Bulgera Gold Project Strikes Gold with 33% Resource Increase
Norwest Minerals (ASX: NWM) has announced a significant upgrade to its Bulgera Gold Project, with total gold resources surging by 33% to 288,400 ounces. This substantial increase of 70,800 ounces stems from comprehensive remodeling work and inclusion of previously undefined gold zones.
Major Resource Expansion Validates Project Potential
The revised Mineral Resource Estimate (MRE) now totals 8.4 million tonnes at 1.07 g/t gold, a substantial improvement from the previous estimate. This expansion is particularly noteworthy as it comes at a time when gold prices have doubled to approximately A$5,000/oz since the company's last modeling exercise in March 2022.
"I'm incredibly excited to announce a substantial 33% increase in our Bulgera Gold Mineral Resource Estimate, bringing the total to an impressive 288,400 ounces. This significant upgrade, adding 70,800 ounces, is a direct result of our team's meticulous reinterpretation of the project's 3D geological model and the successful identification of new gold zones within the greater Mining Lease area," stated CEO Charles Schaus.
The resource update has identified additional gold mineralization along three key areas:
- Margins of previously identified gold-bearing shear zones
- Surrounding large areas of near-surface oxide
- Within previously undefined gold prospects beyond the historic Bulgera mining centre
Understanding the Resource Classification
The updated resource is broken down as follows:
Category | Tonnage (Mt) | Gold Grade (g/t) | Gold (ounces) |
---|---|---|---|
Indicated Resources | 3.43 | 0.95 | 105,020 |
Inferred Resources | 4.96 | 1.15 | 183,400 |
Total Resources | 8.39 | 1.07 | 288,400 |
The higher proportion of inferred resources is due to the wide spacing of deep RC and diamond drill holes, which limits the number of gold assays captured during modeling. This indicates significant potential for future resource upgrades through additional infill drilling.
What is Mineral Resource Modeling?
For investors new to resource estimation, mineral resource modeling is the process of creating a three-dimensional representation of mineralization within a deposit. This involves:
- Data Collection: Analyzing drill hole results, surface mapping, and structural information
- Wireframing: Creating 3D shapes that outline where mineralization occurs
- Block Modeling: Dividing the deposit into small blocks and estimating grade for each
- Classification: Categorizing resources by confidence level (Indicated vs. Inferred)
In the case of the Norwest Minerals Bulgera Gold Project, the resource upgrade came from reinterpreting this model with current gold prices in mind and incorporating areas previously not included in resource calculations.
Drilling Program to Further Expand Resources
Coinciding with this announcement, Norwest Minerals has commenced a new reverse circulation (RC) drilling program at the Bulgera Gold Project. The 11-hole (2,620 meter) program will target mineralization down-dip from both known and newly modeled gold-bearing shear zones.
The company believes there is potential for one or more major gold discoveries, particularly given the consistent presence of higher gold grades below 100 vertical meters along the Bulgera gold trend. This is especially significant considering Norwest's 2021 success when drilling identified a lode containing 1.38 million tonnes at 2 g/t for 89,000 ounces of gold.
"What makes this news even more compelling is that it coincides perfectly with the recommencement of our reverse circulation (RC) drilling program at Bulgera. This drilling is strategically designed to target mineralization down-dip from both known and newly modelled gold-bearing shear zones. Upon completion of this drilling, we will undertake another revision of the Bulgera model with a further increase to our gold MRE anticipated," noted Mr. Schaus.
Strong Metallurgical Performance Supports Development Potential
Previous metallurgical testing on Bulgera ore samples demonstrated excellent gold recoveries:
- 95.6%, 92.6% and 98.3% overall gold recoveries from composite samples
- Significant gravity-recoverable gold component (28.8-47.5%)
- Fast leach kinetics with the majority of gold leaching in the first 2-4 hours
- Low reagent consumption rates
These favorable metallurgical characteristics enhance the project's economic potential and processing flexibility.
Investment Perspective: Why the Bulgera Gold Project Matters
The Bulgera Gold Project represents a compelling investment opportunity for several reasons:
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Resource Growth Potential: The 33% resource increase demonstrates that the project remains underexplored, with multiple targets identified for the current drilling program.
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Favorable Gold Price Environment: With gold prices at historically strong levels, the economic potential of the project continues to improve.
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Strategic Location: The project is situated in the northeast corner of the Plutonic Well Greenstone Belt, a well-established gold-producing region in Western Australia.
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Exploration Upside: Following the Bulgera campaign, the drilling rig will move to the company's Marymia East project to test several new high-priority gold targets.
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Metallurgical Advantages: Strong recovery rates and favorable processing characteristics enhance the project's development potential.
Why Investors Should Follow Norwest Minerals
Norwest Minerals has positioned itself for significant growth with its expanding Bulgera Gold Project. The substantial resource increase, coupled with the commencement of a new 5,000-meter drilling campaign at Ferk targeting further resource growth, provides multiple near-term catalysts for the company.
For investors seeking exposure to gold in a stable mining jurisdiction, Norwest offers an attractive combination of established resources and exploration upside. Furthermore, the company's methodical approach to resource expansion and commitment to unlock the full potential of the Bulgera Gold Project demonstrates a clear path to value creation.
With multiple drilling results expected in the coming months and potential for further resource upgrades, Norwest Minerals represents an opportunity to invest in a growing gold resource during favorable market conditions for precious metals. Additionally, recent high-grade gold discovery at Fortitude North and a 73% gold resource increase at Livingstone by other companies in the region highlight the significant potential of gold projects in Western Australia.
The company's progress at Bulgera parallels other successful resource companies that have secured funding for rare earths project development, indicating strong investor interest in the resource sector.
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