PERTH (miningweekly.com) – The share price of TSX-listed Novo Resources was still trading well below its May highs, after the company last week reported disappointing drilling results from the first bulk sample at its Comet Well project, in the Pilbara.
While the first 7.143 t bulk sample returned grades of 10.4 g/t gold, a second 6.853 t bulk sample returned grades of only 1.5 g/t gold. The second bulk sample was collected immediately beneath the first.
Novo told shareholders on Wednesday that when compared with bulk samples collected from the Purdy’s Reward project, which yielded 10.6 g/t to 87.8 g/t gold results, the second sample from Comet Well was of notably lower grade, an indication that the basal contact was not as enriched at Comet Well, compared with that at Purdy’s Reward.
Following the release of the drilling results, Novo’s share price on the TSX plummeted from C$6.05 on Wednesday to a low of C$3.92 on Thursday. To date, the company’s share price has only marginally recovered, closing at a price of C$4.80 on Monday.
The Comet Well project is part of Novo’s larger Karratha gold project, which also includes a joint venture (JV) with ASX-listed Artemis Resources. The Artemis JV would see Novo earn a 50% interest in the Australian firm’s tenements in the region, which includes the Purdy’s Reward prospect.