Norwest Faces Funding and Execution Challenges Despite Bulgera Lease and Exploration Wins
Norwest Minerals has been granted a key mining lease for its Bulgera Gold Project and launched a $4.85 million entitlement offer to fund aggressive resource drilling and mining evaluations. Meanwhile, exploration at West Arunta reveals promising titanium and base metal intersections, underpinning the company’s growth ambitions.
- Mining Lease 52/1085 granted for Bulgera Gold Project covering 2,435 hectares
- Current Bulgera gold resource estimate at 217,600 ounces with plans for significant expansion
- West Arunta drilling intersects thick, high-grade titanium zones and base metals
- $4.85 million underwritten entitlement offer announced to accelerate Bulgera drilling
- Government co-funding secured for West Arunta drilling and geophysical surveys
Bulgera Gold Project: A New Chapter Begins
Norwest Minerals Limited (ASX: NWM) marked a pivotal milestone this quarter with the granting of Mining Lease 52/1085 for its flagship Bulgera Gold Project in Western Australia's Mid-West region. The lease covers a substantial 2,435 hectares, including the historic Bulgera mining centre, positioning Norwest to advance from exploration to potential mining operations.
The current Mineral Resource Estimate (MRE) at Bulgera stands at 6.3 million tonnes grading 1.07 grams per tonne gold, equating to approximately 217,600 ounces. With gold prices now exceeding A$5,000 per ounce, Norwest is aggressively targeting resource expansion through a comprehensive drilling campaign and a revision of the 2021 resource model. The company is particularly focused on near-surface gold zones around the historic mining centre and deeper lodes extending beyond 100 metres, which have shown promising grades in previous drilling.
Adding to the project's economic potential is the reassessment of over 2 million tonnes of oxide low-grade stockpiles, historically considered waste due to lower gold prices. The dramatic rise in gold prices has transformed these stockpiles into a potentially valuable resource, with Norwest planning grade-control drilling and metallurgical testing to evaluate processing options.
Exploration Success at West Arunta
Beyond Bulgera, Norwest's West Arunta Project delivered encouraging exploration results, particularly at the Malibu Prospect where drilling intersected thick zones of highly anomalous titanium mineralisation. Highlights include intervals such as 33 metres at 2.0% TiO₂ and 21 metres at 3.0% TiO₂, indicating a significant titanium-bearing sedimentary system within a large graben structure. These findings open up a new critical minerals opportunity for the company, complementing its gold and base metals focus.
Additionally, the Dales Gossan Prospect revealed wide zones of silver, lead, zinc, and copper mineralisation, consistent with a Volcanogenic Massive Sulphide (VMS) system. Norwest plans to conduct a 1.2-kilometre induced polarization (IP) geophysical survey to refine drill targets along the Sandman fault, which hosts this mineralisation.
Capital Raising and Government Support
To fund its ambitious exploration and resource expansion programs, Norwest announced a non-renounceable entitlement offer to raise $4.85 million, underwritten to $3 million. The capital will primarily support the Bulgera drilling campaign and evaluation of mining options following the mining lease grant. The offer includes one free attaching option per new share, exercisable at 3 cents within three years.
Norwest also secured co-funding from the Western Australian Government’s Exploration Incentive Scheme (EIS) for drilling and geophysical surveys at West Arunta, covering up to 50% of direct costs. This support underscores the strategic importance of Norwest’s critical minerals and base metals exploration in the region.
Other Project Updates and Financial Position
Exploration at the Marymia East Project is set to commence following heritage studies, targeting copper and zinc mineralisation identified through recent rock chip sampling. Meanwhile, the Bali Copper Project and Marriott Nickel Project saw no field activity this quarter, with Norwest continuing to review exploitation options.
Financially, Norwest reported a cash balance of $275,000 at quarter-end, reflecting ongoing exploration expenditure. Payments to related parties amounted to $55,000 for director fees and salaries. The company’s ability to continue operations hinges on the successful completion of the entitlement offer and ongoing government support.
Overall, Norwest Minerals is advancing multiple fronts with a clear focus on expanding its gold resources at Bulgera while unlocking critical minerals potential at West Arunta. The coming months will be critical as drilling results and capital raising progress shape the company’s trajectory.
Bottom Line?
Norwest’s newly granted mining lease and capital raise set the stage for a transformative phase, but execution risks and market conditions will test its growth ambitions.
Questions in the middle?
- How will the upcoming Bulgera drilling results impact the company’s resource and valuation?
- What is the timeline and likelihood of successfully processing the low-grade stockpiles economically?
- Can Norwest secure additional funding or partnerships to sustain its exploration momentum beyond the entitlement offer?
