Interview with Keith Barron

Keith Barron Interview Munich 11 November 2018

 

  1. Q: What went through your head when you set foot on Comet Well/Purdy’s Reward
    1. Keith Barron went to Purdy’s Reward not to Comet Well. Mining PR and Comet Well will be “a license to print money”.
  2. Q: Do you still believe CW will be the cheapest gold mine in the world?
    1. Yes it will still be the cheapest.
  3. Q: Are you planning to revisit the Pilbara?
    1. Yes
  4. Q: Have you been to Egina? If not, do you plan to visit Egina?
    1. Not to Egina yet. Will want to visit but KB has to find the time.
  5. Q: Are you planning to write another article?
    1. Will probably write another one.
  6. Q: You and Bob Moriarty agree that trial mining is the way forward. Why do you think that it took Novo so long to get to that conclusion, after months of extremely slow processing at SGS?
    1. Trial mining was the plan all along. Quarry license was denied. Novo will bulk mine forever. Maybe they will not produce a JORC resource ever.
  7. Q: In your article you mentioned the use of Steinert machines. Will the use of these machines allow for a direct shipping operation of the filtered mineralized ore?
    1. Novo has Steinerts and Tomras. Novo will filter the gold out of the rock. The end result of ore sorting looks like a huge pile of nuggets. These will be turned into (gold) bricks and shipped to the Perth Mint.
  8. Q: Will Beatons Creek become a real mine?
    1. Beatons Creek will become a mine. This mine will finance the exploration efforts.
  9. Q: If you were CEO and chairman of Novo, would you be working on conglomerate gold, or more convenient targets in the Pilbara?
    1. Conglomerate gold. It is a license to print money.
  10. Q: What is QH doing that you don’t understand? If anything at all?
    1. Everything QH does makes sense. KB would not do anything differently.
  11. Q: Which Pilbara companies do you like best?
    1. Novo and De Grey are worthwhile investments. Artemis is not. Radio Hill is antiquated and Novo does not need it at all.

cdfund-notes

  • Novo Resources Presentation
  • Might be comparable to Wits
  • 1/3rd of all gold mined at the Wits (think of the potential)
  • Pilbara shares geological similarities to the Wits
  • Tight share structure
  • $69m in cash
  • Newmont comes to the site regularly
  • Creasy was and still is a conglomerate believer
  • Management team has been set up for operations
  • Novo will go straight from exploration to mining
  • Green dots: Hardey formation
  • Blue dot: Mt Roe formation
  • Rio Tinto and the other iron ore miners have headquarters centered around the Karratha, but they missed this completely.
  • The Novo Purdy Reward and CW deposits have similarities to diamond deposits

Plans

  • Bulk samples
  • Putting together a resource estimate
  • Geologists are looking for more conglomerate
  • More conglomerate has been found

Video

  • Bulk sample areas are parking lot sized
  • 4 meters thick sequence with gold nuggets
  • Next week there will probably be news out
  • A layer above CW was found
  • This layer’s stratigraphy is Purdy’s Reward style
  • World exclusive video
  • Video footage with a drone
  • Parking lot sized bulk sample areas
  • Conglomerate layer dips gently down at 3-4 degrees angle
  • The layer is 4-5 meters thick
  • Novo is still doing core and diamond drilling
  • Different stratas have been identified
  • Dirt removal is done very carefully to keep the conglomerate layer below intact
  • Prospectors have dug a “zillion” holes
  • Multiple 5 tonne samples are being mined, shipped and processed
  • Drone footage showed about 10 1 tonne sample boxes

Q&A

  • If this proves to be continuous, it is a very big deposit
  • Continuous sample news in the coming months
  • At Bellary Dome George Merhi found fine gold below Mt Roe
  • There are discrete basins with a center of gravity around CW
  • 8-10m OZ gold a good possibility at CW/Purdys
  • Novo will go straight to mining
  • Novo is treating this as if it is a mine
  • Novo has a permitter on board

Takeover

  • There are multiple big shareholders
  • No worries about a simple takeover without any competition between interested parties

Mining

  • A team has been built for trial mining in Perth
  • Keith Barron visited using his own funds
  • He argues that CW will be the lowest cost gold mine in the world

 

Artemis

  • Ed started to work in the Pilbara in 2003
  • Joined Artemis in 2014
  • THe Radio Hill plant is planned to be in production by the end of 2018
  • Currently the problem is permitting
  • Artemis is still hoping for a start of production in August
  • On the 22nd of April 2017 mail was sent to Artemis
  • Artemis had discovered the gold
  • QH then sent a mail
  • Amateurs were getting 1000s of dollars in gold nuggets every weekend
  • In September 2016 the conglomerate discovery was made
  • A post of JohnathonC post was shown in the presentation
  • Mark Creasy spent 30 years trying to find the conglomerate gold
  • When Artemis staked, the ground was vacant
  • Ed would have bought more land if he had the funds and knowledge he has now
  • DeBeers found diamonds in the region
  • Latest news release with gold shows larger gold nuggets with larger crystal structure
  • WM: “Why did CSIRO get interested?”
  • Creasy did a lot of funding for CSIRO
  • CSIRO have looked at gold all over the basin
  • CSIRO will help with exploration
  • WM: “Is it a basin wide system? Is this the Wits?“
  • EM: “My personal view is that it is a huge system”
  • Northern exposure or southern exposure = gold
  • Everywhere they have looked, they have found this

Insider Ownership

Insider ownership

Novo  Percentage
Management and Insiders 11.84
Creasy Group 7.04
Kirkland Lake Gold 16.53
Newmont 3.8
Institutional 9.34
Total 48.55
DGO Percentage
Cairnglen Investments Pty Ltd 19.62
National Nominees Limited 18.53
Ginga Pty Ltd 14.96
Eduard Eshuys and related parties 11.66
Ross Hutton and related parties 5.3
Holdings by Directs and related parties 17.43
Total 87.5
Kairos Percentage
Sprott 16.4
Tyranna Resources Ltd 3.9
Top 50 Holders Minus Above 31.3
Total 51.6