NWR - Northwest Resources
- Thread starter pacer
- Start date
-
- Tags
- northwest resources nwr
- Joined
- 4 January 2007
- Posts
- 247
- Reactions
- 1
Anybody holding? I have not been trading since the collapse. Has anyone given thought to the recent ralley if if only of small volume as well as though in regards to the cash value of the stock with current cash reserves on a fully diluted basis it values the stock at 6.4 cents per share not allowing for any other exploration assets. I would of thought this would potentailly be attractive aquisition/merger considering how hard it must be to borrow cash in the mining sector at present.
Cheers
BT
Cheers
BT
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
My broker mentioned this stock to me today so I had a look and from what I see it does look very interesting
Mkt Cap: 130m Shares@7c = $9M
Cash: $6.5m = 5cents per share
EV = $2.5m = 2cents
Gold Resource:
High Grade Blue Spec 325kt's@24.3g/t Au + 1.7%Ant = 255koz's Au +5,550t's Ant
Total Blue Spec 1.33Mt's@8.3g/t Au + 1% Ant = 355k oz's AU + 7,300T's Ant
Other low/avg grade Nullagine 14Mt's @ 2g/t Au = 900koz's Au
The company looks very cheap on an EV basis however as with MAT I dont expect anything big until some sort of plan to production is found
Mkt Cap: 130m Shares@7c = $9M
Cash: $6.5m = 5cents per share
EV = $2.5m = 2cents
Gold Resource:
High Grade Blue Spec 325kt's@24.3g/t Au + 1.7%Ant = 255koz's Au +5,550t's Ant
Total Blue Spec 1.33Mt's@8.3g/t Au + 1% Ant = 355k oz's AU + 7,300T's Ant
Other low/avg grade Nullagine 14Mt's @ 2g/t Au = 900koz's Au
The company looks very cheap on an EV basis however as with MAT I dont expect anything big until some sort of plan to production is found
Thanks for the numbers Young.
I was planning on doing those calculations myself in a few days.
Does anyone experienced with junior mining firms have any estimates on the costs of production? Is a 3-5% profit margin possible (if it is then NWR would be well undervalued)
I was planning on doing those calculations myself in a few days.
Does anyone experienced with junior mining firms have any estimates on the costs of production? Is a 3-5% profit margin possible (if it is then NWR would be well undervalued)
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
Maffu I will have a look to see if the company has done a scoping study or cost estimates, but usually speaking the cost factor comes from digging up the ore, then seprating the gold from the ore
So obviously the higher the grade of gold the cheaper the costs, now most WA operations are 2g/t-5g/t Au and have operating costs of $500-$800oz
So making a pure guess I would say NWR's costs would be in the lowest quartile given there Gold grades are very very high
CanOz
Home runs feel good, but base hits pay bills!
- Joined
- 11 July 2006
- Posts
- 11,543
- Reactions
- 519
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
thanks for the chart Canaussieuck, your spot on re the liquidity, buying is going to be hard, but I'm not going to chase this, will wait for sellers to come out of the woodwork
I got my info from the qtrly re the resource etc
1.35M ozs of gold, especially the high grade components should be worth $10oz at least = $13.5m = 10c
Add the 5c of cash and you get a minimum value of 15c IMO,
Re the development plans it looks like the company is in the process of farming/JV'ing
Mining co‐venturer discussions
The Company is continuing confidential discussions with a number of parties who have expressed interest in participating in development of the Blue Spec deposit as the first stage of a broader regional development strategy for the Nullagine goldfield. The Board is focusing on parties with demonstrable technical and financial resources with the aim of structuring a transaction which will minimize development and production risk to Northwest whilst
enabling the company to benefit from development success. Selected parties will undertake site visits during May.
I got my info from the qtrly re the resource etc
1.35M ozs of gold, especially the high grade components should be worth $10oz at least = $13.5m = 10c
Add the 5c of cash and you get a minimum value of 15c IMO,
Re the development plans it looks like the company is in the process of farming/JV'ing
Mining co‐venturer discussions
The Company is continuing confidential discussions with a number of parties who have expressed interest in participating in development of the Blue Spec deposit as the first stage of a broader regional development strategy for the Nullagine goldfield. The Board is focusing on parties with demonstrable technical and financial resources with the aim of structuring a transaction which will minimize development and production risk to Northwest whilst
enabling the company to benefit from development success. Selected parties will undertake site visits during May.
- Joined
- 6 June 2007
- Posts
- 1,314
- Reactions
- 10
Haven't looked at these for awhile but wasn't the issue that the Blue deposit's ore body runs deep underground the thus will cost plenty to mine?
Worth checking out.
Worth checking out.
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
Hey Bushman, still doing my due diligence on it but with 5cents cash backing I'm starting to think buying 5c-7c seems safe
Got too many fingers in too many pies at the moment but definately need more gold exposure
- Joined
- 18 February 2006
- Posts
- 4,200
- Reactions
- 2
Here I was thinking it may come off a bit, looks like theres just nothing for sale under 7c
Also thought they were looking for JV's to get their hands on plant ie some sort of toll treatment or something but found this in the annual report page 14
Competitive Advantages
Northwest’s development strategy for the Nullagine Gold
Project benefits from a number of competitive advantages
including:
• Availability of previous mining and production records
which will greatly assist with decisions in respect of
mine design, mining method and metallurgical issues.
• The presence of significant underground infrastructure
at the Blue Spec deposit, including both a three
compartment shaft and decline constructed by Anglo
American which when refurbished will allow direct
access to Blue Spec’s current resource.
• A proven treatment plant adjacent to the deposit.
The plant was installed by Minproc in the late 1980’s
and is currently configured for a throughput of around
40,000 tpa. However, the existing crushing and grinding
units of the plant have a capacity exceeding 100,000
tpa allowing production rates to be significantly
expanded without the need for extensive redesigning.
The treatment plant achieved recoveries of around 90%
for gold and produced a valuable antimony concentrate
grading around 60% antimony.
Also looks like the company may be on the acquisition path
New mineral opportunities
The continuing decline in the outlook for the world economy, in particular for natural resources, continues to offer significant project opportunities to well resourced mining and exploration companies.
The Company is seeking to take advantage of the current market conditions by actively evaluating a number of potentially attractive new opportunities and projects both in Australia and overseas to add value for shareholders.
Thoughts on why this is so cheap? Something doesn't smell right? or overlooked by mkt?
5c cash backing is what gets me
Also thought they were looking for JV's to get their hands on plant ie some sort of toll treatment or something but found this in the annual report page 14
Competitive Advantages
Northwest’s development strategy for the Nullagine Gold
Project benefits from a number of competitive advantages
including:
• Availability of previous mining and production records
which will greatly assist with decisions in respect of
mine design, mining method and metallurgical issues.
• The presence of significant underground infrastructure
at the Blue Spec deposit, including both a three
compartment shaft and decline constructed by Anglo
American which when refurbished will allow direct
access to Blue Spec’s current resource.
• A proven treatment plant adjacent to the deposit.
The plant was installed by Minproc in the late 1980’s
and is currently configured for a throughput of around
40,000 tpa. However, the existing crushing and grinding
units of the plant have a capacity exceeding 100,000
tpa allowing production rates to be significantly
expanded without the need for extensive redesigning.
The treatment plant achieved recoveries of around 90%
for gold and produced a valuable antimony concentrate
grading around 60% antimony.
Also looks like the company may be on the acquisition path
New mineral opportunities
The continuing decline in the outlook for the world economy, in particular for natural resources, continues to offer significant project opportunities to well resourced mining and exploration companies.
The Company is seeking to take advantage of the current market conditions by actively evaluating a number of potentially attractive new opportunities and projects both in Australia and overseas to add value for shareholders.
Thoughts on why this is so cheap? Something doesn't smell right? or overlooked by mkt?
5c cash backing is what gets me
• The presence of significant underground infrastructure
at the Blue Spec deposit, including both a three
compartment shaft and decline constructed by Anglo
American which when refurbished will allow direct
access to Blue Spec’s current resource.
• A proven treatment plant adjacent to the deposit.
The plant was installed by Minproc in the late 1980’s
and is currently configured for a throughput of around
40,000 tpa. However, the existing crushing and grinding
units of the plant have a capacity exceeding 100,000
tpa allowing production rates to be significantly
expanded without the need for extensive redesigning.
The treatment plant achieved recoveries of around 90%
for gold and produced a valuable antimony concentrate
grading around 60% antimony.[/COLOR]
Also looks like the company may be on the acquisition path
New mineral opportunities
The continuing decline in the outlook for the world economy, in particular for natural resources, continues to offer significant project opportunities to well resourced mining and exploration companies.
The Company is seeking to take advantage of the current market conditions by actively evaluating a number of potentially attractive new opportunities and projects both in Australia and overseas to add value for shareholders.
Thoughts on why this is so cheap? Something doesn't smell right? or overlooked by mkt?
5c cash backing is what gets me
- No one has been underground for a long time and that "infrastructure" would have been flooded for many years how much refurb and replace would be required is anyones guess
- the mill has sat dormant for at least 15 years its not under C and A. Due to the containment bund surrounding it much of those years it has sat in water meaning most of the bottom 40cm including tanks etc are very rusted. The cost of getting the mill going again may well be uneconomicle compared to dozing it and building again
- with under 6 mill in the bank i doubt that would aquire much even the drilling seems to have been scaled back with the first program due to start soon of 2,500m
previos years they have drilled over 20,000m
Well Bushman, like many others, I have been sweating on NWR to do something positive for a long time and in referance to your statement above, they obviously agree as they have completed a surface drillling campaign this month. Refer to NWR's statement below and we hopefully will see at the beginning of November that there is something to mine in an open cut operation. Let's hope and pray for good news (that is those of us who are long suffering).
Northwest is pleased to announce that it has completed its 7,000m shallow drilling program focused on the
high-grade Blue Spec Shear at its Nullagine Gold & Antimony Project in Western Australia. The program
commenced in early September.
The RC drilling program tested a number of targets along a 2.2km strike of the shear. This section of the
shear hosts the high-grade Blue Spec (253,000 oz @ 24.3 g/t Au and 5,550t Sb @ 1.72%) and Golden Spec
(35,000 oz @ 32.2 g/t Au and 500t Sb @ 1.40%) deposits.
Both the Blue Spec and Golden Spec deposits are high-grade plunging shoot style deposits and the shallow
drilling program was designed to test the potential for previously unidentified high-grade, near-surface
mineralisation along the Blue Spec Shear which could support open pit operations prior to progressing to the
underground development of the Blue Spec and Golden Spec deposits.
Approximately 50% of the program samples have been despatched to Perth for assaying and the remainder
of the samples will be despatched early next week. Assaying and analysis of the samples is expected to take
approximately 4 weeks to complete. Results will be released to the market on completion of all assaying.
Well Maffu, I really think the Company is thinking ahead about its bank balance. They have about $4,000,000.00 cash available currently, however, at the rate it is being spent - about $1,300,000.00 last Fin. year, they are possibly targeting some easy money instead of say raising capital.
With a chance of the price of Gold continuing to increase next year, they'd be crazy to leave potential easy profits just laying about close to the surface.
The Company appears to be very patient in developing the Asset it undeniably has, that is why I continue to play the waiting game with some small measure of confidence.
But that's just my own thoughts.
With a chance of the price of Gold continuing to increase next year, they'd be crazy to leave potential easy profits just laying about close to the surface.
The Company appears to be very patient in developing the Asset it undeniably has, that is why I continue to play the waiting game with some small measure of confidence.
But that's just my own thoughts.
NWR's neighbor MOY is in the process of securing project financing to the tune of $40 million. They have a 1.3 mil oz gold project. Should this financing be completed it will open the door for possible JV with NWR or even merger. I'm speculating of course but IMO very good times are on the way!!!
Lets hope your speculation is correct.
NWR up 50% over the last few days from 9c to 13.5c
15% yesterday, and up 26% in the first 45 minutes today.
No news yet either, they said they expect to announce drilling results by 22nd November, maybe it is just speculation before the announcement that is driving the price.
I hold a few of these at an average price of 8.8c. Bought some time ago after I was introduced to the stock by a friend that got some barbecue talk information regarding their prospects. Had I listened to the technicats I would have sold them a long time ago as a non performer. This week I am up 76.1%. My friend recently assured me that they were "legit" (his words) and to hold.
Another triumph of fundamentals over technicals.
Another triumph of fundamentals over technicals.
Have to admit given some of the high grade (and shallow) Gold results released yesterday I was a bit surprised at the selloff!
Besides an existing Gold resource there is also the Antimony which could provide valuable mining credits at the current price of $11850 per tonne (of which there is a 7100 tonne resource for approx $84m in spot value)...
Emerging Trends did a report on NWR earlier this year that's worth a read also:
http://www.emergingtrendsreport.com/files/speculative_report_1--northwest_resources_ltd.pdf
and an interview with Richard Karn:
http://www.theaureport.com/pub/na/5879
Besides an existing Gold resource there is also the Antimony which could provide valuable mining credits at the current price of $11850 per tonne (of which there is a 7100 tonne resource for approx $84m in spot value)...
Emerging Trends did a report on NWR earlier this year that's worth a read also:
http://www.emergingtrendsreport.com/files/speculative_report_1--northwest_resources_ltd.pdf
and an interview with Richard Karn:
http://www.theaureport.com/pub/na/5879
