Western Mines Advances Mulga Tank with High-Grade Nickel and New Strategic Moves

Mulga Tank Drilling Yields High-Grade Nickel Intersections

Western Mines Group Ltd (ASX:WMG) has wrapped up Phase 4 drilling at its flagship Mulga Tank Ni-Co-Cu-PGE Project with standout results that reinforce the project's status as Australia's largest nickel sulphide deposit. Among the highlights, hole MTRC069 returned a broad 225m intersection grading 0.32% nickel starting from 93m, including a high-grade 4m zone at 2.17% Ni and an exceptional 1m interval hitting 4.35% Ni. These results represent the second highest nickel grades recorded at Mulga Tank to date, pointing to significant potential for resource growth in this new area of the complex.

Despite operational challenges such as weather-induced road closures and diesel shortages, the drilling program maintained momentum, combining reverse circulation (RC) and diamond drilling techniques. The deep diamond tail to hole MTRC009, supported by a WA Exploration Incentive Scheme (EIS) grant, reached 1,540.5m and intersected extensive disseminated and remobilised massive sulphide mineralisation, demonstrating the complex's considerable depth and mineral system continuity.

These latest assay results build on previous encouraging findings from holes like MTRC011, which showed broad mineralised zones with elevated copper and platinum group elements (PGEs), and a sulphur to nickel ratio indicative of nickel in sulphide. The company's approach of integrating RC drilling for near-surface disseminated mineralisation with diamond drilling targeting basal massive sulphides continues to validate the Mulga Tank deposit model, which is reminiscent of the Perseverance-style nickel sulphide systems.

Strategic Portfolio Adjustments and New Project Acquisitions

During the quarter, Western Mines undertook a strategic review of its asset portfolio, resulting in the sale of the Melita Project and the surrender of the Pinyalling tenement, allowing the company to focus capital and resources on higher potential areas. Concurrently, WMG acquired two promising nickel-copper exploration projects in Western Australia’s Fraser Range and Mt Narryer regions, both considered prospective for magmatic sulphide deposits. The Fraser Range project notably includes the Octagonal Intrusive Complex, a target with legacy data from Legend Mining indicating disseminated to semi-massive nickel-copper sulphides. This acquisition aligns with WMG’s expertise and complements its flagship Mulga Tank project, as detailed in the recent nickel-copper portfolio expansion.

Exploring Magnesite Potential with Magnium Australia

Adding a new dimension to its asset base, Western Mines signed a Memorandum of Understanding with Magnium Australia to investigate the supply of magnesite from Mulga Tank. The project’s ultramafic complex hosts a weathered magnesite cap containing up to 48% magnesite, currently classified as oxide waste in the nickel resource model. Magnium’s proprietary MagsonicTM process aims to produce low-carbon magnesium metal, with magnesite as a key feedstock. This collaboration could transform a cost centre into a valuable revenue stream, enhancing the overall economics of Mulga Tank. The initiative follows earlier announcements on this partnership and is a promising avenue to unlock additional value from the project’s mineralogy, as captured in the magnesite supply MoU.

Securing Government Support for Advanced Geophysical Surveying

Western Mines successfully secured a $250,000 grant under the WA Exploration Incentive Scheme’s Co-Funded Geophysics Program to conduct an active seismic survey over the Mulga Tank Ultramafic Complex. The planned ~35km2 survey aims to image the 3D architecture of the complex, particularly the basal contact zone that hosts massive nickel sulphide accumulations. This geophysical data will complement existing magnetic and gravity datasets, potentially enabling direct detection of massive sulphide bodies and refining drill targeting. The award adds to WMG’s suite of EIS grants totaling over $1.6 million in the last three years, underscoring external validation of the project’s exploration potential and the company’s targeting strategy, as discussed in the high-grade nickel assays update.

Financial Position and Upcoming Catalysts

Western Mines entered the quarter with a solid cash position of $2.43 million, supported by a recent capital raise of approximately $3.7 million. Exploration and evaluation expenditure remained steady at around $685,000, focused primarily on ongoing drilling and assays at Mulga Tank. No mining production occurred during the period, consistent with the company’s development stage. Looking ahead, the company has commenced Phase 5 drilling, targeting high-grade resource tonnes with 25 holes planned within the main complex and additional holes on adjacent tenements. The upcoming assay results from this program and the seismic survey outcomes will be critical in shaping the next phase of resource definition and development planning.