Current Development
Northwest is focused on developing its core Blue Spec Shear high grade gold-antimony deposits into one of the highest grade gold underground mining centres in Australia.
In recent times, a number of Australian mining companies have proved the robust economics of high-grade narrow vein gold mining. These companies include Dominion Mining (Challenger), Avoca Resources (Trident), Silverlake Resources (Daisy Milano) and Northern Star Resources (Paulsens). These high-margin operations are characterised by modest resources and reserves on start-up with mined ounces replaced by additional resources confirmed at depth from underground drilling platforms.
A combined Blue Spec-Golden Spec operation
Northwest is currently planning an initial underground operation based on a combined Blue Spec-Golden Spec mine which has a current total resource inventory of 329,000 oz @ 20.7g/t & 9,000t Sb with strong potential to increase both the size and overall grade of the resources. Northwest is targeting over 1,200 OPVM in production (excluding antimony credits) and a mining rate of 100,000 TPA.
A combined Blue Spec-Golden Spec operation provides scale and operational synergies which have not been realised in the past due to the fact the mines were mined independently in different eras.
The previous mining experience gained at both mines will reduce start-up operational risks and the conceptual decline design to access both deposits will provide an excellent underground exploration platform over the 950m between Blue Spec and Golden Spec to enable exploration for further high-grade shoots between the deposits.
Northwest has commenced discussions with a number of experienced underground mining contractors to participate in the underground development of the combined Golden Spec - Blue Spec deposits.
Northwest is progressing through the environmental and heritage permitting process for the project and does not expect any significant delays to the development timetable to occur through this process.
Processing options
Northwest has a CIP treatment plant on site which was built in 1986 and which is currently configured to process 38,000t per annum but which has a comminution circuit rated to 100,000t per annum together with ancillary buildings.
An engineering appraisal of the existing treatment plant has been undertaken by Como Engineers to assess the feasibility of refurbishing the plant. In addition, a process flow sheet and plant design for the treatment of the gold-antimony mineralisation on the Blue Spec Shear has been prepared.
A final decision on how ore won from Blue Spec – Golden Spec will be processed is still to be made with other options for off-site treatment at Millennium Mining’s 1.5 MTPA Golden Eagle plant a further possibility.
Project infrastructure
The project is well served by existing and proposed infrastructure.
- This includes a granted water licence and borefield located 15kms east of the Golden Spec deposit which will provide sufficient water for the proposed scale of the operation.
- Horizon Power, a Western Australian State Government-owned power company has commissioned two hybrid solar-diesel power station at Nullagine. The ground-mounted system (with its sister plant at Marble Bar) is the largest of its kind in Australia. The power station presents Northwest with a potential source of low cost, environmentally friendly renewable power for the project.
- The Nullagine airstrip by currently being modernized and extended by Millennium Minerals to accommodate FIFO commercial charter flights from Perth.