Western Mines Unveils Australia’s Largest Nickel Sulphide Deposit at Mulga Tank

A Landmark Discovery in Western Australia

Western Mines Group Ltd (ASX, WMG) has announced a significant milestone with its Mulga Tank nickel sulphide project, revealing a mineral resource estimate of 1,968 million tonnes at 0.27% nickel, equating to 5.3 million tonnes of contained nickel. This positions Mulga Tank as the largest nickel sulphide deposit ever discovered in Australia and places it comfortably within the top 10 nickel sulphide deposits worldwide.

The project is located within the under-explored Minigwal Greenstone Belt in Western Australia’s Yilgarn Craton, a region renowned for world-class komatiite-hosted nickel deposits such as Perseverance and Mt Keith. Western Mines’ discovery is notable for its scale and the combination of both low-grade disseminated sulphides and higher-grade massive sulphide zones, offering a compelling development opportunity.

Robust Drilling Results and Resource Growth

Western Mines has conducted extensive reverse circulation (RC) and diamond drilling programs, with 62 RC holes totalling nearly 20,000 metres and multiple deep diamond holes intersecting thick intervals of mineralisation. Impressively, 59 out of 62 RC holes have returned mineralised results, highlighting the consistency and extent of the deposit.

High-grade zones have been identified within the broader resource, including intervals exceeding 1% nickel and notable cobalt, copper, and platinum group element (PGE) credits. These higher-grade pockets resemble the Perseverance-style basal massive sulphide deposits, which are highly sought after for their economic potential.

Strategic Positioning and Market Context

The Mulga Tank project benefits from a tight capital structure, with a market capitalisation around $27 million and a focused management team led by nickel exploration expert Dr Ben Grguric and Managing Director Dr Caedmon Marriott. Their disciplined approach emphasises efficient exploration spend and minimising equity dilution, aiming to maximise per-share value.

Market fundamentals for nickel remain robust, driven by supply constraints, rising production costs, and growing demand from stainless steel manufacturing and electric vehicle battery sectors. Western Mines’ polymetallic nickel-cobalt-copper-PGE system aligns well with the evolving needs of the energy transition, where high-value battery metals are critical.

Looking Ahead, Exploration and Development Potential

Western Mines is advancing a multi-phase drilling program focused on resource extension, infill drilling to upgrade resource classification, and targeting near-surface higher-grade zones to optimise future mine planning. Government co-funded drilling initiatives support ongoing exploration, including testing new komatiite channel targets along the belt.

While the company has yet to release detailed scoping or feasibility studies, the scale and quality of Mulga Tank’s resource provide a strong foundation for future development. The project’s potential to become a major new source of western world nickel supply is increasingly evident as drilling continues to unlock its full value.