introduction to northwest resources ltd

NWR: http://www.nw-resources.com.au/
Shares: 32.7 mill +15 mill esc., a total of 47.5 mill. Price 26 cents
Options: 12.2 mill(NWRO)to be converted on 31 June 2008 @20 cents, price: 12 cents, but very thin trading. Also 15.6 unlist options 2008-2011.

NWR is concerned with Gold and antimony. A 1% antimony is the equivalent of about 2.4 grammes of Gold or $A65 (Gold US$640; $A=0.76).

As up to 10% antimony is encountered in Situ, this alone is a strong contributor to potential profit.
"The price of antimony (sold on the LME) has increased over 160% since 2001 to a current price of around US$4,050 per tonne".

INFRASTRUCTURE:
22 Febr 2006:
"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: #56256;#56451; Established shafts, declines and access drives
#56256;#56451; 40,000 TPA treatment plant (upgradeable to 80,000 TPA with additional float cells)
#56256;#56451; Access to sufficient water for operations
#56256;#56451; Tailings dam
#56256;#56451; Full mining camp #56256;#56451; Good roads - only 2 hrs from Newman
#56256;#56451; Granted mining leases - no Native Title issues

This infrastructure will significantly reduce the capital expenditure required to bring Blue Spec, Golden Spec and other deposits identified along the extent of the Blue Spec Shear into production allowing Northwest to fast track development".

PROJECT NULLAGINE- Gold and antimony
9 Dec 2005: High grade gold-antimony results confirm Green Stripe discovery
http://sa.iguana2.com/cache/3db9ce6133caedb589955078aa9310fa/ASX-NWR-393739.pdf

22 Febr 2006: Golden Spec Delivers Visible Gold-Antimony Assays
http://sa.iguana2.com/cache/9efe6fe46aab6fb43d1ba04626141be0/ASX-NWR-401018.pdf

14 July 2006: Second High Grade Gold Shear Discovered
http://sa.iguana2.com/cache/051f2f4419e991fd69fdaf2f60c2fc56/ASX-NWR-418108.pdf

27 July: High-Grade Results Continue From Golden Spec
http://sa.iguana2.com/cache/d77fb9a6aa229be97b56ac566c88f892/ASX-NWR-419297.pdf

"A JORC compliant resource for the “new” Golden Spec and Green Spec deposits will be announced in mid August, with a “new” Blue Spec resource announcement anticipated for late 2006.

Northwest has initiated a scoping study (the pre-cursor to a feasibility study) on jointly developing the “new” Golden Spec and Blue Spec deposits as well as the rapidly emerging Green Spec deposit discovered late last year. The scoping study will report on engineering and mine design options, capital expenditure and additional infrastructure requirements and metallurgical test work and processing options.

Northwest considers that pre-production capital expenditure to bring the “new” Golden Spec and Blue Spec deposits into production will be relatively low due to the presence of established infrastructure, including shafts, declines and access drives for underground mining, a proven treatment plant and tailings dam on site and access to sufficient water for operations.

Current drilling: Drilling activities are progressing well with diamond drilling now being directed towards extensions of the “new” Blue Spec deposit and RC drilling having recently completed another pass of extensional drilling below the Green Spec deposit. Results will be released to the market as soon as they are available.

31 July: Fourth Quarter Activities & Cashflow Reports
http://sa.iguana2.com/cache/c0e4691f931e7d4f589a34eb0e078f7b/ASX-NWR-419762.pdf

#56256;#56451; The Green Spec deposit confirmed as the third significant gold deposit on the high-grade Blue Spec Shear supporting Northwest’s theory that the Shear hosts multiple high-grade gold deposits.

#56256;#56451; The “new” Golden Spec deposit continues to return impressive high gold grades at depth.

#56256;#56451; Northwest commenced a scoping study (the pre-cursor to a feasibility study) on jointly developing the “new” Blue and Golden Spec deposits as well as the rapidly emerging Green Spec deposit

#56256;#56451; Northwest secured an option over highly prospective tenements adjoining the northern boundary of the Blue Spec Shear Gold Project consolidating control of the area.

#56256;#56451; A capital raising of $2 million announced shortly after the end of the quarter.

"Northwest’s drilling programme will be primarily focused on the high-grade Blue Spec Shear Gold Project where Northwest believes it can rapidly progress a number of high-grade gold deposits through to open cut and underground production. A smaller programme of drilling is also planned for the Camel Creek Gold Project where Northwest last year identified four medium grade open-pittable resources. Northwest will continue to target large tonnage, medium grade resources (2-5 g/t) amenable to open-cut mining at this project".


Gerry
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