Novo Resources: Value Calculations

I decided to create a spreadsheet for myself that I could use as a reference guide and help assign possible value scenarios for Novo Resources. I have used 8 km as strike length since that is the minimum stretch that the conglomerates are believed to outcrop at Comet Well and Purdy’s Reward. I have then used 1 km of down dip extension, that might in the end prove to be too much or possibly far too limited. I went as far as 12.5 m of average thickness because the numbers are already quite “ridiculous” at  12.5m anyway. Also, I use a US$100/ounce multiplier to calculate value of the gold in the ground. Given the fact that these ounces will probably be high margin, one could probably warrant a valuation multiple of even possibly US$200-US$300. Keep in mind that these calculations are “only” for conglomerates covering a 8 km2 area and that Novo Resources has a total land package of about 7,000 km2 in the Karratha region.

Anyone can make their own adjustments to the numbers in the spread sheet below. For example let’s say that you think the thickness will be 10m on average but that it only covers 50% of the area. Then you simply use the 5m interval for  any given grade etc. Another example would be that if you believe the top half of the conglomerate will show 20gpt and the bottom 60gpt, then you simply use an average of 40gpt for any given thickness.

Note: The latest NR said the drill cores showed that the true thickness encountered was 4m-15m, and we “know” the outcropping conglomerates has had a thickness between basically nothing and 20m.

Use the scroll in the bottom to see the valuations on the right side of the spread sheet.