NWR - Northwest Resources

[Bush Trader]

Hi Miner & So Cynical

JORC updates due probably late October early November once the diamond results are all in, we could see a significant surprise to the upside of the predicted 300,000 oz Au equivalent, I’ve heard the some of the diamond cores have been “glowing”. There will be little movement in SP, other than from Lab traders i.e. Friday, until this announcement. The shares are good value under 30c in my opinion. NWR will be on the map for a lot more investors once some critical mass in terms of resource is defined.

Cheers


BT

 

[googly]

This company is really underperforming isn't it. When is something actually going to happen.

Very frustrating

 

[nioka]

This company is really underperforming isn't it. When is something actually going to happen.

Very frustrating

Until NWR prove their resource and get close to a take over or the start of production they are highly speculative. I consider them a good investment but admit my holding is in the red at this stage. I will continue to hold and am watching for some good news that will convince me to increase my holding. You just can't expect an instant fortune from this type of stock. They seem to be getting closer to proving the resource.

 

[googly]

I don't expect an instant fortune. It would just be nice to be in the black as I have been holdimng these for well over a year now and they have gone nowhere!!

 

[Bush Trader]

I don't expect an instant fortune. It would just be nice to be in the black as I have been holdimng these for well over a year now and they have gone nowhere!!

The good news is dips are being supported! Hang in there if your brave. I'm told that assay labs are constapated beyond imagination ATM, so you either have to wait for this resource upgrade off the back of some very strong intrim drilling results or quit, that up to you. Happy accumulating.


Cheers


BT

 

[maffu]

Hi Miner & So Cynical

JORC updates due probably late October early November

BT

Still waiting... SP dropped to .27 which is where i bought in at near on a year ago now, 1st time the share has threatened to lose me any money.

You heard any more news? And where do you hear your reports of glowing samples? Do you have friends working for the company or just other net postings?

Edit: it was also very interesting to see the 4million shares traded before the announcement was made. Someone in NWR or at ASX must have some loose lips... I thought the ASX was pretty strict on insider trading these days, that seemed blatantly obvious.

 

[nioka]

Edit: it was also very interesting to see the 4million shares traded before the announcement was made. Someone in NWR or at ASX must have some loose lips... I thought the ASX was pretty strict on insider trading these days, that seemed blatantly obvious.

Somebody was in the know. Good news released today, NWR should move in a positive direction from here.

 

[Bush Trader]

Still waiting... SP dropped to .27 which is where i bought in at near on a year ago now, 1st time the share has threatened to lose me any money.

You heard any more news? And where do you hear your reports of glowing samples? Do you have friends working for the company or just other net postings?

.

G’Day Maffu

Sorry for the delayed reply, however I’ve had no Internet access for 2 days (that’s the Bush for you).

Well we got some news today, though it’s not the JORC upgraded resource numbers that we’ve all been waiting for. It was alluded to in the announcement that 320,000 oz of Au + Antimony credits is the likely upgrade. Which if you read my previous post that should increase that NPV of the resource to 60c + plus per share. Remember the frustration that investors in ‘NEW’ had prior to its lift to true value. I also hold this stock.

The important info in regards to the resource was as follows:

The size of the current JORC resource
estimate of 155,000 oz gold grading 46.3
g/t and 3,400 t of antimony grading 3.2%
(between 320-470 vertical metres) and
the metal profile of the resource which
exceeds 1,000 ounces of gold per vertical
metre.

• The success of resource and extensional
drilling during 2007 targeting the 470-
620 vertical metre zone which has
confirmed the strong continuation of
high-grade gold mineralisation below the
currently defined resource.

• Northwest’s expectation that the revised
JORC compliant resource at Blue Spec to
be announced towards the end of the first
quarter 2008 will reach 300,000 ounces
gold.

• Northwest’s improved understanding of
gold grade distribution within Blue Spec
arising from the location of subsidiary
fault zones intersecting the primary
Eastern and Western Lodes at Blue Spec.

I think a lot of patient money was disappointed that this announcement did not confirm the upgraded JORC resource and thus sold? I however I missed the day’s trading, so you may like to comment on the price action.

I thought that it was interesting that the company now focused on becoming a producer by early next year. Having existing processing plant and a camp is a fair head start with the current delays in infrastructure construction that are to be expected in WA ATM.

As far as where I get my information from you can read my earlier posts going back to January on this thread and that should be self explanatory enough.

Happy Holding


BT

 

[Bush Trader]

Edit: it was also very interesting to see the 4million shares traded before the announcement was made. Someone in NWR or at ASX must have some loose lips... I thought the ASX was pretty strict on insider trading these days, that seemed blatantly obvious.

As far as this sort of action is concerned, all I think us average punters can do is observe and learn. We have already discussed the amount of crossed trades (off market) that occured leading up to this period, and can only assume that it was Broker shuffling shares around on a large scale. Any thoughts nioka?


Cheers


BT

 

[nioka]

As far as this sort of action is concerned, all I think us average punters can do is observe and learn. We have already discussed the amount of crossed trades (off market) that occured leading up to this period, and can only assume that it was Broker shuffling shares around on a large scale. Any thoughts nioka?


Cheers


BT

I remember during the war there were posters up all over the place saying " loose lips sink ships". I guess it is the same thing here. There is always "pub talk" around and I admit I get a little of it from time to time. Was given some from the west a few minutes ago, will check it out and may have a post on Monday.Not about NWR. Got to be carefull as sometimes we get fed intentional spin. In the case of NWR I suppose the results were leaked but it did me no harm as I wasn't going to buy or sell until after the results. Sometimes I get annoyed with some of the oiler news being used to dump before a duster announcement. I was given pub talk on NWR some time ago and that is why I hold, didn't do me a lot of good as I'm still in the red with them.

 

[Bush Trader]

Hi All

Did anyone go to the AGM yesterday, if so what went on? Was there any interesting comments?


Cheers


BT

 

[trtkjd1]

Just a word of warning I have held these share myself and have just sold seems to be a lot of dithering in this company and I didn't like the AGM where they approved a company loan to buy their options however on paper they look very promising. I'm bailing out and waiting for the long overdue drill results and resource upgrade to be on the board.

 

[maffu]

Share price has plummeted despite the fact the gold price is strong.
The underwriters got smashed, they had to buy 25 million over market priced shares. Someone will lose there job if NWR don't recover.

I'm still holding, and hoping the cash they raised from the options is used wisely in finding me some more gold deposits.

Anyone else got any news from this company? Its been quiet in here the last few months....

 

[nioka]

Sydney Morning Herald reports two directors buying this week. J.J.Merity 2,500,000 @ 20c and M.E.Black 1,875,000 @ 20c. Even if it was a loan to convert options they must have faith in the prospects for NWR. And even if the company loaned the money to convert at least the money went back in and they still owe the amount to the company. That is the way I read it. It is a spec I will continue to hold, maybe making a few trades along the way to try to get it free carried.

 

[nioka]

An odd major shareholder notice today. Amalgamated Dairies ( New Zealand) announce they hold 9.29% in the name of Amalgamated dairies charitable trust. A charitable trust holding shares in a spec gold mining company.???????

 

[YELNATS]

The market hasn't reacted very well to today's announcement of a 63% upgrade to the JORC estimate of the Blue Spec gold deposit.

The main issue seems to be unceratinty over the lower zone results and further drilling has been put on hold pending expert advice.

The price is down about 30% to around 10c. I'm wondering whether that's an overeaction to the news. Any comments?

 

[Bush Trader]

The market hasn't reacted very well to today's announcement of a 63% upgrade to the JORC estimate of the Blue Spec gold deposit.

The main issue seems to be unceratinty over the lower zone results and further drilling has been put on hold pending expert advice.

The price is down about 30% to around 10c. I'm wondering whether that's an overeaction to the news. Any comments?

I have just tried to compile some numbers to give myself some comfort in regards to the decline in SP on what appears to be relatively good news.


JORC Compliant Resources of NWR are as follows


Blue Spec 253,000 oz
Camel Creek 46,000 oz
Golden Spec 36,000 oz
Green Spec 14,000 oz
Antimony Credit in Au oz 2,000 oz gold equivalent
Blue Spec remnant ore
from surface to 320m. 40,000oz

Total 401,000oz


Valued at $150 per oz. (assumes fire sale) $60,150,000


With further assets of mining plant, roads, camp etc

$10,000,000 aprox


Total $70,150,000



65% Assets Held by NWR $45,597,500

NWR Cash $9,000,000

Total NET Assets of NWR $54,597,500

135,470,418 Total Shares on a fully diluted basis.

Net assets per share $0.403/Share

This is a long way from 10c per share!!!!!!!!!!!!!!!!!!!!


I think that the market has been disappointed with the JORC upgrade for a number of reasons

1. It’s taken longer than promised to arrive.

2. Announcement on the 16th of November eluded to an upgraded Blue Spec Resource in the vicinity of 300,000 – 320,000 oz which has come in below expectations at 253,000 oz

3. The grades in the lower resource zone appear to be falling i.e. 40.4g/tonne in the upper zone to 17.5g/tonne in the lower zone. This may have been influence by a few poor drill results that may have had a dilutonary effect? Or the quality of the resource could be diminishing with depth, where previously it looked to be improving with depth.


I hope this helps



Cheers


BT

 

[exgeo]

I think it's more of a reaction to their "considering options" about the whole project. Sounds a bit ominous to me. But they are trading close their cash value ($9m) at $14m using a 10c share price. They also have a small mill. I'd dump them myself but then nobody commits suicide by jumping out of the basement. Guess I"m in for the long-haul.

 

[YELNATS]

Thanks for your analysis and comments BT & exgeo.

I guess the market being down today hasn't helped either.

nobody commits suicide by jumping out of the basement. Guess I"m in for the long-haul.

Very well put, ditto!

 

[Bush Trader]

I think it's more of a reaction to their "considering options" about the whole project. Sounds a bit ominous to me. But they are trading close their cash value ($9m) at $14m using a 10c share price. They also have a small mill. I'd dump them myself but then nobody commits suicide by jumping out of the basement. Guess I"m in for the long-haul.

"Considering Options", may not necessarily be negative. The scoping study was always going to be the next phase of the plan. They can't just keep drilling forever! Any thoughts on the critical mass of the current resource in terms of minability?


Cheers


BT