Novo consolidates Pilbara conglomerate gold play

Novo Resources has acquired the joint venture interests of Artemis Resources to take its own interest to 100 per cent in the Purdy’s Reward and 47K gold leases south of Karratha in WA’s East Pilbara. 

Novo said the total consideration to be paid to Artemis and Artemis’ joint venture partners for the leases is A$1 million cash and 2 million common shares in Novo Resources.

The company said the shares and cash will be distributed to Artemis for the Purdy’s Reward project and to Artemis and its JV partners for the Purdy’s Reward and 47K projects, based on their pro-rata ownership of the 47K project. Novo will also grant a one per cent smelter royalty over the 47K project to one of Artemis’ 47K JV partners. 

The two leases are located near the eastern end of Novo’s extensive North Pilbara conglomerate gold fairway and adjacent to Novo’s Comet well JV where it owns 80 per cent of the mineral rights.  Purdy’s Reward is covered by the E47/1745 exploration license and 47K is covered by exploration license E47/3443 where Novo held a 50 per cent interest prior to the transaction. 

Novo said that all other tenements in the JV will remain with Artemis who will be solely liable for keeping those tenements in good standing.

Chairman and President of Novo Resources, Dr. Quinton Hennigh said: “We are pleased to consolidate our Karratha land holdings.  This consolidation allows Novo to advance its Karratha gold project at its discretion and in tandem with our wholistic Pilbara conglomerate gold strategy. It has been a pleasure to work with Artemis over the past few years, and we wish them well with their future endeavours.”    

According to the company, a finder’s fee comprising 100,000 common shares of Novo and a cash payment of A$50,000 will be made to Battle Mountain Pty Ltd in respect of the Transaction, subject to receipt of TSX Venture Exchange approval. The shares issued to Battle Mountain will be subject to a statutory escrow period expiring four months from the date of issuance.

Novo originally acquired its 50 per cent interest in Artemis’ JV tenements back in 2017 under a farm-in deal to spend A$2m on exploration of the conglomerate-hosted gold mineralisation over a two-year period.  Novo must have liked what it found in these two key leases if this acquisition is any guide.

The TSX listed company appears to have chosen its preferred footprint in the eastern portion of its conglomerate-hosted gold exploration fairway and no doubt the retained areas will form part of Novo’s future exploration plans while it continues to work up its Egina deposit south of Port Hedland and its Beatons Creek deposit south of Marble Bar.

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