On March 31, 2011, NWM Mining Corporation (TSX VENTURE: NWM)(CVE: NWM) announced that air-track drilling at the Campamento Zone of the La Jojoba property has returned numerous high-grade gold intercepts. The key highlight of the drill results was a three-meter interval of 11.15 g Au/t at the surface of drill hole Camp-65, which is located 200 meters south of four other drill intercepts of 3.0 to 3.4 meters each, ranging between 3.0 to 5.24 g Au/t. The Campamento area is situated about one kilometre southwest of the Northeast Zone of the La Jojoba property.
The Northeast Zone (one of the current known deposits) hosts an NI 43-101 compliant Mineral Reserve of 193,489 ounces (proven and probable) of gold and covers an area of 300m by 150m on surface. The Campamento Zone covers an area which is almost 1,500m in strike length and has a width of some 900m. The relative size of the land area of Campamento Zone and the high grade gold intercepts found at surface makes this discovery a significant event for NWM as it is looking to expand the resource inventory. The company is waiting on additional drill results from the current exploration program.
If the company were to continue its success in finding mineralization in other targets in Campamento zone, we believe this could be a potential game changer for NWM Mining (TSX VENTURE: NWM)(CVE: NWM). NWM could expand the current resource inventory to well over a million ounces from the current 384,000 ounces of gold reserves if the early results from Campamento continue. The company also has identified other targets on the project based on geochemical work.
The company is also working to get production ramped up in their Lluvia de Oro project. The company has an experienced operations team on the ground for the mine production and is working to get production ramped up. This along with the significant exploration success in the Campamento zone and other known targets would make NWM a compelling acquisition target as the new resource calculation could take its inventory past the one million ounce level, a key benchmark that helps attract interest from other miners in the area.
NWM Mining Corporation is based in Sonora State, Mexico and is in the same neighbourhood as Capital Gold Corp (TSX: CGC, AMEX: CGC). Recently Gammon Gold Inc (TSX: GAM) (NYSE: GRS) has made a $288 million takeover bid to acquire Capital Gold Corp (TSX: CGC) (AMEX: CGC). Earlier Timmins Gold Corp (TSXV: TMM) (CVE:TMM) also based in Sonora State, had tried to acquire Capital Gold Corp (TSX: CGC) (TSE: CGC). There is no clear winner in the bid to acquire Capital Gold Corp so far. Sonora State also hosts the biggest gold mine in Mexico, La Herradura, which is operated as a joint venture between Newmont Mining Corporation (NYSE:NEM) and Mexican mining conglomerate Industrias Penoles SA de CV. Based on the attractive neighbourhood, near term production and rising resource inventory, we believe NWM has the potential to be an acquisition target possibly over the next 12-18 months.
To learn more about NWM Mining Corporation, see our research reports on NWM available HERE.
To view our video interview with Mr. Chris Berlet, CEO of NWM Mining Corp visit the CEO Interview page HERE.
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