Can Western Mines (ASX:WMG) Expand Nickel Sulphide Mineralisation at Mulga Tank?

Aditi Sarkar

25 May 2026 02:20 PM AEST

Can Western Mines (ASX:WMG) Expand Nickel Sulphide Mineralisation at Mulga Tank?

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Key Highlights

Western Mines reported new nickel sulphide assay results from hole MTD031
The hole returned a broad mineralised interval containing elevated nickel and sulphur
Higher-grade intersections included intervals above 1% nickel
Phase 5 drilling activities are continuing across the Mulga Tank Project
The company is targeting both shallow and deeper nickel sulphide zones

Western Mines Group (ASX:WMG) has reported additional geochemical assay results from drilling at its Mulga Tank Project in Western Australia as the company continues progressing Phase 5 exploration activities targeting nickel sulphide mineralisation.

The latest results relate to shallow diamond drill hole MTD031, which intersected a broad near-continuous zone of nickel sulphide mineralisation associated with elevated nickel, sulphur, copper and platinum group element geochemistry.

According to the company, the hole returned a mineralised interval extending more than 230 metres from 90 metres depth, alongside several higher-grade nickel intersections encountered deeper within the hole.

Management stated that the results continue supporting the presence of a significant nickel sulphide mineral system within the Mulga Tank Ultramafic Complex.

Higher-Grade Nickel Zones Identified Within Broader Mineralisation

Within the broader mineralised interval, Western Mines identified multiple higher-grade zones containing nickel grades exceeding 1%.

The company highlighted intersections including 6 metres grading above 1% nickel and additional zones containing shorter intervals with nickel grades ranging between approximately 1.4% and 1.8%.

Management noted that these enriched horizons appear associated with the bases of magma pulses or flows and have now been identified across several holes within the southern area of the Mulga Tank Complex.

The company stated that these zones may represent potentially shallower areas of higher-grade mineralisation if thicker and more continuous accumulations can be defined through further drilling.

Phase 5 Drilling Program Continues

Western Mines confirmed that drilling activities are continuing following improvements in fuel availability and operational conditions at the project site.

The company recently completed several reverse circulation infill holes as well as a diamond tail extension to earlier drill hole MTRC001, which is targeting up-dip extensions of deeper enriched zones previously identified nearby.

Additional mud rotary pre-collaring activities have also been completed ahead of the next batch of Phase 5 holes, with drilling now underway on the latest targets.

Management stated that the current drilling strategy combines Reverse Circulation Drilling aimed at defining shallow disseminated nickel sulphide mineralisation with deeper diamond drilling targeting basal massive sulphide systems.

Mulga Tank Exploration Model Continues Developing

According to the company, geological and geochemical analysis continues supporting the presence of an extensive nickel sulphide mineral system within the Mulga Tank Complex.

The company noted that the host rocks encountered in MTD031 were dominated by high magnesium oxide adcumulate dunite, which may be favourable for targeting large-Volume disseminated nickel sulphide deposits similar to other major nickel systems.

Western Mines also highlighted geochemical indicators including elevated sulphur, copper and platinum group elements, which it said demonstrate evidence of active magmatic sulphide processes associated with nickel sulphide mineralisation.

The current Phase 5 program includes additional reverse circulation holes targeting the near-surface continuation of enriched mineralised zones identified within the southwestern portion of the complex.

About the Company

Western Mines Group (ASX: WMG) is an Australian exploration company focused on nickel sulphide exploration at the Mulga Tank Project in Western Australia. The company is advancing drilling programs targeting both shallow disseminated nickel sulphide mineralisation and deeper basal sulphide systems within the Mulga Tank Ultramafic Complex.

Industry Trends and Market Context

Nickel remains an important Commodity within both stainless steel Manufacturing and battery Supply chains linked to electric vehicles and energy storage technologies. Demand for sulphide-hosted nickel deposits continues attracting industry attention due to their potential suitability for battery-grade nickel production.

Exploration companies focused on nickel sulphide systems have continued advancing drilling programs amid ongoing interest in critical minerals and battery materials. However, nickel markets remain influenced by commodity price Volatility, global supply dynamics and evolving demand conditions across industrial and energy transition sectors.

At the same time, exploration projects remain subject to geological uncertainty, operational risks and Capital funding requirements as companies work toward resource definition and potential future development.

Bullish Perspective

Supporters of Western Mines may view the latest Mulga Tank results as further evidence of a broad and potentially scalable nickel sulphide system with both shallow and deeper mineralisation targets.

Investors may also focus on the presence of higher-grade intervals and the ongoing Phase 5 drilling program aimed at extending and refining known mineralised zones.

Bearish Perspective

More cautious investors may note that the Mulga Tank Project remains in the exploration stage, with further drilling required to confirm continuity, scale and potential economic viability of the mineralisation.

Nickel market volatility, funding requirements and operational challenges may also affect future project development timelines and investor sentiment.

Investment Risks and Challenges

Western Mines faces exploration and development risks associated with early-stage nickel projects, including geological uncertainty, operational delays and funding requirements.

Future drilling results may vary from current exploration outcomes and there is no certainty that mineralisation identified to date will support future economic extraction. Commodity price fluctuations and changing battery materials demand trends may also influence long-term project Economics.

Operational challenges including logistics, drilling conditions and resource estimation requirements may additionally affect exploration progress.

FAQs

Q: What were the latest results reported by Western Mines?

A: The company reported further nickel sulphide assay results from drill hole MTD031 at the Mulga Tank Project, including broad mineralised intervals and higher-grade nickel zones.

Q: What is the focus of the Mulga Tank drilling program?

A: Western Mines is targeting both shallow disseminated nickel sulphide mineralisation and deeper basal massive sulphide zones.

Q: What is the significance of the higher-grade intersections?

A: The higher-grade zones may indicate potentially enriched nickel sulphide horizons within the broader Mulga Tank mineral system.

Q: What are the key risks facing Western Mines?

A: Key risks include exploration uncertainty, commodity price volatility, operational challenges and funding requirements associated with advancing nickel exploration projects.

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