Western Mines Unveils Australia’s Largest Nickel Sulphide Resource at Mulga Tank
Western Mines Group has reported a landmark Mineral Resource Estimate for its Mulga Tank project, defining the largest nickel sulphide deposit in Australia with over 5.3 million tonnes of contained nickel. The resource remains open for expansion, supported by ongoing metallurgical testing and government-backed drilling funding.
- Mulga Tank Mineral Resource totals 1.968 billion tonnes at 0.27% nickel
- Contained metals include 5.3Mt Ni, 257Kt Co, 161Kt Cu, and 1.1Moz Pt+Pd
- Resource classified as Indicated and Inferred, open in multiple directions
- Ongoing metallurgical test work to refine nickel concentrate processing
- Received $440,000 in WA government grants for further drilling
A Milestone for Western Mines
Western Mines Group Ltd (ASX: WMG) has marked a major milestone in its exploration journey with the completion of its first Mineral Resource Estimate (MRE) for the Mulga Tank Ni-Co-Cu-PGE Project in Western Australia. The company’s announcement on 30 April 2025 reveals a globally significant nickel sulphide deposit, now recognised as the largest of its kind in Australia.
The MRE, prepared in accordance with JORC 2012 standards and independently reviewed by ERM Australia Consultants, estimates a total resource of 1.968 billion tonnes grading 0.27% nickel. This translates into a substantial inventory of contained metals: 5.3 million tonnes of nickel, 257,000 tonnes of cobalt, 161,000 tonnes of copper, and over 1.1 million ounces of platinum and palladium combined.
Resource Details and Geological Insights
The resource is split into 565 million tonnes classified as Indicated and 1.403 billion tonnes as Inferred, both open in multiple directions, suggesting significant upside potential. The mineralisation is hosted within a large ultramafic complex in the under-explored Minigwal Greenstone Belt, approximately 190km east-northeast of Kalgoorlie.
Deep diamond drilling, notably hole MTD029, has confirmed extensive disseminated nickel sulphide mineralisation over more than 1,200 metres, with multiple higher-grade intervals. These results underpin the company’s thesis of a robust magmatic nickel sulphide system with potential for both open-pit and deeper massive sulphide targets.
Advancing Metallurgical Testing and Exploration
Western Mines is progressing metallurgical test work on core samples from MTD029, aiming to optimise nickel concentrate production through flotation methods. Phase 2 test results are underway, with the company prioritising this work in the first half of 2025 to support future development scenarios.
Further exploration is supported by the recent award of two Exploration Incentive Scheme grants totaling $440,000 from the Western Australian government, earmarked for additional drilling at Mulga Tank. This funding will enable the company to refine resource extents and target higher-grade zones, particularly along the western margin where mineralisation may be shallower.
Broader Portfolio and Financial Position
Beyond Mulga Tank, Western Mines continues to advance its gold-focused Jasper Hill and Youanmi projects, alongside other base metal and lithium prospects such as Melita, Pinyalling, and Pavarotti. Exploration activities include geophysical surveys, soil sampling, and reconnaissance fieldwork, positioning the company well across multiple commodities.
Financially, Western Mines reported a cash balance of $0.65 million at quarter-end, with exploration expenditure of $495,794 during the period. The company is actively pursuing capital through royalty and streaming arrangements to sustain its aggressive exploration and development agenda.
Strategic Implications
The declaration of Australia’s largest nickel sulphide resource places Western Mines in a strong position within the global nickel market, critical for the burgeoning electric vehicle and battery sectors. The scale and grade of Mulga Tank, combined with ongoing metallurgical advancements and government support, could attract strategic partnerships or investment as the company moves toward resource development.
Bottom Line?
Western Mines’ Mulga Tank resource milestone sets the stage for a transformative phase, but capital and metallurgical clarity remain key hurdles ahead.
Questions in the middle?
- How will ongoing metallurgical test results impact the economic viability of the Mulga Tank deposit?
- What are the timelines and targets for upcoming drilling funded by the Exploration Incentive Scheme grants?
- How successful will Western Mines be in securing royalty or streaming deals to fund further development?
