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Highlights

  • WMG restarts Phase 4 drilling at Mulga Tank targeting nickel sulphide extensions and high-grade zones
  • The company receives EIS funding for deeper diamond drilling in key prospective areas
  • WMG shares up 28.57% to AUD 0.18 following drilling recommencement announcement.

Western Mines Group Ltd (ASX:WMG) is a mineral exploration company focused on the discovery of nickel sulphide systems in Western Australia. Its flagship asset is the Mulga Tank Ni-Cu-Co-PGE Project, where it has identified an extensive mineralised ultramafic complex through both RC and diamond drilling programs.

The company has resumed exploration activities at its Mulga Tank Nickel-Copper-Cobalt-PGE Project, located in the Minigwal Greenstone Belt of Western Australia’s Eastern Goldfields. The recommencement of drilling marks the start of the company’s Phase 4 program, comprising both reverse circulation (RC) and diamond drilling, following capital raised in May and grants under the Exploration Incentive Scheme (EIS).

The company confirmed that its exploration team is mobilising to site this week. The new drill campaign includes further RC drilling to infill and extend the recent Mineral Resource Estimate announced in April 2025, as well as diamond drilling to test deeper targets. Three of the planned diamond holes will be supported by the EIS grants, totalling AUD 440,000.

Infill RC holes will focus on extending mineralisation to the south of previously drilled areas and improving confidence in the current resource estimate. Initial drill collars completed during Phase 3 will enable a rapid start. Additional drilling is also planned in zones between indicated resource blocks, with the objective of refining future mine planning and identifying higher-grade zones potentially suitable for a starter pit.

High-grade intersections from prior drilling including 5m at 1.92% Ni and 0.21% Cu in hole MTRC046—are scheduled for further follow-up, with Down Hole Electromagnetic (DHEM) surveys underway. The DHEM work will guide the placement of subsequent diamond drill holes targeting shallow massive sulphide zones.

Western Mines Group Managing Director Dr. Caedmon Marriott noted that the team is preparing to drill for the first time since completing its Phase 3 RC program nine months ago. He highlighted that RC drilling has been effective in defining shallow disseminated nickel sulphide mineralisation, as reflected in the Mineral Resource Estimate of over 5Mt contained nickel. The current program aims to build on this foundation while systematically exploring new prospective zones.

The company is targeting the western margin of the Mulga Tank Complex, where recent geological mapping and prospectivity reviews suggest potential for basal massive sulphide accumulations. This includes planned diamond tails from RC fences to test the basal architecture, especially around hole MTD028, which intersected 140m at 0.49% Ni.

The program also includes deep drilling funded under EIS Round 31. Two diamond holes are planned in tenement E39/2134, following up on regional RC holes MTRC062 and MTRC063. These earlier holes intersected high-MgO komatiite lithologies and returned geochemical results suggestive of a fertile nickel sulphide environment. Petrographic analysis confirmed the presence of pentlandite and other sulphide minerals.

Another EIS-funded deep hole is planned within tenement E39/2132 to investigate the eastern portion of a MobileMT anomaly previously intersected by hole MTD027. That hole returned 96m at 0.40% Ni from 1,208m, including 8m at 1.11% Ni from 1,270m. The mineralisation style observed—disseminated sulphide within dunite—resembles known Type 2 nickel sulphide systems like Mount Keith.

The Mulga Tank Complex has shown frequent occurrences of massive sulphide globules and intercumulus sulphide blebs in diamond drilling, particularly within the lower 200m near the basal contact. These features, found across multiple holes, indicate the presence of a potentially mineralised basal zone and suggest multiple surges of magma emplacement. Geochemical signatures across holes MTD027, MTD028, and MTD029 show three distinct mineralised intervals interspersed with unmineralised zones, possibly representing separate magma pulses.

Western Mines Group’s shares rose 28.57% to AUD 0.18 as of June 30, 2025, following the recommencement announcement.