Western Mines Reports 235-Metre Nickel Intercept at Mulga Tank

Western Mines Group has reported strong early results from Phase Five reverse circulation drilling at its Mulga Tank nickel project in Western Australia’s Eastern Goldfields. All four holes from the latest assay batch intersected significant nickel sulphide mineralization, reinforcing the company’s view that the project hosts an extensive magmatic sulphide system.

The most notable result came from a 235-metre intersection that graded 0.28% nickel, 134 parts per million cobalt and 228ppm copper from 83 metres downhole. The interval also included a higher-grade 10-metre section at 0.57% nickel, 148ppm cobalt, 184ppm copper and 0.20 grams per tonne of combined platinum and palladium from 84 metres.

The remaining three holes also returned broad nickel zones. One hole intersected 213 metres at 0.28% nickel from 87 metres, while two others recorded cumulative mineralized intervals of 154 metres at 0.29% nickel and 146 metres at 0.27% nickel, respectively.

The 235-metre intersection contained several higher-grade zones. These included 9 metres at 0.44% nickel from 105 metres and a deeper 17-metre interval at 0.43% nickel from 177 metres. The latter contained a 2-metre section that graded 0.94% nickel from 192 metres.

Another hole that produced 154 metres at 0.29% nickel also delivered higher-grade sections, including 10 metres at 0.43% nickel from 172 metres and 2 metres at 0.76% nickel from 280 metres. The latter included a 1-metre interval grading 1.05% nickel.

Western Mines Group Managing Director Dr. Caedmon Marriott said the first Phase Five assays confirmed mineralization across all four holes. He highlighted multiple shallow zones above 0.40% nickel as an important exploration target.

Phase Five aims to expand and improve the company’s existing mineral resource, which stands at 1.97 billion tonnes at 0.27% nickel, containing about 5.3 million tonnes of nickel metal.

The mineralized host rock is a high-temperature, high-magnesium dunite. Western Mines believes the geological setting could support a large, low-grade disseminated nickel deposit similar to BHP’s Mt Keith operation. Previous drilling also recorded nickel grades above 1%, suggesting potential for a hybrid system with higher-grade zones comparable to the Perseverance deposit.

The company has also identified possible copper-nickel fractionation, where nickel and copper mineralization become separated within the sulphide system. Management believes this geological feature could help guide future exploration toward a potentially significant nickel sulphide discovery.

The results arrive as nickel prices remain relatively firm. Nickel recently moved above US$19,000 per tonne before easing toward US$17,000 per tonne. Indonesia’s lower 2026 nickel ore quota has also raised expectations of tighter global supply.

Further assay results are expected through August and September, which could provide additional insight into the scale and grade distribution of the Mulga Tank system.

Product and Chemical Commodity Price Impact

The positive drilling results are bullish for nickel because they strengthen expectations of a potentially large domestic resource and could improve Western Mines Group’s future development prospects. A sustained supply outlook from Mulga Tank could eventually add nickel units to the global market, although any meaningful production remains years away. In the near term, the discovery should have limited direct influence on nickel prices, which remain more sensitive to Indonesian supply policies, Chinese demand and battery-sector consumption. For chemical commodities tracked by ChemAnalyst, higher nickel prices could raise costs for nickel sulfate and other nickel-based battery chemicals. Cobalt, copper and platinum-group metals may also gain modest support if broader mineralization improves supply expectations.