Reverse circulation drilling of around 2,000-2,500m, targeting four new prospects identified by Northwest’s innovative HYMAP survey: Red Dragon, Federation, Mustang and Corsair.
This is an important programme designed to test the effectiveness of Northwest’s HYMAP survey for the remote detection of gold deposits. If drilling proves successful, the prospectivity and size of the Nullagine gold project could be subject to a significant positive re-assessment.
Investors may recall that the Blue Spec Shear gold project, located in the Nullagine goldfield is less than 2 hour’s drive from the Pilbara hub of Newman. The project is one of the highest grade gold projects in Australia with a current JORC resource of 190,000 ounces gold grading 43.3 g/t with excellent potential to significantly expand the resource.
The Blue Spec deposit, the most advanced resource within the Blue Spec Shear gold project, is at the development stage and is currently the subject of an advanced diamond drilling programme targeting a revised JORC resource at the deposit of at least 300,000 ounces gold and 7,000 tonnes of contained antimony to underpin a high-grade, low cost underground mining operation over an initial 5 year mine life.
Concurrently, Northwest is continuing pre-feasibility studies in relation to the development of the high-grade Blue Spec underground deposit, including reviewing de-watering options, evaluating the existing tailings storage facility on site and continuing with environmental assessments.
Northwest has received interest from a number of companies who have expressed interest in participating in development of the Blue Spec deposit as the first stage of a broader regional development strategy for the Nullagine goldfield.
There can be no assurance that any of these discussions will result in a proposal acceptable to Northwest.