Good info from the 9/21/2012 Daily News section of The Northern Miner. Enjoy.

James

Hennigh's grand gold vision in Western Australia

2012-09-21

VANCOUVER —When it comes to early-stage exploration it is not unusual to
hear about big ideas and regional plays, but when Quinton Hennigh has been
focused on a theory for the better part of a decade with prolific Australian
prospector Mark Creasy, it can start the gears turning. And that's the story
with upstart explorer Novo Resources (NVO-C) and its large-scale land
package in Western Australia's Hammersley Basin.

Hennigh has a track record with major outfits like Newcrest Mining (NM-T,
NCM-A) and Newmount Mining (NMC-T, NEM-N), but his long-standing goal
has been finding a similar geological occurrence to South Africa's
Witwatersrand basin, which has produced approximately 1.6 billion oz. gold
since being discovered in 1852.

Hennigh dedicated himself to exploring basins around the world in a bid to
find similar gold-bearing, conglomerate-style mineralization to that found
in Witwatersrand, and he feels there is a possibility he has hit the bulls
eye with a discovery in Western Australia.

“It's a pretty big concept and a big project for a junior company. It is
related to some research I did a few years ago for a major miner,” Hennigh
says during a phone interview. “The research I did focused on a number of
basins, but head-and-shoulders above everything else was Hammersley, which
sides astride the Pilbara craton. It has many of the same characteristics,
including rock age and sequencing, but most importantly it has those gold
bearing conglomerates.”

The gold region Hennigh is focused on has a mining history dating back
roughly one-hundred years. Explorers recognized the gold-bearing reefs — a
term Hennigh says was coined in South Africa, but fits his discovery well —
and started up a series of smaller scale operations focused on alluvial
gravel and near-surface oxide gold occurrences that could be processed via
state-run mill batteries.

As soon as operations hit sulphide material, however; the state-run mills
were not capable of handling the processing duties, so the mines inevitably
shut down. Hennigh says the oxides have thus far run to depths of between 20
and 40 metres before transitioning into non-refractory sulphide
mineralization.

“Fast forward around sixty years and we introduce a fellow named Mark
Creasy, the best known prospector in Australia hands down,” Hennigh
explains. “When I was working for a major mining company we approached Mark.
Unfortunately at that time we did not strike a deal, but after leaving the
company I started talking with Mark myself.”

It took around six years, but Hennigh finally locked down a deal with Creasy
that saw him scoop up around 1,800 sq.km of Hammersley, and get on the path
to proving his theory correct.

“We now have two large land blocks in the region, one is called Beatons
Creek and the second project is called Marble Bar,” Hennigh points out.

Novo holds a 70% interest in Beatons Creek under separate joint-venture
agreements with Millenium Minerals (MOY-ASX) and the Creasy Group. The
property covers 20 mining leases over 560 sq.km. Millennium's package was
important due to the fact it hosted a series of outcrops that would allow
Novo to directly drill its prospective reef systems from surface with
relatively limited preliminary exploration.

Novo recently received results from a 43-hole, reverse-circulation drill
initiative Hennigh labelled a "proof-of-concept" program. The company also
ran Leachwell analyses on the samples, which are described as
"cyanide-soluble" gold tests.

"We can probably drill a significant resource in a very short time, and for
very little money,” Hennigh speculates. “I've actually been talking to the
water department in Perth about permitting a mining operation. If we can get
away from having to build a mill, the permitting for a smaller operation is
really straight forward, and could be very quick.”

Hennigh says the company was "extremely pleased" with the results of its
scout drill program at Beatons Creek, and his optimism seems well founded
when looking at grades and intercepts, which include: 16 metres averaging
4.29 grams gold per tonne from 20 metres depth in hole 11-002; 25 metres
grading 1.28 grams gold from 48 metres in hole 11-003; and 36 metres of 1.36
grams gold from 38 metres, including a higher grade cut of 1 metre averaging
19.23 grams gold in hole 11-009.

“In many intercepts we see at least one, and sometimes as many as three,
high-grade intervals, which are the higher-grade reefs that are present
within the system,” Hennigh comments. “They appear to be continuous over the
entire area. So we're hopeful we can chase that higher-grade further out
into the basin, which could potentially be an underground target at some
point. All focus for right now is to find a large area that is underlain by
this layer of conglomerate that has sufficiently high-grades for an open-pit
mine.”

Novo has tried geophysical techniques on its land package, but due to the
fact the reefs are hosted in siliciclastic rocks it has proven difficult to
get solid reads on potential zones. What has worked, however; is stream
sediment sampling, which has allowed the company to identify a bevy of
targets across the Beatons Creek and Marble Bar properties. According to
Hennigh the team continues to identify “six to eight” prospective targets
during every stream sampling campaign.

Novo is in the process of digging through data from its 70%-owned,
1,250-sq.km Marble Bar concession in a bid to establish two to three solid
targets for a drill program that should start-up in the next few months.

Novo is in such early stages it is still trading on the Canadian National
Stock Exchange, though it is hard to see the company remaining off the
Toronto Venture Exchange for very much longer. With 31 million shares
outstanding Novo was trading at 92¢ at presstime with a $29 million market
capitalization.