Norwest Targets 217,600 oz Gold Resource Expansion with $4.85M Entitlement Offer
Norwest Minerals Limited has launched a $4.85 million entitlement offer to fund an aggressive drilling campaign and mining option review at its Bulgera Gold project, aiming to significantly expand its gold resource amid soaring gold prices.
- 1-for-1 entitlement offer to raise $4.85 million, $3 million underwritten
- Bulgera Gold project holds 217,600 oz gold at 1.07 g/t, with potential for significant resource growth
- New Mining Lease granted covering 2,435 hectares including historic mining centre
- Investigation into economic potential of 2.2 million tonnes of low-grade gold stockpiles
- Directors and major shareholders committed to fully subscribe to their entitlements
Capital Raise to Accelerate Exploration
Norwest Minerals Limited (ASX: NWM) has announced a non-renounceable entitlement offer priced at $0.01 per share, aiming to raise approximately $4.85 million before costs. The offer is partially underwritten to $3 million, with directors and major shareholders already committing $1.62 million to fully subscribe to their entitlements. This capital injection is earmarked to fund a comprehensive review of mining options and an aggressive drilling campaign at the Bulgera Gold project in Western Australia.
Bulgera Project Positioned for Resource Expansion
The Bulgera Gold project currently boasts a mineral resource estimate (MRE) of 6.3 million tonnes grading 1.07 grams per tonne gold, equating to approximately 217,600 ounces. This resource was last updated in 2022 based on drilling completed in 2021-22 when gold prices hovered around A$2,500 per ounce. With gold prices now exceeding A$5,000 per ounce, Norwest is targeting a substantial increase in the resource following the 2025 drilling campaign and a revision of the resource model, including lowering the cut-off grade to 0.3 g/t to reflect improved economics.
Mining Lease Granted, Enabling Timely Development
Crucially, Norwest has secured the Mining Lease M52/1085 from the Western Australian Department of Energy, Mines, Industry Regulation and Safety. The lease covers 2,435 hectares, encompassing the historic Bulgera mining centre. This approval clears the way for Norwest to commence drilling and mining activities promptly, subject to ongoing negotiations with the Marputu Aboriginal Corporation to ensure cultural heritage is respected and regulatory compliance is maintained.
Unlocking Value from Low-Grade Stockpiles
In addition to expanding the known resource, Norwest is investigating the economic viability of processing over 2.2 million tonnes of low-grade oxide stockpiles left from pre-2004 mining operations. Historically, material grading below 1 g/t was relegated to waste due to gold prices around A$16 per gram. With gold prices now more than tenfold higher, these stockpiles represent a potentially valuable secondary resource, which could be processed economically via simple load-and-haul operations to nearby gold plants.
Strategic Shareholder Support and Incentives
The entitlement offer includes one free attaching option for every new share issued, exercisable at $0.03 over three years, providing shareholders with additional upside potential. The offer price represents a 27.5% discount to the 15-day volume weighted average price, designed to encourage participation. Underwriters Chaleyer Holdings Pty Ltd and Fortress Minerals Limited provide financial certainty to the raise, with Fortress being an associate of director Yew Fei Chee. Directors have abstained from applying for shortfall shares to comply with ASX Listing Rules.
Looking Ahead
Norwest’s CEO Charles Schaus emphasised the transformative impact of the rising gold price on Bulgera’s project economics, highlighting the company’s ambition to significantly increase the gold resource and unlock value from previously uneconomic stockpiles. The forthcoming drilling campaign will test both near surface and deeper gold targets, including extensions of known lodes down to depths exceeding 700 metres. The results of this campaign will be pivotal in shaping Norwest’s development strategy and could materially enhance shareholder value.
Bottom Line?
Norwest’s capital raise and strategic drilling set the stage for a potential resource leap, but execution and market conditions will be key to unlocking Bulgera’s full value.
Questions in the middle?
- Will the 2025 drilling campaign confirm significant resource upgrades at Bulgera?
- How economically viable will the processing of low-grade stockpiles prove at current gold prices?
- What impact will negotiations with the Marputu Aboriginal Corporation have on project timelines?
