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Mulga Tank Drilling Hits 900m Depth; $620K EIS Grants Fuel Next Phase

Mining By Maxwell Dee 3 min read

Western Mines Group advances deep diamond drilling and a high-powered electromagnetic survey at its Mulga Tank project, leveraging co-funded grants to target high-grade nickel sulphide deposits.

  • Deep diamond tail hole EIS9 reaches ~900m, targeting basal zone anomalies
  • High-powered Moving Loop ElectroMagnetic (MLEM) survey underway over Panhandle komatiite
  • Seven co-funded drill holes planned for early 2026 based on survey results
  • Exploration Incentive Scheme grants total $620,000 supporting drilling programs
  • Mulga Tank hosts Australia’s largest nickel sulphide deposit with over 5Mt contained nickel

Exploration Momentum Builds at Mulga Tank

Western Mines Group Ltd (ASX, WMG) is pushing forward with its exploration campaign at the Mulga Tank Ni-Cu-Co-PGE Project in Western Australia’s Eastern Goldfields. The company has commenced a deep diamond tail drill hole, designated EIS9, which has now reached approximately 900 metres in depth. This hole extends a previous reverse circulation (RC) drill hole, MTRC009, which ended in mineralisation at 522 metres. By tailing off the existing hole, Western Mines is saving significant drilling time and costs while targeting a compelling magnetic and conductive anomaly within the basal zone of the Mulga Tank Ultramafic Complex.

The EIS9 hole is designed to test a hinge zone at the base of the western margin of the complex, where geophysical data indicate a potential sulphide-enriched keel. This target is considered highly prospective for high-grade nickel sulphide mineralisation, akin to deposits found elsewhere in the Agnew-Wiluna Belt. The ongoing drilling is supported by the Australian Government’s Exploration Incentive Scheme (EIS), with multiple grants totaling $620,000 co-funding the program.

Expanding Geophysical Coverage with MLEM Survey

In parallel with drilling, Western Mines has mobilised a crew to conduct a high-powered Moving Loop ElectroMagnetic (MLEM) survey over the Panhandle area of the project, specifically within tenement E39/2134. This survey aims to extend previous electromagnetic coverage and focus on a roughly 1.5-kilometre-long mineralised komatiite body. The MLEM technique is particularly effective at detecting bedrock conductors that may represent accumulations of nickel sulphide mineralisation.

Results from this survey will directly inform the targeting of seven co-funded RC and diamond drill holes planned for early 2026. These follow-up holes are part of a broader exploration strategy that includes up to nine additional RC holes within the main body of the Mulga Tank Complex, subject to rig availability. The company is optimistic about completing several of these holes before year-end, which would accelerate the pace of discovery.

Strategic Positioning in a Major Nickel Province

Mulga Tank is already recognised as Australia’s largest nickel sulphide deposit, with a Mineral Resource Estimate announced in April 2025 of nearly 2 million tonnes at 0.27% nickel, containing over 5.3 million tonnes of nickel. Western Mines’ exploration thesis hinges on the concept that the basal zone of the complex hosts a dynamic magmatic environment conducive to high-grade sulphide deposits. The current drilling and geophysical programs are designed to test this hypothesis rigorously.

Managing Director Dr Caedmon Marriott highlighted the significance of the ongoing work, noting the efficiency gains from tailing off the deep RC hole and the potential for the MLEM survey to unlock new drill targets. The company’s methodical approach, combining geophysical surveys with both RC and diamond drilling, reflects a mature exploration strategy aimed at expanding and upgrading the resource base.

With a strong cash position of nearly $4 million as of October 2025 and multiple EIS grants secured, Western Mines is well-funded to sustain its aggressive exploration agenda. The coming months will be critical as assay results and geophysical data emerge, potentially reshaping the outlook for Mulga Tank and reinforcing Western Mines’ position in the nickel sulphide sector.

Bottom Line?

As Western Mines drills deeper and expands geophysical surveys, the next wave of results could redefine Mulga Tank’s resource potential and investor sentiment.

Questions in the middle?

  • Will the deep diamond drilling at EIS9 confirm the presence of a high-grade sulphide keel?
  • How will the MLEM survey results influence the prioritisation of 2026 drill targets?
  • What impact could new discoveries have on Western Mines’ resource estimates and market valuation?