Capital Raise Fuels Western Mines’ Quest for High-Grade Nickel at Mulga Tank
Western Mines Group has reported significant nickel sulphide mineralisation in its ongoing Phase 4 drilling at the Mulga Tank Project, alongside securing $3.72 million in fresh capital to accelerate exploration efforts.
- Phase 4 RC and diamond drilling underway at Mulga Tank
- Hole MTRC066 delivers one of the project’s best shallow nickel sulphide intersections
- Diamond drilling confirms a dynamic, mineralised komatiite flow system in the Panhandle area
- Three active WA government EIS grants totaling $620,000 support exploration
- October capital raise of $3.72 million to fund further drilling and project advancement
Mulga Tank Drilling Advances Nickel Sulphide Discovery
Western Mines Group Ltd (ASX – WMG) has delivered a productive September quarter, with its flagship Mulga Tank Ni-Co-Cu-PGE Project at the forefront. The company commenced a Phase 4 drilling campaign combining reverse circulation (RC) and diamond drilling, targeting extensions to known mineralisation and new prospective zones within the Mulga Tank Ultramafic Complex.
Early results from the first four RC holes, drilled south of previous programs, have been encouraging. All holes encountered visible sulphide mineralisation, confirmed by geochemical assays, extending the footprint of the nickel sulphide system beyond the current resource boundary. Notably, hole MTRC066 emerged as a standout, delivering a continuous 269-meter intersection averaging 0.33% nickel, with higher-grade intervals exceeding 1% nickel. This hole is considered one of the best shallow RC holes drilled at the project to date, underscoring the potential for near-surface, open-pit mining scenarios.
Diamond Drilling Validates Geological Model
Complementing the RC program, diamond drilling in the Panhandle area of the Mulga Tank Complex has confirmed a highly prospective and dynamic komatiite flow system. Hole MTD030, drilled to over 700 meters, intersected extensive zones of serpentinised ultramafic rocks with disseminated magmatic sulphides and high-tenor nickel sulphide globules. These findings support the presence of fertile geological conditions conducive to the formation of Kambalda-style basal massive sulphide deposits, a key target for the company.
Further diamond drilling extended the basal sulphide zone along the western margin of the complex, with hole MTRC011 intersecting high-grade semi-massive sulphide segregations. These observations reinforce Western Mines’ thesis that the basal zone may host Perseverance-style high-grade nickel sulphide deposits, a significant exploration milestone.
Government Grants and Capital Raise Bolster Exploration
Western Mines has successfully secured three active Exploration Incentive Scheme (EIS) grants from the Western Australian government, totaling $620,000 in co-funding for drilling activities. These grants are strategically supporting high-impact drilling programs across the Mulga Tank Project, including the Panhandle area.
Post-quarter, the company completed a $3.72 million capital raise through the issuance of shares and attached options. This infusion of funds provides a solid financial foundation to sustain and expand exploration efforts, enabling the company to pursue its aggressive drilling strategy and advance the Mulga Tank Project towards resource growth and eventual development.
Broader Exploration Portfolio Progress
Beyond Mulga Tank, Western Mines continues to progress its diversified portfolio. At Jasper Hill, ongoing geological mapping and geophysical surveys aim to delineate gold targets along a 3-kilometer mineralised trend. The Youanmi, Melita, and Pinyalling projects also saw continued technical work, including gravity surveys and remote sensing, enhancing the understanding of their gold and base metal potential.
With a strengthened cash position and a clear exploration roadmap, Western Mines is well-positioned to unlock value across its Western Australian assets.
Bottom Line?
With robust drilling results and fresh capital in hand, Western Mines is poised to deepen its nickel sulphide footprint at Mulga Tank, setting the stage for a pivotal resource update.
Questions in the middle?
- Will upcoming assay results confirm further high-grade nickel zones beyond MTRC066?
- How will the company prioritise drilling targets within the extensive Mulga Tank Ultramafic Complex?
- What timeline is Western Mines targeting for an updated Mineral Resource Estimate incorporating Phase 4 drilling?
