corporate presentation diggers & dealers, 2018 · corporate presentation – diggers &...
TRANSCRIPT
This document is for information purposes only and is not an offer to sell, nor a solicitation of an offer
to purchase, any securities. It does not purport to contain all of the information that a prospective
investor may require and it is not intended to provide any legal, tax or investment advice.
August 8, 2018 Discovering a New Goldfield in Australia
Corporate Presentation – Diggers & Dealers, 2018
TSX-V: NVO / OTCQX: NSRPF
TSX-V : NVO|OTCQX: NSRPF
Some statements in this presentation contain forward-looking information (within the meaning of Canadian securities
legislation), including without limitation statements as to the potential, through further drilling, to expand and upgrade to the
indicated category the inferred resources described in this presentation, and that a preliminary economic assessment will
be undertaken later this year. These statements address future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by the statements. Such
factors include, without limitation, the ability to complete the drilling programs and other exploration activities as currently
contemplated, the receipt of successful results as drilling proceeds, customary risks of the mineral resources exploration
industry as well as Novo Resources Corp. (“Novo” or the “Company”) having sufficient cash to fund the planned drilling and
other activities, as well as other risks and factors mentioned in the continuous disclosure filings of Novo which can be found
under its profile on the SEDAR website (www.sedar.com).
Shareholders and prospective investors are therefore cautioned not to place undue reliance on forward-looking information.
Novo undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of
new information, future events or other such factors which affect this information, except as required by law.
Dr. Quinton Hennigh, the Company’s Chairman, President and Director and a Qualified Person as defined by National
Instrument 43-101, has approved the technical contents of this presentation.
This presentation uses the term "inferred resources." We advise U.S. investors that while this term is recognized and
required by Canadian regulations, it is not recognized by the U.S. Securities and Exchange Commission. "Inferred
resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimates of "inferred mineral resources" may not form the basis of a feasibility study or
prefeasibility studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or
is economically or legally mineable.
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Shares Outstanding (Basic)
• 160.6M
Market Cap (Basic)
• C$687M (based on August 3, 2018 closing price of C$4.28)
Options Outstanding
• 12.4 M (avg. exercise price of C$3.13)
Warrants Outstanding
• 29.4 M (avg. exercise price of C$3.34)1
Shares Outstanding (Fully Diluted)
• 202.4 M
Balance Sheet • ~C$64 M cash, no debt
(1) Includes 900 K warrants exercisable at C$1.25 until August 2018, 14.5 M warrants exercisable at C$0.90 until May 2019, and 14M warrants exercisable at C$6.00 until September 2020
Ownership
Free Float, 50.1%
Management/Directors, 11.6%
Creasy, 6.9%
Kirkland Lake, 18.6%
Newmont Mining, 3.7%
Institutional, 9.1%
TSX-V : NVO|OTCQX: NSRPF
Job Creation • 45 full-time employees between
Perth, Karratha, and Nullagine
Capital • AUD $15.4M exploration budget
through June 30-19
Taxes • AUD $3M+ paid since entering
WA in 2011
Social Investments
• Local community engagement and patronage
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Dr. Quinton Hennigh (Chairman, President
& Director)
•Economic geologist with more than 20 years of exploration experience with major gold mining firms including Homestake Mining, Newcrest Mining and Newmont Mining
•Currently director and technical advisor to Irving Resources Inc, Precipitate Gold Corp, TriStar Gold Inc. and NV Gold Corp. •Ph.D. in Geology/Geochemistry from the Colorado School of Mines
Rob Humphryson (CEO & Director)
•Mining engineer with 25 years of experience •17 year career at Macmahon Underground (formerly National Mine Management) culminated in executive operational and business development leadership roles within the group •Formerly Business Development Manager at Swick Mining Services and COO of Silver Lake Resources •AusIMM member
Eric Sprott (Director)
•One of the world’s premiere gold and silver investors
•Founder of Sprott Securities (now Cormark Securities Inc.) and Sprott Asset Management LP
•Currently Chairman of Kirkland Lake Gold Ltd.
Greg Gibson (Director)
•More than 30 years’ experience in the mining industry as a miner, mine manager, director, CEO and President •Focused on gold and copper mining primarily in Canada, US, and Australia
•Currently Chairman and Interim CEO of Metanor Resources Inc. as well as a director of Ascot Resources Ltd., Sprott Mining Inc., Jerritt Canyon Canada, Latin American Minerals Inc. and Resource Capital Gold Corp.
Akiko Levinson (Director)
•Brings over 20 years of experience to the market, has extensive experience in mining finance and end-to-end rare earth mineral investment •President & CEO and Director of Irving Resources Inc. and former President of Gold Canyon Resources Inc.
Michael Barrett (Director)
•CPA with over 26 years of international experience, including stints with Deloitte, Rio Tinto (USA), WMC Resources, and PWC
•former CFO of Cloud Peak Energy and national lead partner for Deloitte’s risk advisory energy and resources practice in Perth
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Simon Pooley (COO)
• Geologist with over 30 years of experience • AusIMM member and a graduate of the Australian Institute of Company Directors • Former employers include Dominion Mining, Ashton Mining, and Rio Tinto
Ronan Sabo-Walsh (CFO & Corporate
Secretary)
• Over 7 years of experience in corporate finance and public company accounting, including public listings, merger transactions, and public company management
• Formerly VP, Finance of the Company (since June 2015) • Former CFO of a CSE-listed mineral exploration company
Leo Karabelas (VP of Corporate Communications)
• Over 10 years of experience in the capital markets and investor relations industry • President of Focus Communications Investor Relations Inc.
Kas De Luca (General Manager,
Exploration)
• Geologist with over 30 years’ experience in both exploration and mining, both domestic and international
• One of the founding directors to successful geological consultancy Jigsaw Geoscience Pty Ltd
• Multi-commodity experience across a variety of geological environments, with companies such as Newcrest Mining, Dundee Precious Metals, Placer Dome and KCGM
Chris O’Brien (Project Director)
• Mining Engineer with 25 years experience spread across operational and corporate roles • Last 10 years spent in project development • Previous role was Project Director with Newmont working on Tanami and Boddington
expansions
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Earth @ 3.0 billion years before present
Pilbara
Kaapvaal
Witwatersrand
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~30% of mined Au
Kaapvaal Pilbara
Karratha
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Known gold-bearing conglomerates 2010
Beatons Creek
JIT/TQ
Pilbara Craton
Karratha
Nullagine
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• Rumors of a new gold find near the town of
Karratha began to circulate in late 2016
• Recognizing the source of the gold was
conglomerates belonging to the Fortescue
Group, the unit that hosts gold at Beatons
Creek, and the potential for widespread
mineralization, Novo began aggressively
staking downdip extensions of favourable
conglomerate horizons
2 mm
2 cm 0.5 cm
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• Novo staked exploration applications
covering approximately 7,000 sq km in the
region around Karratha (green in map on next
slide), and controls approximately an
additional 2,000 sq km elsewhere in the
Pilbara region
• Novo has earned in to JV agreements with
Artemis Resources on an additional 1,256 sq
km of mineral rights (blue on map on next
slide)
• Novo has entered into an option agreement
for 100% of Welcome Exploration’s gold
rights (orange on map on next slide)
• Novo has commenced farm-in exploration
expenditure for an 80% JV interest in the
Comet Well property (pink on map on next
slide)
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Comet Well /
Purdys Reward
Karratha Gold Project
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• Topography at Karratha consists of rolling
hills (right). Gold-bearing conglomerates
occur at the base of the Fortescue Group
below basalt flows. These rocks were
previously unrecognized
• Conglomerates are interbedded with
sandstone horizons (lower right)
• Many clasts in the conglomerates are basalt
(below). Only minor vein quartz cobbles are
present, an enigma if the gold is sourced from
quartz lode deposits
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• Gold is typically coarse…millimeters to
centimeters
• Grains are typically flattened resembling
watermelon seeds
• Gold is seldom attached to quartz
• Nuggets are rounded clearly indicating they
are alluvial in origin
• Nuggets often display a crenulated surface
resulting from compression and
recrystallization during burial
• Gold purity is often high, +95%, setting it
apart from lode gold from deposits occurring
in the basement which displays purities of
<95%
• In situ nuggets often display a 1-2 mm halo
of fine remobilized gold surrounding them
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Comet Well
Purdys Reward
Approximate trace of Gold
bearing Conglomerate Unit
Section Line
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• In late 2017, upon excavating
several trenches, samples of in
situ gold were collected and
studied.
• It quickly became apparent that
most gold occurs as coarse
nuggets frozen in sandy matrix
between cobbles in the
conglomerate. Other than a thin
halo of fine grained remobilized
gold particles, very little
disseminated fine grained gold is
present.
• The lack of significant
disseminated fine grained gold
was confirmed by assay of
diamond drill core. Diamond drill
core yield low gold grades
whereas bulk samples collected
from nearby trenches yield
significant coarse gold.
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Concentrate from 371 kg of conglomerate • By early 2018, Novo determined
the circa 300 kg bulk samples
collected from trenches during
the initial stages of exploration
were wholly insufficient in size.
• One or two large nuggets (see
photo of concentrate at right)
can have a profound impact on
the resulting calculated head
grade.
• Novo has determined that a
minimum bulk sample size of at
least 5 tonnes is required to
enable a more meaningful
estimate of grade.
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• At Purdy’s Reward, most gold is concentrated in a zone about 0.4 m thick near the
footwall contact. Significant gold occurs in rocks above and below the contact.
• Results from 300 kg bulk samples from Purdy’s Reward are considered to be indicative.
Minimum five tonne bulk samples are better suited to estimate grade.
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• Comet Well-Purdy’s Reward deposit is a near-shore marine placer gold deposit
• The extent of marine placer deposits can be vast, +100’s sq km
Fluvial input
Marine reworking
Shoreline along the Yukon River delta
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• Gravels are washed seaward during low stands of sea level and reworked as sea level rises.
Sea level rises and falls repetitively creating an environment in which gold is trapped and
concentrated. Nome (Alaska), the Orange River (Namibia) and the West Coast of the South
Island (NZ) are modern examples.
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• Transgressive, wave-reworked gravels host gold at Comet Well-Purdy’s Reward and
are strikingly similar to modern lag gravels on the ocean bottom at Nome where gold-
bearing deposits underlie tens of square km of the Bering Sea.
Diver pointing to a gold nugget in a transgressive lag gravel on the bottom of the Bering Sea near Nome
Gold nuggets in a fossil transgressive lag gravel at Purdy’s Reward
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• Work began at Comet Well in
mid-February and will continue
through late year.
• Like at Purdy’s Reward, Novo is
conducting scout diamond drilling
to evaluate the thickness, depth
and attitude of the targeted
conglomerate package. Up to 35
m of conglomerate has been
intersected in early holes. A
package of conglomerate unique
to Comet Well has been
encountered at the base of the
sequence.
• Trenches are being opened up to
provide access for bulk sampling.
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• After a 2 x 2 m sample site is chosen and
marked out, screening is put up to capture fly
rock generated during breaking.
• Rock breakers with chisel moils are used to
fracture rock to a depth of approximately 0.5 m.
• Broken rock is placed into wooden crates lined
with bulka bags. Five or six crates are needed
to hold one sample.
• Entire process is scrutineered by a third party.
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• In January, Novo secured access to a test
processing plant at SGS Minerals, Perth.
• One of SGS’s largest contracts. SGS has
appointed an internal team 100% dedicated
to this project.
• Numerous modifications, some planned,
some unplanned, have been made to the
circuit.
• The crushing and detecting circuits are
near targeted capacity.
• The gravity gold circuit and tailings
treatment part of the circuit is being
enhanced.
• The assay stream has recently been
streamlined.
• Assay stream expected to become steady
within a few weeks.
• Test work will be fully scrutineered and
certified providing high quality data.
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• Novo’s conglomerate gold deposits have displayed encouraging gold
grades, are near surface and shallow dipping, display lateral persistence
and are likely to be amenable to simple processing methods.
• The ability to define continuous volumes of mineralized rock, core drilling for
geology and bulk samples for assay, will be a critical pre-condition of
commencing a large-scale trial sampling exercise. Upon gaining confidence in
identifying mineralised shapes, Novo anticipates commencing bulk sampling
operations within a one year timeframe.
• Until a Mining Lease is granted, bulk tonnage PoWs are the only way to permit
excavation of large samples, these being limited to 20,000 metric tonnes. Key
elements to support an application for the granting of a Mining Lease include a
mineralisation report and a Native Title mining agreement.
• Novo’s already well-advanced environmental studies and demonstrated
environmental stewardship will aid the Company.
• Novo will require a suitable processing solution for large-scale trial sampling.
As Novo continues to improve its understanding of mineralization and
metallurgical characteristics, processing flows heets and equipment options are
being firmed up to develop an appropriate processing solution. In addition to
assessing conventional processing solutions, Novo is also preparing test work
programs using non-traditional material sorting technology.
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Known gold-bearing conglomerates today
Pilbara Craton
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FOR MORE INFORMATION CONTACT:
Telephone: 1-(416)-543-3120
E-mail: [email protected]
www.novoresources.com