The Canadian self-made billionaire Eric Sprott confirmed at a conference in Perth that the gold discovery by Novo Resources, of which he owns 10% of the shares, has grown to an area of 600 x 300 kilometers.
According to Sprott, the specific flat gold nuggets in the form of watermelon seeds, have been found in many places. All these nuggets lie in, or close to, a 2.7 billion old rock layer that is only a few meters thick. These conglomerates are virtually the same age as the pebble layers where most of the gold is found in South Africa, and look geologically very similar. Almost all of the gold produced in South Africa, as well as 40% of the world gold production during the last century, comes from a layer of conglomerates of 1 meter thick. This gold system in Witwatersrand has a size of 250 x 150 kilometers. The average gold values in South Africa are 10 grams of gold per tonne of rock. These values have also been demonstrated in Australia.
According to Eric Sprott, who is also associated with Novo as a member of the Board, the company will start test mining in the course of next year, in an effort to show that this rock can be profitably mined.
After the first discovery in the summer of 2017, the price of Novo Resources, and a number of other companies with properties in the same area, rose sharply. After it became clear that it would take some time before the economic value of the gold would become apparent, the prices of these companies corrected very strongly from the end of 2017.
The Commodity Discovery Fund has invested approximately 10% of its portfolio in five companies that own most of the land in the Australian Pilbara. In addition to these conglomerates, companies such as Artemis, DeGrey and Kairos are also working on their separate discoveries in cobalt, lithium, copper and gold.