Outback`s nascent gold rush hits speed bump on drill results

Mining News Agency - Larger samples may be required to accurately reflect the gold grade, Novo saidin the statement Thursday. Analysis of a three metric-ton sample is expected to be completed in January.

“It needs to be remembered that it is still very early days and to date we have only had access to a postage stamp sized area of the total tenement package,” Rob Humphryson, Novo chief executive officer, said by email. “Novo will factually report what we observe as we learn more about this unique deposit. Some of that will be positive and some will be disappointing.”

There’s still optimism among investors. Novo is up more than fourfold this year, while Artemis, De Grey Mining and Southern Hemisphere Mining also are holding onto gains. Investors “love a big-picture speculative story – and they don’t get much bigger, or more speculative” than Pilbara gold, according to Wendt.

“It’s early days, and statistically, nothing’s really been proven or disproven, but the indications are going the wrong way,” said Matthew Keane, director of metals and mining research at Argonaut Securities, who visited the Novo-Artemis project about a month ago.