NWR - Northwest Resources

[Bush Trader]

At last some good news from NWR. Recent deep drilling at the blue spec site has have resulted in the deposit achieving key internal benchmarksrelated to resource continuity any growth potential. We should see an increase in the SP following this announcement by the company.

It seems to me that this share has lost its appeal to many punters. Volumes have bee low, which appears to mean that the institutional investors are sitting on their hands for the time being. The announcement the other day didn’t tell us anything that we didn’t already know, other than the speed of the drill programme will be ramped up. We all know that NWR are attempting to expand their JORC resource as quickly as possible. So, why the weakness in the Share Price? The fundamentals have not changed dramatically. Gold has probably not performed to anticipation of many in the market, nor has it imploded. Our currency is possibly stronger that expected, however NWR is not a producer at this stage. It has a reasonable amount of working capital and has not announced any further institutional placements to dilute the hell out of the small punter. Yet with all this in mind, it’s broken what I believe to be a key support level of 31c. Why? The placement in December was at 31c with one free 20 c option for every 4 shares purchased, so in fact the real cost base is 28.8c/Share assuming that the option is converted for 20 c. June & July were ordinary months for the stock last year if you look at the weekly chart below, so is there some sort of unobvious seasonality behind this weakness, or am I just trying to rationalise the irrational? Anyway I committed to this puppy long term and have taken the current weakness as an opportunity to accumulate both shares and options. Maybe its just another unrecognised NWE.

I would be interested in all your views

Cheers

BT

 

[Bush Trader]

Double posting (anybody would think that I was ramping)

Check this out from this arvo. Daily Volume 868,113

04:10:02 PM 0.310 1,613
03:53:11 PM 0.300 8,387
03:30:37 PM 0.310 613
03:29:28 PM 0.310 629,000
03:28:42 PM 0.310 1,490
03:26:34 PM 0.305 30,000
03:19:26 PM 0.300 3,510
03:19:10 PM 0.300 6,702
03:19:10 PM 0.300 26,578
03:18:16 PM 0.300 30,000

737893 shares in the last 42 minutes of trading, or 85% of the days volume.

Cheers


BT

 

[Bush Trader]

I don't know if anyone is still reading this however

1,060,000 Share traded in the first hour today. SP Up 7%, upgrade to the JORC resource must be just around the corner.

Cheers


BT

 

[Sean K]

I don't know if anyone is still reading this however

1,060,000 Share traded in the first hour today. SP Up 7%, upgrade to the JORC resource must be just around the corner.

Cheers

BT

I'm watching BT, but it's a long way off highs, and is not trending anywhere but sideways/down right now. Might have hit a bottom around 27.5 ish....

What's your FA valuation?

 

[nioka]

I don't know if anyone is still reading this however

1,060,000 Share traded in the first hour today. SP Up 7%, upgrade to the JORC resource must be just around the corner.

CheersBT

1,000,000 of them were crossed trades. Not much other action.I thought the information we have had to date on this one justified a better SP than we have. I've been expecting one of the major players would have made an offer for this one by now.
They are one of my red ink stocks that i still have hopes for.

 

[Bush Trader]

1,000,000 of them were crossed trades. Not much other action.I thought the information we have had to date on this one justified a better SP than we have. I've been expecting one of the major players would have made an offer for this one by now.
They are one of my red ink stocks that i still have hopes for.

Hi Nokia,

Please show me the mechanics of the crossed trades so as I can understand it. I'm not sure what you mean.

Cheers

BT

 

[Bush Trader]

Kennas,

I think this was what you were after:

Current JORC resource of 155,000 + 55,000 = 210,000 oz Au @ 43g/t valued @ AUD$666/oz (Gold Price $650 US ; AUD$0.90) = $139,860,000 conservatively. Antimony credits thus far = a further 5,000 oz of Gold Equivalent = JORC val @ $143,190,000. As up to 10% antimony is encountered in Situ, this alone is a strong contributor to potential profit.
Shares: 82,958,931. Price 29cents = Market Cap of $24,058,090 - today

Listed Options: 49,811,487(NWRO) expire 31st January 2008 @ 20 cents, price 8.6c

Unlisted Options: 750,000 employee options expire 30th of June 2009 @ 30c
1,462,500 employee options expire 30th of June 2011 @ 30c
487,000 employee options expire 30th of June 2011 @ 25c
Total Unlisted Options:2,699,500

Fully diluted Basis: 135,470,362 Shares @ 30c = $40,641,108.60

If JORC compliant resource reaches target of 355,000 oz @ 35g/tonne @ AUD$666/oz = $236,430,000 + 10,000 oz equiv. of antimony credits ($6,660,000)

Target JORC resource valuation = $243,090,000 NWR Shareholder equity 65% (as % of JV with Craigside) NWR % = $158,008,500 = $1.17 per share fully diluted. Don’t ask me about the costs to process and extract the resource, however I do know that the higher the average grade of ore and the lower the stripping ratio the more profitable the proposition.

Current JORC resource valuation NWR @ 65% = $93,073,500 or 68c per share
Target JORC resource valuation NWR @ 65% = $158,008,500 = $1.17
58 % increase in Shareholder resource on a fully diluted basis


Further Exploration Upside

Defined gold bearing zones yet to be added to the potential JORC resource of Blue Spec East, Golden Spec, Green Spec and Red Ribbon and Green Stripe, All of which have had good initial drill results and require further infill drilling and Diamond Rig work. Camel Creek is a low priority; 55,000 oz with JORC resource average grade 2.5g/tonne

Infrastructure on site. In addition to the obvious value of high grade gold-antimony mineralisation at Northwest’s Blue Spec Shear project, Northwest also benefits from significant existing mining infrastructure adjacent to the Golden and Blue Spec mines, including: Established shafts, declines and access drives 40,000 TPA treatment plant (upgradeable to 80,000 TPA with additional float cells). Access to sufficient water for operations; Tailings dam; Full mining camp; Good roads - only 2 hrs from Newman; Granted mining leases - no Native Title issues.

I sound like a real-estate agent don't I?

Cheers


BT

 

[nioka]

Hi Nokia,

Please show me the mechanics of the crossed trades so as I can understand it. I'm not sure what you mean.BT

I use Westpac and regularly check the last 10 trades. Usually if something odd looks to be happening. I checked NWR this morning when there was action with their trading and saw 3 trades totalling over 1M shares and shown as "crossed trades" which probably were trades made within a brokerage and not necessarily shown in the buy/sell quotes.

 

[Bush Trader]

Open 29c – low 27.5c – close 28.5c
Volume today 1,988,462 – 1,900,000 in 3 big chunks as Nokia describes a cross trades. 2 @ 500,000 + 1 @ 900,000.

Interesting!!!!!!!!!

Any thoughts on the following; institutional support, takeover, good announcement in the wings? Surley we will have see a change interest announcement shortly.


Cheers

BT

 

[Bush Trader]

Change in Directors Interest Notice today.

On Market purchase of 42,500 shares on Friday


Cheers


BT

 

[Bush Trader]

It looks as though the punters are overlooking the options whith the share price up 10% today the options are actually down (NWRO). Low cost exposure at 7.5c exp 31/1/08 @ 20c. Don't take this as advice it is only for those of you that are looking for lower risk leveraged exposure to the stock.

 

[nioka]

This week we saw two of the directors buying shares. That should be a good sign. Hope it means there is good news to come from more drilling results. I can't see them buying if there was bad news coming.

 

[nioka]

A couple of unusual trades today 959000 @27c and 781500 @28c. Both cross trades and lifting the SP quite nicely today despite the general fall in the market. Someone knows something?.

 

[Bush Trader]

Options up 38.5% (to 9c) just before the close today. Volume 134,000

Shares have had a quiet day still at 27.5, vol only 30,000

I wonder what is waiting in the wings?


Cheers


BT

 

[Bush Trader]

NWR Today, plenty of action, still no announcement


Last Trade = 0.32
Todays High = 0.335
Todays Low = 0.29
Previous Close = 0.29

Volume = 4691690
This is the highest volume ever traded on this share (refer to chart below), the previous high volumes have been around 2.2 million


Cheers


BT

 

[Bush Trader]

Info out!

Cheers

BT

Discovery of two new high-grade lodes at Blue Spec

Northwest is pleased to announce it has discovered two new high-grade lodes to the south and the north of
the currently defined Blue Spec JORC resource (155,000oz Au @ 46.3g/t and 3.2% Sb).

The discoveries were made in the course of completing the current resource drilling programme aimed at
achieving a revised JORC compliant resource estimate at Blue Spec of at least 300,000 oz gold and 7,000
tonnes of contained antimony (Sb).

Highlights

The Southern Lode, hosted in an interpreted southern splay fault, returned intersections from first
sampling undertaken of:
2.5m @ 156.2 g/t Au & 14.75% Sb from 715m down-hole
1.0m @ 8.2 g/t Au & 0.9% Sb from 695m down-hole
The Northern Lode, hosted in an interpreted northern splay fault, has been sampled in three diamond
holes so far, with the best intersection recording:
1.0m @ 94.6 g/t Au from 445m down-hole

At this stage both lodes show a trend of increasing grade with increasing proximity to the Blue Spec
shear. The Southern Lode and Northern Lode are shown on the cross section over page.

The new lodes were discovered by combining the results of new drilling intersections with the existing
diamond core structural data from drill holes that had previously intersected the northern splay fault.

The results emphasize the very high-grade nature of the underground mineralisation at Blue Spec and
the potential for Blue Spec to host additional lode positions which will significantly grow the size of the
Blue Spec resource inventory at depth.

Northwest believes that Blue Spec now has the potential to develop into a much larger deposit than
previously envisaged.

The intersections of the northern and southern splay structures and the Blue Spec Shear zone are
interpreted to be important structural controls on the mineralization and will enable Northwest to more
accurately target the primary lodes that comprise the Blue Spec ore body.

The discovery of the southern lode (at 80m below the base of the current target resource extension at
620m vertical), will likely have a positive impact on the size of the Blue Spec resource inventory at
depth. Northwest will assess the amount of additional diamond drilling that will be required to include
the new lode discovery in the forthcoming resource revision.

 

[nioka]

I thought this was good news, obviously the market today does not agree with me. I took the opportunity to buy a few more. I think this one has a fair chance of being a great mine in the near future. They seem to be proving there is "gold in them thar hills".

 

[Bush Trader]

I thought this was good news, obviously the market today does not agree with me. I took the opportunity to buy a few more. I think this one has a fair chance of being a great mine in the near future. They seem to be proving there is "gold in them thar hills".

The rats are fleeing the ship! I don’t understand this. An institution may be on the down ramp to stop a flood of hot money into this emerging Gold & Antimony producer. Maybe the punters were expecting this to be the upgraded JORC resource announcement. Be patient the gold industry is about to experience what the U308 industry did earlier this year, however I think it will be over a more sustained period.


Cheers


BT

 

[Miner]

Bush Traders and other

Any recent update on NWR ?
Its options are soon expiring and good amount of employees options convered.
Gold level is very low to sustain production on large scale though grade is unbelivably high.
I am tracking down with a view to invest at 27 cents. What do you think

Regards

 

[So_Cynical]

Gold level is very low to sustain production on large scale though grade is unbelievably high.
I am tracking down with a view to invest at 27 cents. What do you think

Regards

With this much gold "2.5m @ 156.2 g/t Au & 14.75% Sb fr 715m down-hole"
its hard to believe that they wont go get it...so its only a matter of time surely..im half keen on buying.