Western Mines Advances Mulga Tank with High-Grade Nickel and $2.74m Capital Raise

Phase 5 Drilling Delivers High-Grade Nickel Hits

Western Mines Group Ltd (ASX:WMG) has concluded its Phase 5 drilling campaign at the Mulga Tank Ni-Co-Cu-PGE Project, revealing multiple high-grade nickel sulphide intersections that reinforce the project's status as Australia’s largest nickel sulphide deposit. Notably, drill hole MTRC069 returned a striking 1m interval grading 4.35% nickel, alongside significant cobalt, copper, and platinum group elements (PGEs). This is the second highest grade recorded at the project to date.

Other standout results include broad mineralised zones such as 27m at 0.61% Ni from 273m in MTRC069, and multiple intervals exceeding 1% Ni in deep diamond hole MTRC009, which intersected over 900m of ultramafic rock with disseminated and remobilised sulphides. The basal zone of MTRC009 alone returned 116m at 0.50% Ni, with several sub-intervals surpassing 1% nickel, highlighting the potential for massive sulphide accumulations within the Mulga Tank Ultramafic Complex.

Government Grant to Fund Seismic Survey Targeting Massive Sulphides

In a significant boost to its exploration strategy, Western Mines secured the maximum $250,000 co-funded grant from the WA Government’s Exploration Incentive Scheme (EIS) for an active seismic survey over the Mulga Tank Ultramafic Complex. The approximately 35km² survey, planned for August to September 2026, aims to image the complex’s 3D architecture and, critically, to map the basal contact zone where Perseverance-style massive nickel sulphide deposits are expected.

This seismic program could provide direct detection of massive sulphide accumulations thicker than 4 metres, a key target for advancing Mulga Tank’s resource base beyond the current disseminated nickel sulphide system. The survey complements the extensive drilling data and is expected to refine targeting for upcoming exploration phases.

Capital Raise Strengthens Financial Position and Brings New Cornerstone Investor

Following the quarter, Western Mines completed a $2.74 million capital raise at $0.163 per share, attracting a new cornerstone investor, Lowell Resources Fund (ASX:LRT), which subscribed for over 12 million shares and now holds a 10.6% stake, becoming the largest shareholder. The raise also included participation from existing top 20 shareholders, including Equentia Natural Resources, who maintained their holdings.

This fresh capital injection bolsters the company’s cash position to $1.58 million at quarter-end, ensuring sufficient funding for the planned seismic survey and ongoing exploration activities. The company confirmed it expects to maintain current operating cash flows and has taken steps to secure additional funding as needed.

Exploration Momentum Across Diversified Project Portfolio

While Mulga Tank remains the flagship, Western Mines continues to advance its broader portfolio. At Jasper Hill, near Laverton, the company completed soil sampling and geophysical surveys targeting a 3km mineralised gold trend. The Fraser Range project, acquired from Legend Mining, offers early-stage magmatic nickel-copper sulphide targets with legacy geophysical data ready for reinterpretation.

At Mt Narryer, Western Mines purchased existing data from previous owners to support exploration of this cratonic margin area prospective for nickel-copper-PGE mineralisation. The Youanmi project saw extended gravity surveys focusing on structural targets along the major Youanmi Shear, near historic gold mining centres.

Strong Technical Leadership and Upcoming Shareholder Engagement

Western Mines’ exploration results and strategic moves are overseen by Managing Director Dr Caedmon Marriott and Technical Director Dr Benjamin Grguric, both bringing significant expertise in nickel sulphide systems. The company plans a shareholder webinar on 7 August to discuss recent exploration progress and answer investor questions, signalling ongoing transparency and engagement.