Western Mines Unveils Australia’s Largest Nickel Sulphide Deposit at Mulga Tank
Western Mines Group has announced a landmark nickel sulphide discovery at its Mulga Tank project in Western Australia, revealing a globally significant resource of 5.3 million tonnes of contained nickel. This positions the company as a key player in the future supply of critical battery metals.
- Mulga Tank hosts 1,968 million tonnes at 0.27% nickel, containing 5.3 million tonnes of nickel
- Largest nickel sulphide deposit in Australia and among the top 10 worldwide
- Project combines low-grade disseminated and high-grade massive sulphide mineralisation
- Tight capital structure with a market cap around $25 million
- Upcoming drilling programs aim to expand and upgrade resources
A Landmark Discovery in Western Australia
Western Mines Group has unveiled a major milestone with its Mulga Tank nickel sulphide discovery, situated in the under-explored Minigwal Greenstone Belt of Western Australia’s Yilgarn Craton. The company’s recent resource estimate reveals a massive 1,968 million tonnes of ore at 0.27% nickel, translating to 5.3 million tonnes of contained nickel. This makes Mulga Tank the largest nickel sulphide deposit in Australia and places it comfortably within the top 10 globally.
The project’s scale and grade are notable, combining a camp-scale footprint with both low-grade disseminated sulphides and high-grade massive sulphide zones. This hybrid mineralisation model draws comparisons to world-class deposits such as Perseverance and Mt Keith, underscoring the potential for a long-life, large-scale mining operation.
Strategic Importance Amid Rising Nickel Demand
Nickel’s role in stainless steel production and electric vehicle (EV) battery chemistry is driving a structural increase in demand. Western Mines highlights the strategic imperative of securing western world nickel supply, especially given geopolitical and ESG pressures on traditional producers. The Mulga Tank project’s low carbon intensity nickel sulphide mineralisation aligns well with emerging supply chain standards such as the European Battery Passport and the push for ethically sourced materials.
With Indonesia dominating global nickel production and many assets under Chinese ownership, Mulga Tank offers a compelling alternative source for secure, ESG-compliant nickel supply. Analysts often underestimate nickel demand growth, and Western Mines is positioning itself to capitalise on this market dynamic.
Exploration Success and Future Growth Potential
The company’s exploration team, led by nickel expert Dr Ben Grguric, has delivered consistent results through extensive drilling programs. Over 90% of reverse circulation holes have intersected mineralisation, confirming a robust and extensive system. Recent diamond drilling has identified multiple zones of remobilised massive sulphides and high-grade veins, suggesting potential for further resource upgrades.
Western Mines plans a Phase 4 drilling campaign focused on resource extension, infill drilling to upgrade resource confidence, and targeting high-grade Perseverance-style mineralisation at depth. Supported by government exploration incentives, this program aims to unlock the deeper, higher-grade horizons that could significantly enhance project economics.
Financial Discipline and Shareholder Alignment
Despite its large resource, Western Mines maintains a tight capital structure with a market capitalisation of approximately $25 million and a modest share count relative to peers. The company emphasises a frugal, per-share driven approach, aiming to maximise exploration expenditure efficiency and minimise dilution. This disciplined strategy is designed to deliver value directly to shareholders as the project advances.
With a strong technical team and a clear pathway to resource growth, Western Mines is well positioned to attract investor interest as nickel markets recover from cyclical lows and move toward structurally higher prices.
Bottom Line?
Western Mines’ Mulga Tank discovery sets the stage for a new era in Australian nickel supply, but upcoming drilling results will be critical to unlocking its full potential.
Questions in the middle?
- How quickly can Western Mines upgrade the inferred resource to indicated or measured categories?
- What are the preliminary metallurgical characteristics and expected recovery rates for the Mulga Tank ore?
- Will the company provide a timeline for a scoping or feasibility study to assess project economics?