Norwest’s new Bulgera gold asset set for a “dramatic rerating”
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Special Report: Norwest Minerals’ (ASX:NWM) share price leapt over 21 per cent after the explorer announced plans to buy the historic Bulgera gold project, 200kms north of Meekatharra in WA.
With gold above $2000/oz, revitalising historic and underexplored gold mines is very much in style.
These neglected mines – often mothballed when gold prices were around $500/oz – can come with existing reserves and ‘walk up’ drilling targets, which makes fresh gold resources a lot easier to unearth using modern exploration methods.
For small cap explorers, this can mean a quick, cost effective path to production.
Norwest paid $220,000 for the Bulgera gold project, which is a figurative stone’s throw from the long life 5moz Plutonic gold operation.
Historic mining at Bulgera totalled 23,400oz from four open pits:
They were mined when gold was selling at or below A$570 per ounce; but with gold now exceeding A$2,000 per ounce, Norwest believes resource definition and exploration work “will add significant value to Bulgera”.
Bulgera’s extensive exploration, development and mining database shows multiple gold lodes extending below the four shallow open pits, and along the 5km strike of the sheared greenstone package.
Norwest is kicking off drilling along strike and below the small open pits as soon as statutory approvals are in place.
Buying Bulgera was an “easy decision” for Norwest, says chief executive Charles Schaus.
“The project database and open cut information pinpoint the projected positions of multiple gold lodes below the shallow pits and along Bulgera’s 5km strike,” he says.
“Combined with a gold price 3.5 times higher than when mining ceased in 2004, the stage is set for a dramatic re-rating of this asset.”
The acquisition doesn’t mean Norwest is taking its eyes off the hunt for game-changing IOCG mineralisation at the Arunta West project, Schaus says.
Iron oxide copper gold ore deposits (IOCG), like Olympic Dam, can be tremendously large, high grade, and simple-to-process concentrations of copper, gold and uranium ores.
“The hunt is on with a 12,000-meter drilling programme across our North Dovers IOCG target commencing next month,” Schaus says.