Mulga Tank Expansion Raises Questions on Resource Growth and Mining Plans

• Phase 4 drilling extends nickel sulphide mineralisation beyond existing resource shell
• Hole MTRC066 delivers one of the best shallow nickel intersections to date
• Broad zones of disseminated nickel sulphides with elevated copper and precious metals
• Results support potential for large-scale, open-pitable nickel sulphide deposit
• Follow-up drilling planned to define starter-pit material and target higher-grade zones

Exploration Breakthrough at Mulga Tank

Western Mines Group Ltd (ASX – WMG) has unveiled promising assay results from the first four reverse circulation drill holes of its Phase 4 program at the Mulga Tank Project, located in Western Australia's Eastern Goldfields. These results mark a significant step in expanding the known nickel sulphide mineralisation footprint within the Minigwal Greenstone Belt, with all holes intersecting broad zones of disseminated nickel sulphides beyond the current Mineral Resource boundaries.

Standout Hole MTRC066

The highlight of this drilling campaign is hole MTRC066, which returned an impressive continuous intersection of 269 meters grading 0.33% nickel, accompanied by elevated cobalt, copper, and platinum group elements. Notably, this hole includes a shallow upper section of 82 meters at 0.43% nickel and several higher-grade intervals exceeding 1% nickel, including a peak 1-meter segment grading 1.41% nickel. Positioned over 320 meters from the nearest previous drill hole, MTRC066 opens a new exploration front for potential starter-pit material that could underpin early mining phases.

Expanding the Resource Envelope

The four holes; MTRC064 to MTRC067; were strategically drilled approximately 300 meters south of prior drilling, targeting untested areas of the Mulga Tank Ultramafic Complex. Each hole intersected significant disseminated nickel sulphide mineralisation, with geochemical signatures indicating active magmatic sulphide processes. Elevated levels of copper and precious metals alongside high sulphur-to-nickel ratios reinforce the potential for economically recoverable nickel sulphides. These findings suggest the mineral system is more extensive than previously modelled, warranting further drilling to incorporate these zones into an updated Mineral Resource Estimate.

Strategic Implications and Next Steps

Western Mines’ Managing Director, Dr Caedmon Marriott, emphasized the importance of these results in validating the company’s belief that the best mineralisation at Mulga Tank is yet to be discovered. The focus now shifts to delineating 2-3 years of starter-pit material grading above 0.4% nickel, which is critical for optimising a future mine plan. The company plans follow-up drilling to infill and extend these promising zones, with an eye toward identifying higher-grade pods within the broader disseminated system. This approach aligns with the goal of developing a globally significant, large-scale, open-pitable nickel sulphide deposit.

Broader Context and Market Position

Mulga Tank is already recognised as Australia’s largest nickel sulphide deposit, with a recent Mineral Resource Estimate of over 5 million tonnes of contained nickel. The new assay results reinforce Western Mines’ position in the nickel market, a metal critical to the global transition to clean energy technologies. As nickel demand intensifies, discoveries like these could enhance supply security and add considerable value to the company’s portfolio.

Bottom Line?

Western Mines’ latest drilling success at Mulga Tank sets the stage for resource expansion and potential early mining opportunities.

Questions in the middle?

• How will Western Mines integrate these new assay results into an updated Mineral Resource Estimate?
• What is the timeline and scale for the planned follow-up drilling to target higher-grade zones?
• How might these results influence Western Mines’ strategic positioning amid rising nickel demand?