Kissie....Used to be a fan of this company, and always liked the...

Kissie....

Used to be a fan of this company, and always liked the high grades, but it has done farrk all for some time.

Attempts at evaluating resource companies, particularly a company in such an early phase of development as NWR, can only serve as a very very rough guide, as there are many unknown factors such as the metallurgical processes that will be required and it's efficiency in extracting the metal, and the nature and positioning of the orebody itself.

In saying that, I'll give it a go.


*****ATTEMPTED VALUATION*****


ASSUMPTIONS :

*TARGET jorc 355,000oz Au + 10,000oz Au (Anitmomy credits)

*IGV of resource applied - 10%

*Exchange rate of US$0.80 = AU$1.00

* 135,470,362 shares and options (fully diluted)

*Gold price US$670/oz (AU$837.00)



The inground value (IGV) of the TARGET oreboby equates to

365,000 x US$670 = US$244,550,000

NWR share(65%) = US$158,957,500

It is fairly common to use 10% of the IGV of the resource when attempting to value a resource company company in it's early stages such as NWR

10% of $US158,957,500 = $15.9 million


$US15.9M / 135,470,362 million shares (fully diluted) = US$0.1173per share

Applying an exchange rate of AU$1.00 = US$0.80 gives us a value of $0.1173 per NWR share

So, on the basis of a TARGET 365,000oz Au resource, and using 10% IGV, I would consider NWR would come in at AU$0.14667 per share.



Of course, as mentioned before, in the absence of a scoping study or BFS, many assumptions are made in this evaluation. Grade, shape, conformity, and depth of the orebody, as well as the metallurgical processes that will be required to extract the metal are still largely unknown, and are critical factors that need to be known to determine whether any deposit will ultimately be commercially viable.

Using 10% of the inground value (IGV) of the resource as I have is fairly standard. Perhaps the argument could be made that due to the high grade nature of the deposits and some existing infrastucture higher profitability would result, suggesting that up to 20% of IGV could be used.... but certainly no higher than that.

15% IGV - AU$0.220 per share

20% IGV - AU$0.293