Mulga Tank Resource Tops 5.3 Million Tonnes of Contained Nickel in Landmark Estimate
Western Mines Group has announced a landmark Mineral Resource Estimate for its Mulga Tank project, defining Australia’s largest nickel sulphide deposit with over 5.3 million tonnes of contained nickel. The company has secured government grants and raised capital to accelerate drilling and metallurgical testing.
- Mulga Tank Mineral Resource totals 1,968 million tonnes at 0.27% nickel
- Contains 5.3 million tonnes of nickel, plus significant cobalt, copper, and platinum group elements
- Resource independently reviewed and classified under JORC 2012 standards
- Raised $1.287 million and secured $440,000 in government grants for further drilling
- Exploration drilling recommenced in July 2025 with ongoing metallurgical test work
A Major Milestone for Western Mines
Western Mines Group Ltd (ASX – WMG) has reached a significant milestone with the completion of its first Mineral Resource Estimate for the Mulga Tank Ni-Co-Cu-PGE Project. This estimate reveals what the company believes to be the largest nickel sulphide deposit in Australia, positioning Mulga Tank among the top ten nickel sulphide resources globally.
The Mineral Resource totals an impressive 1,968 million tonnes grading 0.27% nickel, containing approximately 5.3 million tonnes of nickel metal alongside substantial quantities of cobalt, copper, and platinum group elements. The resource is classified into 565 million tonnes of Indicated and 1,403 million tonnes of Inferred categories, all reported in accordance with the rigorous JORC 2012 code and independently reviewed by ERM Australia Consultants.
Strategic Funding and Exploration Plans
To support the next phase of exploration, Western Mines successfully raised $1.287 million in May 2025 and secured two Exploration Incentive Scheme grants totaling $440,000 from the Western Australian government. These funds are earmarked for a combination of reverse circulation and diamond drilling programs, which recommenced in July 2025.
The company’s exploration strategy focuses on expanding the known mineralisation, which remains open in multiple directions, and targeting higher-grade zones, including basal massive sulphide accumulations. This approach is informed by detailed geological modelling and the frequent discovery of sulphidic melt pockets throughout the Mulga Tank Complex, suggesting a highly prospective system.
Advancing Metallurgical Understanding
Complementing the drilling, Western Mines is progressing metallurgical test work on core samples from diamond hole MTD029. Initial flotation tests have been promising, with ongoing phases designed to refine processing flowsheets for nickel concentrate production. These efforts are critical to unlocking the economic potential of the deposit and will be closely watched by investors and industry observers.
Broader Project Portfolio and Financial Position
Beyond Mulga Tank, Western Mines maintains a diversified portfolio including the Jasper Hill gold project, the Youanmi gold project, and the Melita and Pinyalling projects targeting gold, copper, lead, zinc, and lithium. The company recently surrendered the Pavarotti Project tenements but retains a royalty interest, reflecting a strategic focus on its core assets.
Financially, Western Mines ended the quarter with $1.56 million in cash, supported by a capital raise and government grants, providing an estimated 4.3 quarters of funding at current expenditure levels. The company continues to manage costs prudently amid a challenging nickel price environment, balancing resource development with financial discipline.
Looking Ahead
With a landmark resource now defined and exploration drilling underway, Western Mines is poised to advance Mulga Tank towards development. The coming months will be critical as new drilling results and metallurgical data emerge, potentially reshaping the company’s valuation and strategic outlook in the competitive nickel sulphide sector.
Bottom Line?
Western Mines’ defining of Australia’s largest nickel sulphide deposit sets the stage for a pivotal growth phase, with upcoming drilling and metallurgical results likely to shape its market trajectory.
Questions in the middle?
- How will upcoming drilling refine the resource and identify higher-grade zones at Mulga Tank?
- What will metallurgical test results reveal about the economic viability of nickel concentrate production?
- How might fluctuating nickel prices impact Western Mines’ development timeline and funding needs?
