37 holes and 12,565.9 metres advance Western Mines' Mulga Tank campaign

Deep basal zone delivers Mulga Tank's strongest result

Western Mines Group Ltd (ASX:WMG) has strengthened the geological case for a deeper nickel sulphide target at Mulga Tank, reporting its richest basal intersection at the project to date. Deep diamond hole MTRC009 returned 116 metres at 0.50% nickel from 1,303 metres, including 38 metres at 0.71% nickel from 1,324 metres. The interval contained multiple one-metre samples above 1% nickel, with a peak reported interval of 3 metres at 1.49% nickel and a separate one-metre result of 2.34% nickel.

The result is important to WMG's exploration thesis because the company is targeting a Perseverance-style massive sulphide accumulation along the base of the Mulga Tank ultramafic complex. MTRC009 also encountered remobilised massive sulphide veinlets and sulphide segregations, but the reported intersection remains an exploration result rather than a declared reserve, mining study or economic discovery.

Broad shallow mineralisation continues across the complex

Across the financial year, WMG drilled 37 holes for 12,565.9 metres through reverse circulation and diamond programs. The standout shallow result came from MTRC066, which returned 269 metres at 0.33% nickel from 61 metres, including 82 metres at 0.43% nickel and a six-metre section at 1.18% nickel.

The Phase 4 and Phase 5 programs produced a series of broad disseminated nickel sulphide intersections, generally in the 0.21% to 0.33% nickel range. Phase 5 results were available only through hole MTRC087 at the reporting date, leaving further assays and interpretation as near-term exploration catalysts. The company also reported mineralised intervals in deeper holes MTRC001 and MTRC011, adding to its view that the system extends across a substantial portion of the complex.

Seismic survey and Panhandle drilling move into focus

WMG secured a further $430,000 in Western Australian Exploration Incentive Scheme support during the year: $180,000 for six Panhandle drilling holes, including two diamond tails, and $250,000 towards half the cost of an active seismic survey. The planned survey covers about 35 square kilometres and is intended to map the three-dimensional architecture and basal contact of the Mulga Tank ultramafic complex.

The company says the seismic work could improve targeting of a possible feeder vent and basal sulphide accumulations. Those objectives remain prospective rather than demonstrated. WMG has also entered a memorandum of understanding with Magnium Australia to investigate whether magnesite from the weathered upper zone could be suitable feedstock for a proposed magnesium process, although any commercial supply arrangement would depend on resource definition, test work and subsequent negotiations.

Exploration momentum meets a widening funding gap

The financial position is less comfortable than the drilling narrative. WMG reported a $3.46 million loss for the year, up from $1.73 million, negative operating cash flow of $1.28 million and cash of $1.58 million at 30 June 2026. The directors retained the going-concern basis, but the report explicitly says a material uncertainty could arise if planned funding and operating initiatives are unsuccessful.

During the year, WMG raised $3.64 million through a share issue priced at $0.22. After year end it raised a further $1.70 million in cash at $0.163 a share and issued shares valued at $1 million in an equity swap with Lowell Resources Fund (ASX:LRT), which became WMG's largest shareholder with a reported 10.6% holding. The additional capital provides room for exploration, but it also underlines the dependence of the project on continuing access to equity funding. The report contains minor inconsistencies in the stated number of attaching options and post-year-end shares, which investors may want reconciled against the underlying issue notices.