NWR - Northwest Resources

Hey TheStorm. Your reading of the NWR JORC is very innacurate. The JORC that was released yesterday is very preliminary and it ONLY covered a very limited part of the overall drill program. On Blue Spec the ounces per meter between 320 - 470m on the vertical plunging shoot system in September were in the range 625-875 au ozs equivalent (au + sb). AS of yesterday that had increased +1,100 ozs per vertical meter AND they are still drilling in this area for more ounces at a current grade of 46.3 g/t which just happens to be the highest grade gold mine in Australia. SO the resource will increase in size and add more gold to each vertical meter of plunge AND they are also drilling below this level down to 600m. It is assumed that the vertical system continues its plunge way below 600m, could easily go to several thousand meters.

They gave very preliminary data on Golden Spec which consists of two shoot systems called Main and Western Shoots. In September the estimate was a pay of 370-510 ozs per vertical meter. Yesterday's report says that they are carrying out work to "significantly upgrade the size of the current resource". The same goes for Green Spec. In the recent NWR Annual Report they spoke of a potential of +1,000,000 high grade ounces on the Blue Spec alone, this does not include the Red Ribbon Shear nor Camel Creek nor the other 50% of their properties that remain totally unexplored.

The other very interesting fact is that WTE controls areas around NWR. Between the two companies they control a strike zone that is at least 30 kms long and about 10 kms wide that is honeycombed with gold targets. Current "potential" and JORC is around 2.2 million ounces with less than 5-10% of the potential?? revealed. NWR controls the very high value ground and WTE the open pittable areas along strike which have only been shallow drilled. IMHO we are watching the emergence of a new gold province.

NWR is also running a 18,000m drill program on a number of new targets along strike. This program has drilled thru about 10,000m and another 8,000m will be completed by Christmas. The discovery of new high grade gold shoots and open pittable areas will dramatically increase the production potential of the area. I am sure a lot of majors and investors with deep pockets are watching what is going on here.

Yesterday's selling was mostly uninformed innvestors and moms and dads selling. Someone was sioaking up every share on offer. The bidding on the close got quite aggressive.

As a backup to my previous comment, Mining News has just covered NWR "all hail Northwest... stakes its claim (as king of high grade)" NWR Press Release covered and interview with management. Main points are that Blue Spec JORC will jump to +300,000 ozs (of very high grade ozs from current 165,390 ozs). NWR is quitely confident of finding other high grade deposits on their Shear Zones. Guess what, must be the current 18,000 m program has come up with some interesting stuff??

THE STORM...(in a tea cup)....lol


I'm holding long term..we need at least one down ramper here I suppose....go back to HOTCOPPER stormy....you ning nong!...get a life!

Still like what I paid for and shouldn't go below 30c......more to come....100g/t aint that far away.....PS buying silver as a retirement fund.... real silver...blocks of it........enjoy it while you still got it!....

There is no need for invective or spleen. All views are accepted and discussed. NWR came up on my research list in early August, while I was checking into it my broker gave me a research report produced by Carmichael's. Following on from that I went into that report fairly deeply. NWR is using some of the best technical perople in the country to develop their property. Management is very resepected, very little money goes into management pockets and they hold lots of shares in NWR. They run the most aggressive full bore drill program of any small explorer in Australia. This thing has lots of legs. The only constraint is that they finding it hard to get drill assays back quickly and there are staff shortages throughout the industry because of boom conditions. Good luck to all longs.

saltyjones said:

at the pace they are drilling they must be chewing the dough up. i'd guess another issue of shares within months. this time with us mob having the option to purchase.

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Saltyjones, as usual in this thread you are spot on.

From the announcement:
The NWR Non-Renounceable Rights issue is to raise 5.51million.
1 new share for every 3 shares held at an issue price of .31c
You will also receive 1 free listed option for every 2 new shares issued under the offer. Options exerciseable at $0.20 on 31 January 2008.

So pacer you finally can get your hands on some free options, although the deal the 'sophisticated' investors got a few months back was much more attractive.

So who will be taking up the offer, or selling the shares with the rights?

Maffu....I wish I was sophisticated.....like them other investors....what a RORT!.....sophisticated investors get weighted average over a month and 1 for 1 ...and we get it over 9 days, and 1 for two...oh and 30% more than the sophistacated investors paid.......what a rip-off!!!!....who were those 'sophisticated' investors?....smacks of 'the boys club'......I will be spitting the dummy at the next AGM....even if the SP hits $3

All I can say is, sarcasticly.........thanks for looking after your loyal holders....not!
But in this game what more did I expect....

Of course I will be applying for the offer and more......if I can get my hands on them....I'd be silly not to......I'll let you work out why....

Ahhh well a poke in they eye is better than .......lol

IMHO there MUST be some very interesting stuff coming out of the 18,000m shear drilling program. I will hazard a guess that they have hit some high grade veins AND they have an inventory of over 30 such targets. The stock is very tightly held, so the management and friendly insiders will pay for stock out of their own pockets (what a refreshing change).

At $6 million in kitty they can drill out about 100,000m !!! or around 1,000x100m holes!!! IMHO somethin big is going down. Why would anyone want to drill so aggresively??

At 31 cents plus half an oppie in the deal you pay 31 cents and get back one share plus about 8 cents woth of 1/2 an oppie = 39 cents. I formly believe something big is going down and the news will be released before shareholders have to pay up for their new share.

sydneysider said:

At 31 cents plus half an oppie in the deal you pay 31 cents and get back one share plus about 8 cents woth of 1/2 an oppie = 39 cents. I formly believe something big is going down and the news will be released before shareholders have to pay up for their new share.

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Hmm if they had big news such as that, wouldnt it be better to release it first, then take the 9-day moving average of the share price after the announcement allowing them to raise more equity?

Anyway now for the complete newbie questions, i have read all the documents and you need to pay via cheque if you take up the rights. I dont have a cheque account so could i use my parents/friends cheque, or would it have to be in my name?

hey Maffu .
When did you get that paper work . ?

In New zealand we always seem to have to wait until the offers are just about closed before we get any literature. I will have to go and have a look at the ann. so I can find out what is happening .
But I have never past up the option of some options . I just hate that sophisticated term . My money is as good as anyone elses

Cheers martin

maffu said:

Hmm if they had big news such as that, wouldnt it be better to release it first, then take the 9-day moving average of the share price after the announcement allowing them to raise more equity?

Anyway now for the complete newbie questions, i have read all the documents and you need to pay via cheque if you take up the rights. I dont have a cheque account so could i use my parents/friends cheque, or would it have to be in my name?

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buy yourself a $5 bank cheque or better still ask the folks to write & sign the chq. & pay them back when you sell in 18 months for $1.50 a share.

x2rider said:

hey Maffu .
When did you get that paper work . ?

In New zealand we always seem to have to wait until the offers are just about closed before we get any literature. I will have to go and have a look at the ann. so I can find out what is happening .
But I have never past up the option of some options . I just hate that sophisticated term . My money is as good as anyone elses

Cheers martin

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Hi, you can read the letter "letter to shareholders" posted in the NWR annoucnements if it takes your mail a few days to get to NZ.
http://www.asx.com.au/asx/research/...panyName=&principalActivity=&industryGroup=NO

last trade was at $0.30 -- great chance to top up if you are keen!

white monkey said:

last trade was at $0.30 -- great chance to top up if you are keen!

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Strange. There is no buying depth for NWR above .30c today, after a week or two of prices being above that. After a -14% drop today the board will be hoping the price picks up or that share placement will not be filled up, and they chose not to underwrite the offer.

NWR sp and oppies are IMHO severly discounted. I am speculating that the drilling data from the 18,000m shear zone is very very positive as is the current drilling on the Blue Spec Shear Mine. Various third party published materials indicate that NWR will be capable of producing between 60,000 to 200,000 ozs of very high grade gold per year. That is IMHO a little less that 18 months away. Market cap is around $17 million.

A number of large blocks were chomped this morning at 32 & 33. The oppies are still very discounted at 14.5. IMHO the chomping is indicating that news is coming soon.

maffu said:

Strange. There is no buying depth for NWR above .30c today, after a week or two of prices being above that. After a -14% drop today the board will be hoping the price picks up or that share placement will not be filled up, and they chose not to underwrite the offer.

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I think you'd be silly not to take up the offer even if the SP went to 28c......ie what will the oppies be worth?

I got in a couple of weeks ago and I'm holding for at least 12 months. One of the more promising micro cap gold stock companies in Australia. The most important aspect and the crowning jewel for this company is the high grade resource. At 250k ounce resource announced recently, its a good first building block. Its all about liking the story and people behind it.

LifeisShort said:

I got in a couple of weeks ago and I'm holding for at least 12 months. One of the more promising micro cap gold stock companies in Australia. The most important aspect and the crowning jewel for this company is the high grade resource. At 250k ounce resource announced recently, its a good first building block. Its all about liking the story and people behind it.

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The oppies are being given away at 15 -15.5 and the shares are a bargain at 34. With gold around US$640 and running we may see some spectacular runners amongst the smaller golds. NWR has class written all over it, they claim the richest gold mine in Australia and have one of the most active drilling programs in Australia

I completely agree. Its one of my favourite little stocks. You have to like what they have and what they doing at present. Getting some oppies in the capital raising at the moment.

A lot of folk do not realize that the Spec Mines could potentially be very deep systems. IMHO Blue Spec could have a vertical system that plunges at least several kilometers. At +1,100 ounces per vertical meter (you do the math).