The advantage of mining a known, measured tailings deposit is that there is no mining risk. Additionally it looks like gold will be closer to $1800 by Xmas than lower. The exploration in the Dominican Republic is much more bullish in the Novus Gold website than has been announced - a 6 kilometer target (that's big). The Equador gold looks like shooting fish in a barrel.
July 27, 2011 - Novus Gold Corp. (TSX-V:NOV, ?Novus?) is pleased to announce that, further to its news release of March 2, 2011, it has entered into a formal joint venture shareholders? agreement with Australian-listed EnviroGold Limited (ASX:EVG, ?EnviroGold?) pursuant to which EnviroGold will have the option to invest up to US$10 million to acquire up to a 50% interest in Novus?s Dominican Republic subsidiary (the ?Dominican Corporation?) that holds its La Paciencia and La Yugua Properties. The funds will be invested directly into the Dominican Corporation and used for the exploration of the Properties over the next three years under the operatorship of Novus. If EnviroGold exercises its full option and acquires a 50% interest in the Dominican Corporation, it will have the right to purchase an additional 10% interest in the Dominican Corporation from Novus for US$5 million for a one year period. If EnviroGold does not exercise this option, Novus will have a similar option back.
EnviroGold has exercised its option to subscribe for an initial US$3.0 million of share capital of the Dominican Corporation, of which US$250,000 will be advanced by July 31, 2011, US$500,000 by October 31, 2011, US$750,000 by January 31, 2012 and US$1,500,000 by June 30, 2012.
Novus intends to commence an IP survey (induced polarization) prior to the commencement of drilling on the La Yagua property before the end of 2011.
The La Paciencia property (8,600 hectares) is located 10 kilometres west of the Pueblo Viejo gold deposit and is underlain by the same geology. The La Yagua property (9,900 hectares) is located 20 kilometres southwest of La Paciencia. Both concessions are approximately one hour northwest of the Dominican Republic's capital city, Santo Domingo.
The La Paciencia Property
The La Paciencia property is underlain by the same geology as the Pueblo Viejo gold deposit and its topographic expression is a large hill, the same as Pueblo Viejo. It is speculated that a higher silicic content in the local rocks is responsible for both hills. Work to date has discovered elevated gold values in soils along structural lineaments on the property.
The La Yagua Property
The La Yagua property adjoins the GlobeStar Mining Corp. property hosting the Cerro de Maimon copper-gold-silver mine. Perilya Ltd. has acquired GlobeStar for $184-million.
Exploration work to date has outlined five new high-priority gold-copper targets on the property. The most significant target is defined by high gold values in stream sediment samples along the Osama River. This target is six kilometres long and is open for expansion. The Osama River is the surface expression of a major lineament.
Work carried out in 2009 on La Yagua property (as reported in Stockwatch press releases dated Aug. 12, 2009, and Oct. 8, 2009) outlined a north-south-trending, one-kilometre-long structure represented by gossans containing copper-gold-silver mineralization. Grab sample values, from oxidized material, ranged as high as 21.33 per cent copper, 13 grams per tonne gold and 173 g/t silver. More than 50 per cent of the samples collected graded more than 1 per cent copper. Two similar parallel mineralized structures were partially exposed. Grab samples from these structures returned values of up to 2.95 per cent copper, 8.4 g/t gold and 17 g/t silver.
EVG Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
