$440K govt grant to extend Western Mines Goldfields drilling program
Both awards comprise the maximum 50 per cent co-funding available under the government incentive program and were awarded within a competitive application process.
WMG will put the funding towards the direct drilling costs of three diamond holes to further test the main body of the company's Mulga Tank complex and an interpreted komatiite channel system that is 8.2 kilometres northwest of the complex.
The work will include a 1500-metre deep diamond hole into the Mulga Tank ultramafic complex to follow up results from a previous diamond drilling program and an EIS-funded hole that was drilled last year.
The new hole, designated EIS8, will target the eastern portion of a Mobile magneto-telluric anomaly at the base of the intrusion. It will pass close to higher grade geochemical results from a previous diamond hole put into the zone.
WMG believes the targeted zone could represent a sulphide-enriched keel and/or a feeder vent for the overall intrusion.
The company has also designed two more diamond drill holes to probe to about 700m depth in one of the numerous elongate inferred komatiitic channels in its contiguous exploration licence, about 8.2km northwest of the proposed single deep hole.
Komatiite rocks are a type of ultramafic mantle-derived volcanic rock defined as having crystallised from a lava of at least 18 per cent magnesium oxide and containing low silicon, potassium and aluminium and high to extremely high magnesium.
The rare rocks almost all formed during the Archaean Eon, between 4.03–2.5 billion years ago, although a few younger examples are known.
Geographically, komatiites are mainly distributed to Archaean shield areas – including Mulga Tank for example - and occur with other ultramafic and high-magnesian mafic volcanic rocks in Archaean greenstone belts.
WMG first tested the Mulga Tank channel system during a belt-wide reverse circulation drilling program last year.
The two new holes will follow up the results of two holes drilled under a previous EIS grant into one of the elongate zones. They will test a body interpreted from aeromagnetic imagery to be about 1.3km long and which drilling confirms as high-magnesium oxide olivine cumulate/dunite and komatiite lithologies, with visible nickel sulphide mineralisation.
The planned holes will examine the stratigraphy of the komatiite system and target basal contact that last year's reverse circulation holes did not reach.
The company has undertaken various diamond and reverse circulation drilling programs at its Mulga Tank project over the past two years, which have demonstrated significant nickel sulphide mineralisation and an extensive nickel sulphide mineral system within the Mulga Tank ultramafic complex.
The company's exploration has included three deep co-funded diamond holes drilled with the aid of its EIS grants in rounds 26 and 28 of the State Government's co-funded exploration drilling program.
Previous EIS awards have been instrumental in the discovery of an extensive nickel sulphide mineral system within the Mulga Tank ultramafic complex.
The proposed deep EIS hole, EIS8, will look to test the basal contact of the complex and will target the eastern portion of a conductive MobileMT anomaly that was 'grazed' by a non-EIS hole.
That hole returned 96m at 0.40 per cent nickel and 0.016 per cent cobalt from 1208m, including 38m at 0.56 per cent nickel and 0.016 per cent cobalt from 1262m, and 8m at 1.11 per cent nickel and 0.018 per cent cobalt from 1270m at a depth corresponding to the MT anomaly.
These results are hosted within heavily disseminated sulphide mineralisation that could represent Perseverance-style 'cloud' sulphides occurring near a basal massive sulphide accumulation.
WMG has carefully planned a mix of the two drilling methods at Mulga Tank, using reverse circulation rigs to scout and infill previous drilling and then to prove-up the extent of shallow disseminated nickel sulphide mineralisation.
The outcome of this work is reflected in the company's giant mineral resource modelling released two weeks ago, containing an eye-watering estimated 5.3 million tonnes of contained nickel, 257,000t cobalt, 161,000t copper and 1.1M ounces combined platinum and palladium.
The resource included a stunning combined indicated and inferred total of 1.97 billion tonnes at 0.27 per cent nickel, 131 parts per million (ppm) cobalt, 82ppm copper and 17 parts per billion combined platinum and palladium.
WMG's diamond drilling program comprises specific areas of investigation by testing deeper targets for basal massive sulphides potentially hosting nickel, copper and platinum group elements.
So far, the company has only drilled the relatively shallow disseminated zone within the more densely drilled parts of its central grid over the complex. Ample space is indicated across the magnetic signature of the central complex area for lateral extensions of this zone.
Additionally, the company has only scratched the edge of the possible significance of the multiple north and northwest trending multiple komatiitic feeder/channel system that radiates outwards from the main complex for as much as 15km.
And the company has yet to flesh out the extent of the deeper massive sulphide system that may be lurking at depth in or near the keel of the intrusive complex. The next deep hole will help resolve this.
Under the terms of the two EIS grants, WMG can kick off drilling of the latest holes from June 1 and the work will be included in its exploration plans for the year.
The current nickel price has increased by US$305 (A$478) per tonne since the beginning of the year and is currently US$15,606 (A$24,458) per tonne, offering a great portent for the project's potential.
Is your ASX-listed company doing something interesting? Contact:
matt.birney@wanews.com.au
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
2 days ago
- ABC News
As Western Australia posts worst inflation figures in nation, state government spruiks 'responsible' financial management
Thinking about the cost of living and the pressures of inflation are things we would all rather leave in the past, right? The WA government certainly wants you to. "The inflation beast has been tamed," Treasurer Rita Saffioti said in handing down this year's state budget, with its noted shift away from cost-of-living relief and towards the government's focus on diversifying the state's economy. But has the beast really been tamed? The latest inflation data from the Australian Bureau of Statistics — the authority on these things — showed an improving picture nationally which strengthens the argument for an August interest rate cut. Western Australia was the outlier, recording a 1.9 per cent increase in the cost of living between March and June, and a 2.7 per cent increase over the year — both the highest in the nation. The vast majority of that was caused by a 116.8 per cent increase in power bills, with Commonwealth and state government rebates coming to an end. That has added an extra $550 to most homes' power bills compared to last year. "Thanks to our responsible management of the state finances, we've been able to provide significant cost-of-living relief to Western Australians through the worst of the cost-of-living crisis," was how Ms Saffioti said she saw the inflation numbers. "When excluding the impact of electricity credits being unwound, [quarterly] Perth CPI rose by 0.7 per cent." It is a line the government has often repeated since the budget: if you leave electricity out of inflation calculations, the increases are significantly lower. Which is true, of course — across the rest of the economy, the price shocks of years gone by have significantly settled. At one point, we were seeing annual increases of over eight per cent. "It would be nice to exclude certain increases, [but] that's not the lived experience of people living in Western Australia at the moment," independent economist Conrad Liveris said. Because, while having a less heated economy on the whole is helpful for people making ends meet, it does not change the fact that power bills are going up significantly over the year. That couple of hundred extra dollars will have to come from somewhere. Also not helping is that wages have not kept up with rising prices, as anyone trying to balance a household budget knows. Between March 2020 and March 2025, inflation rose 22 per cent in Perth — but wages rose only 17 per cent. That is among the biggest gaps in the country, despite wage growth in the west being the third strongest around the nation. "Unfortunately, Western Australian families have to pay escalating rents and mortgages whilst wages aren't budging," shadow treasurer Sandra Brewer told a business breakfast on Wednesday. "We've had no productive reforms in this state to drive wages above inflation and create prosperity for the people [since 2017]. "I welcome the lead of Jim Chalmers's roundtable to boost productivity and real wages because we have not seen any initiative from WA Labor." At the end of the day, though, yesterday's inflation numbers show Western Australians not only endured the second-worst increase in cost of living over the past five years, but also the longest period of pressure. "Effectively, in one way, [the electricity credits] delayed the pain that households are experiencing and they'll have to contend with that now," Mr Liveris said. Ripping off the multi-billion-dollar power bill credit band-aids was always going to hurt. The question, which can only be judged with the benefit of hindsight, is whether that support was ultimately well-timed to suppress what could have been an even worse cost-of-living crisis, or whether it could have been better managed to prevent such a harsh end. The next challenge for the government to confront is how to help wages catch up with inflation in the long term and really share the prosperity of the nation's richest state with those who have helped create it.
AU Financial Review
13-07-2025
- AU Financial Review
BCG earned over $1.5m for mothballed Gaza aid project
New York | London | Boston Consulting Group was paid more than $US1 million ($1.5 million) for work with a private US company trying to move food into Gaza by sea, over the same period it began a controversial association with the Gaza Humanitarian Foundation, the Financial Times has learned. A team from the consulting firm worked with Fogbow, an aid delivery group led by US military veterans, on a Qatar-funded project that aimed to sail humanitarian aid on barges into Gaza from Cyprus, according to people familiar with the work.
News.com.au
04-07-2025
- News.com.au
Resources Top 5: Western Mines at starting blocks for extensive Mulga Tank exploration
Phase 4 drilling at Mulga Tank is aimed at infilling and extending the mineral resource estimate DY6 has identified visible natural rutile, including large residual nuggets, at Central Rutile project in Cameroon Six new gold anomalies have been identified at the Burbanks East project in WA's Goldfields Your standout small cap resources stocks for Friday, July 4, 2025 Western Mines Group (ASX:WMG) At the starting blocks for the resumption of exploration at Mulga Tank nickel-cobalt-copper-PGE project in WA's Eastern Goldfields is Western Mines Group, which increased 40% to 28c. A team has mobilised to the site on the Minigwal Greenstone Belt to prepare for a phase 4 RC drilling program aimed at infilling and extending the mineral resource estimate within the main body of the Mulga Tank Complex. The 1.968Bt MRE for Mulga Tank contains 5.3Mt of nickel, 257,000t of cobalt, 161,000t of copper and 1.1Mt of platinum+palladium. WMN also plans high-impact diamond drilling targeting the western margin of the complex following a prospectivity review of the basal contact. The extensive exploration program in the second half of 2025, funded by a recent $1.287m capital raise and $440,000 in WA Exploration Incentive Scheme (EIS) grants, will include a Down Hole ElectroMagnetic (DHEM) survey and follow-up diamond drilling around MTRC046 which previously returned shallow high-grade intersections. Two diamond holes targeting komatiite channels within tenement E39/2134 will be drilled with the aid of an EIS grant and a further EIS-funded deep diamond hole will test revised interpretation and a basal MobileMT anomaly in the centre of the complex. A DHEM survey crew is scheduled to mobilise to site in the coming weeks to survey a number of phase 3 RC holes including MTRC046 5m that returned 1.92% Ni and 0.21% Cu from 283m, and MTRC055 with 4m at 1.16% Ni and 0.13% Cu from 182m, including 1m at 2.46% Ni and 0.43% Cu from 183m. Ongoing exploration modelling, targeting work and results from the DHEM surveys will likely add further drill holes as the programs progress. 'The team is looking forward to getting back on site to commence further drilling at the Mulga Tank Project,' WMG MD Dr Caedmon Marriott said. 'It has been just under nine months since we completed the phase 3 RC program and the company has tried to carefully manage capital through the current trough in nickel prices. 'We've planned a combination of further RC and diamond drilling for the third quarter of 2025. 'With a significant initial mineral resource defined, the company can now 'swing the bat' a bit with further diamond holes testing for basal massive sulphide accumulations in what we believe is a hybrid Type 1-2 system. DY6 Metals (ASX:DY6) A strong performance from DY6 Metals, which moved 35.6% higher to 21c and has more than doubled this week, prompted a price and volume query from the ASX with the company now in a trading halt pending a response. On June 30, DY6 announced that it had identified visible natural rutile, including large residual nuggets, at the Central Rutile project within the Bounde licence in Cameroon. The rutile was observed in alluvial and eluvial sources in a new area during a reconnaissance sampling program with the nuggets ranging in size from 2cm to more than 4cm. Heavy minerals and residual rutile mineralisation were encountered over a 100km2 area. The reconnaissance program consisted of some auger drilling and the collection of channel, surface grab and stream sediment samples. Samples are being prepped for laboratory analysis in Cape Town, South Africa, with results expected in the September quarter. The identification of rutile across the entire tenement package is highly encouraging for DY6 as it confirms that this region is an emerging, globally significant rutile province. 'The reconnaissance program has been a great success, having identified visual HM and rutile mineralisation across each licence,' technical consultant Cliff Fitzhenry said. 'What we have uncovered at the Bounde licence is particularly exciting. I have never seen rutile nuggets of this size before.' The target mineralisation type at Central Rutile is in-situ, residual, saprolite-hosted natural rutile analogous to Sovereign Metals (ASX:SVM) Tier-1 Kasiya deposit in Malawi – the world's largest primary rutile deposit at 1.8Bt at 1.0% rutile. The project borders Peak Minerals (ASX:PUA) Minta rutile project where initial sampling revealed valuable heavy minerals up to 93% of total heavy minerals, with the dominant VHMs being rutile (up to 69.8%). Exploration is moving to the next phase with a systematic regional soil sampling program seeking to identify areas of higher-grade residual rutile. Future Battery Minerals (ASX:FBM) Hitting a new 12-month high of 3.5c, a jump of 75% on the previous close, was Future Battery Minerals after an extensive review of historical exploration drilling and surface sampling data at the Burbanks East project in WA's Goldfields identified six new gold anomalies. Investigation into shallow aircore and rotary blast drilling conducted by companies such as Croesus Mining, Monarch Resource, Mt Kersey Mining and Cazaly Resources, highlighted a number of gold intercepts within regolith including: 8m at 3.37g/t gold from 32m; 6m at 1.84g/t Au from 44m; and 10m at 0.9g/t Au from 36m, including 2m at 3.1g/t Au. While most of the drilling is shallow and wide spaced, many of the anomalous intercepts are poorly understood or not closed out and remain open to future testing. FBM managing director and CEO Nick Rathjen said Burbanks East represented a compelling exploration opportunity complementary to its existing gold focused exploration strategy at Miriam. 'We see Burbanks East adding further gold upside to the Coolgardie project and are currently undertaking a litho-structural review targeting prospective bedrock structures and intrusions to generate drill-ready targets at the project.' Cavalier Resources (ASX:CVR) The appointment of Colin Bald as general manager of operations for the Crawford Gold Project near Leonora in WA has seen Cavalier Resources garner some investor support with shares at 23.5c, a 17.5% lift on the previous close. Bald brings more than 30 years of experience in the start-up, operation and closure of open pit projects worldwide, including experience in gold in WA in quarry manager and mine superintendent roles. He will contract to CVR through his company, Quarry Management Services WA, and will transition from Perth-based work to the Crawford site as the start-up of stage 1 nears. The company recently revised a PFS, incorporating higher gold prices and updating the mining and heap leach capital cost estimates, generating the following outputs: Stage 1 project life 18 months; Capital payback 9 months; Gross revenue A$103.6m; Production of 23,467 recovered ounces, Lowest quartile C1 AISC of A$1,574/oz, C3 AISC of A$1,793; NPV8 of A$51.7m; and IRR of 580%. Peak Minerals (ASX:PUA) After raising $3.5 million through a strategic placement to a European-based investor at 3.5c per share Peak Minerals reached 5.4c, a new high of more than six years and an increase of 25.6% on the previous close. 'This $3.5 million placement represents a strong endorsement of the scale and potential of the Minta rutile project and provides the funding necessary to accelerate exploration and development activities on the ground in Cameroon,' Peak Minerals CEO Casper Adson said: "Importantly, the placement was completed with no discount to the last market closing price, which happened to be at a multi-year high, and will be subject to a voluntary escrow of 12 months from the date of issue, reflecting strong confidence in the Minta rutile project. 'The support from a strategic European-based investor highlights the increasing international interest in Peak Minerals and underscores the significance of the high-value rutile, monazite and zircon discovery at Minta.'
