Western Mines Group Hits 186m of Nickel at Mulga Tank Ahead of Resource Update
Key Takeaways
- All seven Phase 5 RC holes (MTRC088 to MTRC094) intersected broad nickel sulphide zones, led by 186m at 0.30% Ni in MTRC090 and 113m at 0.31% Ni in MTRC091.
- MTRC091 returned 2m at 1.29% Ni within 5m at 0.77% Ni from 104m, showing shallow higher-grade cores inside the bulk zones.
- Results from 32 Phase 4 and Phase 5 holes are feeding an updated Mineral Resource Estimate due within weeks, building on the existing 1,968Mt at 0.27% Ni.
- A ~35km2 seismic survey backed by up to $300,000 of EIS funding will target Perseverance-style massive nickel sulphide at the basal contact.
- With $1.58M cash against a $20.86M market cap, funding for the Scoping Study and further work is the key balance sheet question.
Phase 5 assays confirm broad nickel sulphide zones at Mulga Tank
Western Mines Group has received final Phase 5 reverse circulation (RC) assay results for holes MTRC088 to MTRC094 at Mulga Tank, and all seven show broad zones of nickel sulphide mineralisation. The company reports elevated nickel (Ni) and sulphur (S) coincident with highly anomalous copper (Cu) and platinum group elements (PGE).
The strongest results came from MTRC090, which returned 186m at 0.30% Ni from 109m, and MTRC091, which returned 113m at 0.31% Ni from 104m. MTRC091 also included 5m at 0.77% Ni, which in turn included 2m at 1.29% Ni.
Two near-term catalysts follow. The 32 holes from Phase 4 and Phase 5 are being incorporated into an updated Mineral Resource Estimate, and an Exploration Incentive Scheme (EIS) co-funded seismic survey is due to start in the coming weeks. The company says the resource update will feed into Scoping Study work, so these results sit directly in the path of the project’s next studies.
The table below sets out the cumulative intervals reported for each hole. An asterisk (*) means the interval ended in mineralisation, so the mineralised zone may continue beyond where the hole stopped.
| Hole | Cumulative interval | Ni % | Co ppm | S:Ni |
|---|---|---|---|---|
| MTRC088 | **129m** | **0.28%** | 132 | 0.6* |
| MTRC089 | **169m** | **0.29%** | 127 | 0.6* |
| MTRC090 | **186m** (from 109m) | **0.30%** | 145 | 1.5 |
| MTRC091 | **172m** | **0.29%** | 143 | 0.9* |
| MTRC092 | **219m** (from 81m) | **0.26%** | 126 | 1.1* |
| MTRC093 | **155m** | **0.27%** | 132 | 0.9* |
| MTRC094 | **158m** | **0.26%** | 131 | 0.9 |
A note on MTRC092: the announcement is not consistent with itself. The highlights list 219m at 0.26% Ni, while the detailed results list 219m at 0.27% Ni from 81m, and the Discussion cites 216m at 0.27% Ni from 81m. The table above uses the highlights figure, and readers should check the original announcement.
Dr Caedmon Marriott, Managing Director
“All seven holes showed broad zones of mineralisation, with MTRC090 and MTRC091 returning the strongest results with multiple shallow intersections of higher grade ~0.4% Ni results…”
Shallow higher-grade intercepts
Several holes also returned narrower, higher-grade intervals within the broader zones:
- MTRC091: 5m at 0.77% Ni from 104m, including 2m at 1.29% Ni from 107m; and 1m at 1.24% Ni from 214m.
- MTRC090: 10m at 0.50% Ni from 157m.
- MTRC089: 1m at 1.08% Ni from 223m.
These are downhole lengths, and the relationship to true width is not known. In practical terms, a hole drilled at an angle can overstate how thick a zone really is.
MTRC090 and MTRC091 were infill holes in the northwestern part of the current resource, and the company hopes they will increase drilling density to extend Indicated Resource in that area. Nearby higher-grade holes include MTRC024, which returned 3m at 2.19% Ni.
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What nickel sulphide geochemistry tells investors
Not all nickel in the ground can be turned into metal. The company explains that without magmatic sulphide processes, nickel is incorporated into olivine as the rock crystallises and is essentially trapped in the dunite host rock.
In “live” sulphur-saturated systems, by contrast, the nickel partitions into potentially “recoverable” nickel sulphide. That distinction is why the geochemical signals matter.
The company uses three groups of indicators to confirm active magmatic sulphide processes:
- Elements with a high affinity for sulphide, such as Cu and PGEs (platinum and palladium).
- Sulphur (S).
- The S:Ni ratio, with company cut-offs including S:Ni >0.5.
The host rock is high-MgO adcumulate dunite, with MgO above 40% and Al2O3 between 0.1% and 0.5%. It starts essentially immediately under the sand cover.
The company says this has positive implications for targeting large-volume, low-grade Type 2 Mt-Keith style disseminated nickel sulphide deposits. It adds that intersections of >1% Ni seen in previous results support Mulga Tank being more likely a “Hybrid” Type 1/2 system, more akin to Perseverance. Those are the company’s interpretations, not confirmed outcomes.
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Resource upgrade and seismic survey are next
The original Mineral Resource Estimate, announced on 10 April 2025, was based on 58 RC holes and 7 diamond holes up to Phase 3. Results from a further 32 holes from Phase 4 and Phase 5 are being incorporated into an updated Mineral Resource over the next few weeks.
The updated resource will form the basis of a mine plan to feed into a Scoping Study the company is aiming to produce. The announcement does not disclose an expected resource size.
On the seismic side, the company was awarded the maximum $250,000 under EIS Venture 3 Co-Funded Geophysics, towards 50% of costs of an active seismic survey within tenement E39/2132. That grant has since been increased by $50,000 to $300,000.
The company intends to run a ~35km2 survey to image the architecture of the Mulga Tank Ultramafic Complex and aid targeting of the basal contact for Perseverance-style massive nickel sulphide deposits. The survey is anticipated to take around 3 weeks, with the contractor mobilising once shire roads reopen after recent rainfall.
Two shallow diamond holes, MTRC076 and MTRC077, remain outstanding from Phase 5.
The corporate snapshot from the announcement:
- Share price: $0.16
- Market capitalisation: $20.86M
- Shares on issue: 130.37M
- Cash: $1.58M (30 June 2026)
The company describes its April 2025 Mineral Resource Estimate of 1,968Mt at 0.27% Ni as making Mulga Tank the largest nickel sulphide deposit in Australia. For investors, the next updates to watch are the resource estimate and the seismic survey, both of which the company says it will report on.
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