After meeting its expenditure commitments, Novo Resources (TSXV: NVO) has officially claimed its 50% stake in several of Artemis Resources’ (ASX: ARV) tenements in the Western Australian Pilbara including Purdy’s Reward.
The joint venture agreement was executed in August and gave Novo the right to farm in to 38 of Artemis’ tenements or tenement applications located within 100km of Karratha.
Under the August agreement, Novo has now met its farm in commitments of spending A$2 million on exploration within two years and issuing A$21.8 million of its shares to Artemis.
“This joint venture with Novo for conglomerate gold on our extensive tenement package in the Karratha region of Western Australia is the beginning of a new and very exciting era for the company, and we look forward to working very closely with Novo as our 50:50 exploration and development partner,” Artemis executive chairman David Lenigas said.
Gold discoveries at Artemis’ Mt Oscar and Elysian deposits are not included under the Novo agreement.
Other exclusions include Artemis’ existing gold and JORC compliant reserves and resources to 18 May 2017; gold mineralisation that is not within conglomerate or paleoplacer-style ore; and minerals other than gold.
The duo will now progress the tenements on a 50:50 basis and are collaborating on establishing the key joint venture terms, which will include implementing a management committee to govern upcoming works programs and budgets.
It’s been a busy week for Artemis with reports of multiple nugget discoveries on Wednesday at its recently acquired tenements adjacent to Comet Well and Radio Hill projects.
Prospectors in the area had informed Artemis’ geologists they had “witnessed the recovery of gold nuggets from the new acquisition tenements” which encompass 302.27 square kilometres of land south of Karratha.
However, Monday saw the company’s stock slide on “disappointing” exploration news from Novo, which reported traditional drilling programs had failed to substantiate conglomerate gold deposit and grades. Due to the mineralisation’s style, Novo reported the more expensive bulk trenching exploration method would be more effective.
Investors sold out on the news, with the company’s stock dropping more than 20%.
Artemis remained steadfast producing numerous positive announcements this week including news it was kicking off its Radio Hill 500,000 tonne per annum plant upgrade, which will add a further 500,000tpa gold processing circuit for treating its Pilbara gold ore including conglomerate mineralisation.
Additionally, to fast-track bulk sampling of the conglomerate ore, Artemis has mobilised its portable 100t per hour gravity gold plant to Radio Hill.