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New geological acid seas theory sees mining firm valued at half a billion dollars

Australia

Are the plains of Western Australia the gold laden brethren of South Africa’s welds? Quinton Todd Hennigh, is certainly hoping so, the president of Novo Resources Corp has seen the value of his business rocket on the back of such a theory.

Hennigh believes the Witwatersrand region of South Africa, home to one of the world’s richest gold belts, used to be connected to the Karratha and Pilbara regions of Australia. If his theory is correct there is reason to believe the record finds in Witwatersrand, which have totalled almost one-third of all the gold ever mined, could be replicated in Australia.

Hennigh himself has been coy on the prospect, telling Bloomberg “can I say 100% that this will turn into a mine right now? No, I don’t know.” That hasn’t stopped investors piling in, raising the company’s value to  over $550 million. Those parties include big-time producer Newmont and Eric Sprott, a billionaire investor in precious-metals.

Such valuation has been labelled as “absurd,” by geologist and mining stock analyst Brent Cook: “We’ve only got a concept, one small excavation, and nuggets scattered across hundreds of kilometres. It could turn out to be a bunch of nuggets that are only good for fossickers [prospectors].”

However, the theory of lost Pangean proxies is clearly of interest following the success recorded in recent test-pit, which suggested top grade gold ore when nuggets up to 4cm long were extracted from just half a metre down.

Michiel de Kock, head of the University of Johannesburg’s geology department, told Bloomberg that “pieces of the Witwatersrand basin may sit in some unexpected places,” possibly with “nearest neighbours within a larger supercontinent”.

Hennigh believes both Karratha and Withwatersrand were once cover by acidic seas which dissolved gold. Organic life then evolved, releasing oxygen into the environment meaning gold precipitated out of the water.

“It’s one of the strangest geologic settings I’ve ever seen,” says Cook referring to the layout of the land, reminiscent of a primordial seafloor. Hennigh’s theory is counter to the previous ideas that held sway in South Africa that suggest the amount of gold in Withwatersrand was the result of mountain run-off.

If Karratha is indeed Withwatersrand long lost cousin, investors will be hoping it is also endowed with 2 billion ounces of gold. If that happens the headlines will be much less theoretical. As Richard Schodde of Melbourne-based MinEx Consulting, told Bloomberg  “why argue about models when you’ve got gold as evidence”.

 

Photo: A satelitte image of Australia, credit: By Reto Stöckl / NASA Goddard Space Flight Center, Public Domain, https://commons.wikimedia.org/w/index.php?curid=13642 

Link to this article: : http://www.goldmadesimplenews.com/gold/new-geological-acid-seas-theory-sees-mining-firm-valued-at-half-a-billion-dollars-13362/

Posted by on Aug 23 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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