Date: 27 July 2006 Number: 11/2006 High-Grade Results Continue From Golden Spec Northwest is pleased to announce further high-grade gold intersections from extensional drilling at the two principle shoots that comprise “new” Golden Spec deposit, one of three high-grade gold deposits Northwest is advancing at its premier Blue Spec Shear Gold Project. These results continue to confirm the quality of high-grade resource extensions below the shallowly developed Golden Spec mine. Golden Spec 2.8m grading 77.6 g/t gold & 7.2% Sb including 1.18m grading 176 g/t gold and 17.1% Sb (from 190m down-hole, Main Shoot) 0.9m grading 61.3 g/t gold & 20.3% Sb including 0.42m grading 111.0 g/t gold & 42.8% Sb (from 188m down-hole, Western Shoot) 1.32m grading 28.9 g/t gold & 1.1% Sb including 0.37m grading 57.4g/t gold and 3.0% Sb (from 134m down-hole, Western Shoot) Resource drilling has concentrated on defining the “new” Golden Spec deposit’s depth extensions. The eastern and western strike extents of the deposit are presently being tested. The zone between the Main and Western Shoots will be tested in the near future. Earlier intersections at the “new” Golden Spec deposit all recorded impressive grades and demonstrate excellent continuity, and included: �� 2.3m @ 75.7 g/t gold & 7.66% Sb (including 0.75m @ 183 g/t gold & 18.6% Sb) �� 2m @ 74.5 g/t gold (including 0.68m @ 214 g/t gold) �� 1.4m @ 91.3 g/t gold (including 0.9m @ 100.5 g/t gold & 16.85% Sb) �� 1m @ 51 g/t gold & 3.1% Sb These intersections continue to indicate that gold grades and widths are increasing with depth at the “new” Golden Spec deposit which is consistent with the production history of the mine where the gold grade from surface to lowest workings increased by approximately 46%. JORC Resource 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 Northwest Resources Limited 27.07.2006 Page 2 of 5 Development Plan and Scoping Study Northwest plans initially to develop the “new” Golden Spec deposit from its current depth of 120m to around 500m in conjunction with the development of the “new” Blue Spec deposit. This will provide a valuable second ore source for operations. The targeted depth of 500m (a relatively shallow depth for underground operations) is not constrained by any known geological factors. In fact, given the excellent continuity of the Golden Spec deposit, a production history demonstrating grades and widths increasing with depth and Northwest’s understanding of structural controls to target extensions, there are strong reasons to believe the deposit can be economically mined to greater depths. Northwest will be in a better position to make this determination after further extensional drilling is completed. 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. The scoping study will provide Northwest with tangible and scalable options from which to plan the optimal development schedule for the Blue Spec Shear Gold Project. Northwest aim is to significantly reduce the timeframes to production whist ensuring the company’s resources are allocated efficiently. 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. For more information please contact: John Merity Managing Director Tel: +61 2 9327 2990 Email: [email protected] Christian Easterday Exploration Manager Tel: +61 8 9322 8344 Email: [email protected] or visit Northwest’s website at www.nw-resources.com.au Northwest Resources Limited 27.07.2006 Page 3 of 5 Northwest Resources Limited 27.07.2006 Page 4of 5 Northwest Resources Limited 27.072.2006 Page 5 of 5 The “new” Golden Spec deposit The “new” Golden Spec deposit comprises the continuation of high-grade mineralisation that plunges sub-vertically below the historical Main Shoot and Western Shoot underground workings, developed to 120m vertical. These shoots are both hosted within the Blue Spec Shear Zone, a well defined zone of deformation that is dominantly held by Northwest over a strike length of approximately 16kms. High-grade gold mineralisation at the “new” Golden Spec is characterised by both laminated and breccia vein styles, while massive stibnite (antimony ore) mineralisation is more closely associated with areas of breccia vein development. Table of Golden Spec drilling results Hole_ID Golden Spec Northing Easting Azimuth Dip From To Width Grade Grade Location (Local) (m) (m) (m) Au g/t Sb % BSD0008 Golden Spec (Western Shoot) 54151 66917 20.6 -66.3 134.9 136.3 1.32 28.91 1.10 including 0.37 57.40 3.00 BSD0010 Golden Spec (Western Shoot) 54134 66904 4.7 -71.4 188.3 189.2 0.90 61.35 20.28 including 0.42 111.00 42.80 BSD0011 Golden Spec (Main Shoot) 54127 67123 10.4 -55.2 190.3 193.1 2.80 77.59 7.22 including 1.18 176.03 17.09 The information in this report is based on information compiled by Mr. Christian Easterday, who is a Member of Australian Institute of Geoscientists. Mr. Easterday is a full-time employee of Northwest Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Easterday consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Notes: �� Drillholes denoted by BSD represent diamond holes �� All intersections comprise a composite interval of niche (< 1m) and 1m sample intervals �� All diamond sample intervals subjected to whole core analysis �� All diamond gold assays analysed using a screen fir assay technique - ALS Chemex laboratories �� All Sb assays analysed using ICP analysis with all ore grade results (>1%) subjected to XRF analysis - ALS Chemex Laboratories �� Intersections calculated as weighted averages. All high grade Au and Sb results qualified with outlier assays (>50g/t Au and >1%Sb) �� Intersection intervals calculated using a 1.0g/t Au or 1% Sb envelope and allowing 2m internal dilution
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