jorc, page-4

This was posted @ ASF by Bush Trader.....



Current JORC resource of 155,000 + 55,000 = 210,000 oz Au @ 43g/t valued @ AUD$666/oz (Gold Price $650 US ; AUD$0.90) = $139,860,000 conservatively. Antimony credits thus far = a further 5,000 oz of Gold Equivalent = JORC val @ $143,190,000. As up to 10% antimony is encountered in Situ, this alone is a strong contributor to potential profit.
Shares: 82,958,931. Price 29cents = Market Cap of $24,058,090 - today

Listed Options: 49,811,487(NWRO) expire 31st January 2008 @ 20 cents, price 8.6c

Unlisted Options: 750,000 employee options expire 30th of June 2009 @ 30c
1,462,500 employee options expire 30th of June 2011 @ 30c
487,000 employee options expire 30th of June 2011 @ 25c
Total Unlisted Options:2,699,500

Fully diluted Basis: 135,470,362 Shares @ 30c = $40,641,108.60

If JORC compliant resource reaches target of 355,000 oz @ 35g/tonne @ AUD$666/oz = $236,430,000 + 10,000 oz equiv. of antimony credits ($6,660,000)

Target JORC resource valuation = $243,090,000 NWR Shareholder equity 65% (as % of JV with Craigside) NWR % = $158,008,500 = $1.17 per share fully diluted. Don’t ask me about the costs to process and extract the resource, however I do know that the higher the average grade of ore and the lower the stripping ratio the more profitable the proposition.

Current JORC resource valuation NWR @ 65% = $93,073,500 or 68c per share
Target JORC resource valuation NWR @ 65% = $158,008,500 = $1.17
58 % increase in Shareholder resource on a fully diluted basis


Further Exploration Upside

Defined gold bearing zones yet to be added to the potential JORC resource of Blue Spec East, Golden Spec, Green Spec and Red Ribbon and Green Stripe, All of which have had good initial drill results and require further infill drilling and Diamond Rig work. Camel Creek is a low priority; 55,000 oz with JORC resource average grade 2.5g/tonne

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