Rick Rule Novo Resources Corp NVO-X COMMENT Jul 31, 2017

They are on to a Witwatersrand basin deposit in West Australia. There is a mineable portion sitting at surface that they are trying to get going, and he has no doubt that there are millions of ounces there. What portion of that is economic, he doesn’t know. Have done a fantastic job, and the stock has come off quite a bit.

Their project is in Australia. They came up with an interesting idea which created quite a bit of interest. However, they haven’t put together the big continuous reefs that they have in south Africa. Part of the problem is that Australia has a lot more Techtronic displacement and thrusting, and the jigsaw puzzle is not sitting there nice and clean. Right now they are focusing on one of the areas they did find, to develop a small scale mine and turn it into a cash cow.

Thinks they might have something here, so he is willing to Hold. It’s a big land package. The proof in the pudding is going to be an actual drilling program. They’ve taken a few samples from trenches that has given them some incredible grade, like 60 g. Have now permitted for a drill program to do some diamond drilling, because they are looking for the big conglomerate layer. Within the conglomerate, that is where the gold is. This will be followed by some reverse circulation to sample that, and that is where we will find if something is there.

He doesn’t buy into companies that don’t have revenues or very likely revenues in the near future. He’s always worried about dilution and debt loads.