenigas interpreted yesterday's Novo statement, also released by ARV to the market here. Thickness of the conglomerate so far is between 4 and 15 meters as stated, gold mineralisation is richer towards the bottom of the sequence as stated, all of which clearly suggests that the grades from the bulk sample taken from the top of end of the sequence might be understating the overall grade richness throughout the whole conglomerate sequence. The extent of the conglomerate in the region appears to link Purdy's all the way to up to Mt Oscar Wits AND down to Munni Munni.
Finally, David Lenigas dispelled any doubt in my mind that he was not fully aware of the strength of ARV's position: specifically a fully permitted processing plant requiring minimal additional expenditure, which would not require a BFS or a dilutive capital raising, that is not included in the current JV arrangements. He appears to be genuinely pleased for Novo over their Comet Well acquisition, which bodes well for any negotiations going forward as it demonstrates an ability and a desire to do a deal on the best terms for ARV shareholders. In the mean time we can all look forward to some income from the middle of next year from the ore from Purdy's being processed.
I find it amazing that the share price dropped 3.45% today, suggesting market manipulation, which in my experience neither ASX or ASIC are willing to pursue. Novo's market capitalisation is $ 1.6 billion fully diluted, ARV's enterprise value is barely $ 100 million when you take account of cash on hand and 4 million Novo shares. In my opinion, this should be the other way around, if I were a Novo holder I would be switching out of Novo as quickly as possible into ARV.
As always this is not a recommendation just my personal opinion on the matter so please do your own research.
I hold ARV and VXR
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