Profile

Successful mineral exploration companies are characterised by their ability to secure first-class landholdings, attract and retain high calibre management and by aggressive, innovative and successful exploration. Northwest’s achievements in the short period since listing on the ASX in December 2004 demonstrate that the company possesses these characteristics.

Northwest’s objectives are:

to be recognised as an innovative and successful gold explorer with a track record of discovery; and
to develop into an emerging high-grade gold producer from projects which will have significant additional exploration potential.

Northwest believes that the results from its extensive drilling and other generative exploration activities carried out during 2005 and 2006 will result in new high-grade gold discoveries and sustained resource growth during 2007.

Projects

Northwest is a focused gold explorer. The company’s project areas are all located within the Nullagine Goldfield in the eastern Pilbara of Western Australia.

Northwest’s board and management strongly believe that as a result of concentrated exploration over the past two years the Nullagine Goldfield is emerging as a significant new mineral province and in the near future will become Australia’s newest gold producing region.

At an early stage Northwest recognized the under-developed nature of the Nullagine Goldfield. Historical exploration efforts in the Goldfield, whist successful, were generally uncoordinated and variable involving sporadic, shallow drilling coverage limited to areas of historic workings. This haphazard exploration history has provided Northwest with an opportunity to apply advanced targeting techniques and modern systematic exploration to projects boasting multiple areas of virgin near-surface resource potential.

Northwest holds an excellent land position in the Nullagine Goldfield. By size, Northwest is the second largest landholder in the Goldfield. More importantly, Northwest’s tenements cover a substantial part of the two geological structures known to host significant gold mineralization in the Goldfield.

Exploration Focus on High-Grade Gold

Currently, Northwest’s exploration is focused within the established high-grade Blue Spec Shear Project. The project has a JORC resource at two underground deposits of 190,000 oz gold at an average undiluted grade exceeding 43 g/t Au. The profitable economics of high grade underground vein mining are well established. The advantage of high grade gold mines is that they produce more gold at lower costs resulting in increased project cash flows and earnings which translates into greater shareholder wealth. Please follow this link for more details about the Blue Spec Shear Project .

Northwest’s regional goldfield projects include the Camel Creek Project, Bridget Creek Project and the Distant Ridge Project which vary from grass roots exploration to established JORC resources at the Camel Creek Project.

Approach to Exploration

Successful exploration is the key to achieving significant and sustainable shareholder wealth. Northwest’s exploration approach combines:

Using the best people – Combining our own highly skilled team with leading consultants in the fields of structural and geochemical geology
Employing the best exploration techniques – Applying the innovative exploration techniques and rigorous technical evaluation used by the “majors”
Very high in-ground expenditure – Over 60,000m of RC and diamond drilling were completed in calendar years 2005 and 2006. No junior gold explorer of Northwest’s size has a more active exploration programme.
Economic discipline – Acknowledging that exploration can create as well as destroy value, Northwest is focused on ensuring very high resource/reserve conversion rates by applying staged economic evaluation throughout the development phase of exploration

Please follow this link for more information on Northwest's Approach to Exploration .

Project Interests

At the time of the company’s ASX listing in December 2004, Northwest acquired its majority 65% interest in the portfolio of tenements comprising the Blue Spec Shear Project and the Camel Creek Project. Through its majority control, Northwest has the right to determine the level and timing of all exploration expenditure on the tenements. Northwest has no minimum exploration expenditure obligation on the tenements (other than keeping the tenements in good standing). Northwest has a pre-emptive right to acquire the 35% minority interest in the tenements.

In August 2005, Northwest applied for and was granted sole ownership of the portfolio of tenements comprising the Bridget Creek Project and the southern and eastern extensions to the Camel Creek Project.

In May 2006, Northwest secured exclusive exploration rights over a portfolio of tenements to the north of the Blue Spec Shear together with an option to purchase them. The southern tenements, adjacent to the Blue Spec Shear Project, contain the Red Ribbon Shear have been incorporated into the Blue Spec Shear Project. The northern tenement forms the Distant Ridge Project. The period of exclusive exploration is three years however Northwest can withdraw from the exploration agreement at any time. Northwest has the right to determine the level and timing of all exploration expenditure on the tenements. There is no minimum exploration expenditure obligation on the tenements (other than keeping the tenements in good standing). Under the terms of the option, Northwest can purchase a 100% interest in the tenements at any time prior to May 2009. The purchase price for the tenements is to be agreed at the time Northwest exercises its option and if no agreement can be reached, the purchase price will be the fair value of the tenements as determined by an independent valuer.

Page last updated: 29.01.2007