(MENAFN- ProactiveInvestors - Australia) Northwest Resources (ASX: NWR) is attracting substantial overseas interest in securing the offtake rights to future concentrate production from the Blue Spec Shear Gold-Antimony Project in Western Australia.
The company is progressing discussions with selected parties and due diligence in Australia by potential offtake partners is planned to begin from January.
Northwest is aiming to bring the Blue Spec and Gold Spec deposits into production in 2013 as a high-grade narrow vein underground mining operation producing a gold enriched antimony concentrate for direct sale.
The company then plans to expand the project beyond its initial five year mine life through the discovery of additional high grade deposits along the highly mineralised Blue Spec Shear Zone.
On path to resource upgrade
Northwest is currently undertaking an infill diamond drilling program at the Blue Spec and Gold Spec deposits to increase the Indicated component of the current resource.
The resource at Blue Spec and Gold Spec currently stands at 646,000 tonnes at 15.8 grams per tonne (g/t) gold and 1.2% antimony for 328,000 ounces of gold and 7,900 tonnes of antimony.
Drilling is designed to improve the overall confidence in the Blue Spec and Gold Spec geological models and enable a maiden Ore Reserve to be prepared as part of the ongoing Definitive Feasibility Study for the project.
To date, the six deepest holes of the Blue Spec program have been completed and despatched to ALS Laboratories Perth for assaying.
Importantly, all holes have intersected the main Blue Spec Shear ore zone as planned.
The Blue Spec holes have also consistently intersected a previously undefined ore zone within a splay shear about 20 metres to the north of the Blue Spec Shear ore zone.
Further investigation of this new splay shear, including a review of core from earlier diamond drilling programs, will be undertaken to evaluate its potential to add to the resource inventory at Blue Spec.
The rate of completion of holes will now increase as shallower holes at Blue Spec and the Gold Spec holes are undertaken. Assays for the initial holes are expected in January.
New appointments
Northwest has made a number of new senior appointments to the management team.
David Lyon has been appointed as geology manager. He has over 14 years in the mining industry with particular experience in high grade, narrow vein underground gold operations.
Since moving to Western Australia in 2008, Lyon has held senior roles with Newmont Asia Pacific managing the resource development team at the Jundee underground gold operation.
Prior to this, he worked for several years in a special projects role at Goldcorp's flagship underground gold mining operation in Red Lake, Ontario.
Greg Hardes has been appointed as occupational health, safety and environment manager.
Hardes has over 20 years experience in the mining industry having held a number of senior positions including OHS manager for Silver Lake Resources (Gold - Murchison Project), Apex Minerals
(Gold - Wiluna), Aditya Birla (Copper - Nifty) and registered manager of Stirling Resources (Gold â€" Daveyhurst/Mt Ida).
Peter Stockman has been appointed as a senior geological adviser.
Stockman has over 25 years experience gained in exploration, resource development and operational roles across a broad range of commodities.
He is currently employed by Ravensgate as a principal consultant.
Prior to joining Ravensgate, Stockman has held a number of senior technical or geological management positions with several companies including Sinosteel Midwest, Placer Dome (Tanzania), Golden Star Resources, WMC Resources, Oxiana, ERA (North Ltd), Newcrest, and most recently, Global Advanced Metals.
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