Western Mines Group has reported significant progress in its Mulga Tank nickel project with deep drilling revealing extended high-grade sulphide zones, supported by a $3.72 million capital raise and government grants to fund further exploration.
- Phase 4 drilling at Mulga Tank uncovers extended high-grade nickel sulphide zones
- Diamond tails to RC holes MTRC011 and MTRC009 confirm active basal sulphide mineralisation
- Successful $3.72 million capital raise strengthens funding for ongoing exploration
- Three active WA Exploration Incentive Scheme grants totaling $620,000 secured
- MLEM geophysical survey completed to enhance drill targeting in Panhandle area
Mulga Tank Drilling Advances
Western Mines Group Ltd (ASX – WMG) has delivered a robust quarterly update for December 2025, highlighting continued momentum at its flagship Mulga Tank Ni-Co-Cu-PGE Project. The company’s Phase 4 drilling program, combining reverse circulation (RC) and diamond drilling, has yielded promising visual indications of high-grade nickel sulphide mineralisation along the basal zone of the Mulga Tank Complex.
Notably, the diamond tail extension to RC hole MTRC011 intersected multiple semi-massive sulphide segregations with spot readings up to 46.4% nickel, extending the known sulphide-enriched basal zone by approximately 400 metres. This builds on previous results from hole MTD028, which intersected 140 metres at 0.49% nickel, including a substantial 82-metre interval at 0.55% nickel.
Deep Drilling Validates Exploration Thesis
Another deep diamond tail drilled to 1,437.5 metres, MTRC009 (EIS9), situated centrally within the Mulga Tank Complex, confirmed broad zones of disseminated nickel sulphide mineralisation and frequent high-grade remobilised massive sulphide veinlets. Spot pXRF readings reached up to 55% nickel, reinforcing the potential for Perseverance-style high-grade deposits within the basal contact zone.
These results support Western Mines’ exploration thesis that the basal zone hosts a hybrid nickel sulphide system with both disseminated and massive sulphide components, a critical factor for the economic viability of the deposit.
Funding and Government Support Bolster Exploration
During the quarter, Western Mines successfully completed a significant capital raise of $3.72 million (before costs), issuing over 16 million shares at $0.22 each, accompanied by options exercisable at $0.40. This funding positions the company well to continue its aggressive exploration strategy at Mulga Tank.
Complementing this, the company secured an additional $180,000 grant under the Western Australian Exploration Incentive Scheme (EIS), bringing total active EIS grants at Mulga Tank to $620,000. These grants co-fund drilling costs and validate the company’s targeting approach, enabling high-impact drilling campaigns in the Panhandle area and other prospective zones.
Enhanced Geophysical Targeting and Broader Portfolio
Western Mines also completed a Moving Loop ElectroMagnetic (MLEM) survey over the Panhandle area, designed to detect bedrock conductors indicative of nickel sulphide mineralisation. The survey results will guide upcoming drill programs, enhancing targeting precision.
Beyond Mulga Tank, the company continues to advance its gold-focused Jasper Hill project, alongside exploration activities at Youanmi, Melita, and Pinyalling projects, maintaining a diversified portfolio across Western Australia’s prolific mineral belts.
With a cash balance of $3.14 million at quarter-end and no mining production activities reported, Western Mines remains focused on exploration and resource definition to unlock the full potential of its assets.
Bottom Line?
Western Mines’ latest drilling and funding milestones set the stage for a pivotal year in defining a major nickel sulphide resource at Mulga Tank.
Questions in the middle?
- When will full assay results from holes MTRC011 and MTD030 be released, and how might they impact resource estimates?
- How will the company prioritise drilling targets within the newly extended basal sulphide zone?
- What are the timelines and expected outcomes for the upcoming EIS-funded drilling campaigns in the Panhandle area?