Kristie Batten: Could this be the most undervalued gold project in WA?

With a mining lease in place and over 200,000oz of gold in the ground, could Norwest’s Bulgera be the deepest value junior gold project in WA?

Norwest's Bulgera has a granted mining lease, over 200,000oz of gold and a stockpile of potentially rich waste. Pic: Supplied/Stockhead

One of Australia’s top mining journalists, Kristie Batten writes for Stockhead every week in her regular column placing a watchful eye on the movers and shakers of the small cap resources scene.

Gold explorer Norwest Minerals (ASX:NWM) has been flying under the radar but that might be about to change after a couple big weeks for the company.

The company has been reasonably low key, but the stars appear to be aligning, which should result in an increase in news flow in the coming months.

Norwest owns the Bulgera gold project in Western Australia’s Mid West region, situated on the same greenstone belt that hosts Catalyst Metals' (ASX:CYL) producing Plutonic gold mine about 40km away.

The company picked Bulgera up in 2019 for about $230,000 and Norwest CEO Charles Schaus believes it is the most undervalued gold project in WA.

Bulgera has a resource of 6.3 million tonnes at 1.07 grams per tonne gold for 217,600 ounces.

At a gold price of $5000 an ounce, that equates to more than $1 billion of gold in the ground – a tantalising prospect for a company with a market capitalisation of just $8.8 million as of Friday’s close.

When Catalyst started consolidating the Marymia belt around Plutonic, Norwest decided to apply for a mining lease for Bulgera.

After a two-year wait, that mining lease was granted last month.

“It’s a huge step toward production, because you can't move a tonne unless you have a mining lease,” Schaus told Stockhead.

Fresh eyes

Norwest hasn’t drilled a hole at Bulgera since 2021 and last completed a pit optimisation in 2022 when the gold price was around $2500/oz.

“When we modelled that mineralisation back in early 2022, there was a lot of what we call mineralised waste sitting between surface and 20m, and the model didn't capture that because it was considered waste,” Schaus said.

“Fast forward to 2025 and the gold price has doubled – all of that mineralisation is now economic.”

Last week, Norwest started the process of remodelling the mineralisation.

“We're going to see this big increase in near-surface tonnage,” Schaus said.

“We should run pit designs now at $4000 or $4500 and that is going to drive those pits deeper, but it's also going to grab all that new mineralisation sitting at the surface.”

Bulgera also hosts a 2.2Mt stockpile dating back to 2004, when the project was last mined.

Norwest believes the stockpile grades around 0.25-0.5g/t gold.

“From the late 1990s to 2004 there was about 440,000 tonnes of easy-to-grab higher-grade oxide taken from the Bulgera area and trucked down to the Plutonic mine to blend with their hard underground material,” Schaus said.

“In 2004, a tonne of material going at 1 gram was only worth $16. Now, a tonne going at 1 gram is worth $160.

“That 2.2 million tonnes of waste, at $160 a gram, one tonne of that may be worth $80 and you don't have to mine it, so we have that just sitting there.”

Norwest plans to weigh up processing options. While Plutonic is the obvious home for any ore from Bulgera, the high gold price means it can be trucked further.

Funded for drilling

Last week, Norwest launched a one-for-one non-renounceable entitlement offer to raise $4.85 million at 1c per share.

Major shareholders Chaleyer Holdings and Fortress Minerals are underwriting the offer to $3m, while directors and major shareholders have committed to take up their full allocations totalling $1.62m.

Schaus said the cash would allow the company to have a real crack at Bulgera in what will be the first meaningful work on the ground in years.

“While we're doing the work and announcing the new model and the new pit designs, we’ll also take that $4.85m and start drilling,” he said.

“We'll be drilling near the surface to bring the inferred to indicated, bring the indicated to measured, but also, sitting below that big oxide zone are six lodes.

“Basically, the weathering of these lodes has come together, made this big oxide area, and then below we have these lodes that basically extend down below.

“We've only drilled one of the lodes, which we coincidentally called the Bulgera lode, and we drilled that down to 550m back in 2021.

“It's a shear zone. It kept going – and that holds 89,000 ounces by itself, so we've still got another five to test.”

The company has all approvals in place to drill and will kick off the program shortly.

At Stockhead, we tell it like it is. While Norwest Minerals is a Stockhead advertiser, it did not sponsor this article.

Originally published as Kristie Batten: Could this be the most undervalued gold project in WA?