Norwest Minerals (ASX: NWM) has announced the granting of Mining Lease 52/1085 for its Bulgera Gold Project in Western Australia. This lease covers 2,435 hectares, including the historical Bulgera mining center. The Bulgera ore was previously mined and processed at the Plutonic gold plant until 2004. The plant, currently owned by Catalyst Metals Limited (ASX: CYL), is situated just 50 kilometers west of the Bulgera Gold project. This proximity facilitates potential future processing agreements. The current gold mineral resource estimate (MRE) for Bulgera stands at 6.3 million tonnes at 1.07g/t gold, totaling 217,600 ounces. This estimate was last updated in 2021-22 when gold prices were significantly lower, around A$2500 per ounce.
With gold prices now exceeding A$5000 per ounce, Norwest is actively pursuing an increase in the gold MRE. The company plans to revise the gold resource model and conduct further resource drilling within the newly granted mining lease. This drilling will target near-surface gold zones around the historic mining center, targets along the strike of the mining center identified by surface geochemistry, and deeper gold lodes. Norwest also intends to assess the economic viability of its +2 million tonne oxide low-grade stockpiles, previously deemed uneconomic when gold was valued at A$16 per gram.
Given the current market volatility, Norwest has opted to defer its final decision on a proposed capital raising. This allows the company to assess the impact of the recent developments and ensures all shareholders have the opportunity to participate in any future capital raising initiatives. CEO Charles Schaus emphasized that the granted mining lease solidifies the company’s plans for cash flow generation. He also stated that the rising gold price has significantly enhanced the Bulgera project economics, with the company evaluating options to exploit this valuable gold asset for the benefit of all stakeholders.
