Western Mines Group Limited (ASX:WMG) Phase 3 RC results yield broad sulphide mineralisation zones

13/9/2024

Price Sensitive Announcement $

Overview:

Western Mines Group Ltd has updated shareholders on geochemical assay results recently received for the first four Phase 3 reverse circulation (RC) drill holes at the Mulga Tank Project, on the Minigwal Greenstone Belt, in Western Australia’s Eastern Goldfields.

Assay results have been received for holes, MTRC040 to MTRC043, which looked to infill around previous
drilling in the core area of the Complex, particularly around Phase 1 RC hole MTRC016. Results from all four holes highlight broad intersections of nickel sulphide mineralisation, with all holes ending in mineralisation.

MTRC040 is of particular interest, drilled to a total depth of 438m, with extensive visible disseminated sulphides observed. The hole returned cumulative mineralisation of 298m at 0.29% Ni, 131ppm Co from 106m that included some shallow, higher-grade intervals of 54m at 0.34% Ni, 148ppm Co from 150m, with 12m at 0.42% Ni, 184ppm Co from 157m and 10m at 0.46% 152ppm Co from 177m.

This hole appears to extend the intersection of shallow, higher-grade mineralisation from nearby Phase 1 hole MTRC016 of 38m at 0.44% Ni, 174ppm Co from 159m, including 13m at 0.53% Ni, 208ppm Co from 183m, and diamond hole MTD029 (EIS3) of 58m at 0.34% Ni, 138ppm Co from 204m, including 8m at 0.48% Ni, 147ppm Co from 210m and 10m at 0.40% Ni, 172ppm Co from 232m. Similar, higher-grade intersections around this depth are also seen in neighbouring holes MTRC041, MTRC042, MTRC043 and MTD026 (EIS2).

Highlights:

• Geochemical assay results received for Phase 3 RC holes MTRC040 to MTRC043 at Mulga Tank
• All holes show broad zones of nickel sulphide mineralisation – elevated Ni and S coincident with
  highly anomalous Cu and PGE:
  MTRC040 Cumulative 298m at 0.29% Ni, 131ppm Co, 65ppm Cu, 16ppb Pt+Pd with S:Ni 1.1*
  MTRC041 Cumulative 254m at 0.27% Ni, 133ppm Co, 81ppm Cu, 20ppb Pt+Pd with S:Ni 1.3*
  MTRC042 Cumulative 238m at 0.29% Ni, 133ppm Co, 96ppm Cu, 23ppb Pt+Pd with S:Ni 1.1*
  MTRC043 249m at 0.28% Ni, 129ppm Co, 62ppm Cu, 14ppb Pt+Pd from 111m S:Ni 0.8*
• Holes aimed to infill within the core of the Mulga Tank Complex – all holes ended in mineralisation
• Shallow zone of higher grade mineralisation emerging around Phase 1 hole MTRC016 now drilled
  at approximately 100m x 100m spacing:

  MTRC016 38m at 0.44% Ni, 174ppm Co, 253ppm Cu, 57ppb Pt+Pd from 159m
  inc. 13m at 0.53% Ni, 208ppm Co, 368ppm Cu, 56ppb Pt+Pd from 183m
  MTRC040 54m at 0.34% Ni, 148ppm Co, 150ppm Cu, 31ppm Pt+Pd from 150m
  inc. 12m at 0.42% Ni, 184ppm Co, 302ppm Cu, 41ppb Pt+Pd from 157m
  that inc. 10m at 0.46% Ni, 152ppm Co, 114ppm Cu, 55ppb Pt+Pd from 177m
  MTRC041 6m at 0.34% Ni, 161ppm Co, 153ppm Cu, 30ppm Pt+Pd from 116m
  19m at 0.34% Ni, 149ppm Co, 124ppm Cu, 45ppm Pt+Pd from 175m
  inc. 3m at 0.48% Ni, 162ppm Co, 189ppm Cu, 134ppb Pt+Pd from 175m
  MTRC042 4m at 0.40% Ni, 170ppm Co, 395ppm Cu, 33ppm Pt+Pd from 158m
  25m at 0.32% Ni, 123ppm Co, 189ppm Cu, 7ppb Pt+Pd from 177m
  MTRC043 11m at 0.37% Ni, 143ppm Co, 99ppm Cu, 29ppm Pt+Pd from 188m
  7m at 0.35% Ni, 168ppm Co, 155ppm Cu, 28ppm Pt+Pd from 216m

• WMG continues to de-risk a potentially globally significant, large-scale, open-pitable nickel
  sulphide deposit at Mulga Tank

Company Notes:

Commenting on the RC assay results, WMG Managing Director Dr Caedmon Marriott said:
“A great start to assay results from our Phase 3 RC program. The aim of these first four holes was to infill around hole MTRC016 within the core area of the Phase 1 and 2 drilling – looking to increase confidence in this zone. All the holes showed robust intervals of consistent nickel sulphide mineralisation with strong results for sulphur and chalcophile elements. This central zone has now been drilled to approximately 100m x 100m spacing which will aid resource evaluation.

A secondary aim of the infill was to look to extend the zone of higher-grade mineralisation seen in hole MTRC016 around 160m depth. This was based on feedback from Dundee Corporation’s due diligence work – we are looking to target shallow higher-grade zones around 0.40% Ni that could form areas for starter pits in a mine model. Whilst this zone was modelled conceptually in our JORC Exploration Target implicit modelling, follow-up drilling results have now successfully demonstrate the continuation of this zone, with hole MTRC040 in particular returning 54m at 0.34% Ni from 150m, including 12m at 0.42% Ni from 157m and 10m at 0.46% Ni from 177m. A relatively flat lying zone around this depth can be traced fairly extensively across holes MTRC041, MTCR042, MTRC043, MTD026 (EIS2), MTD029 (EIS3) and even to holes MTRC024 and MTRC032.

A regular flow of assay results is expected from the Phase 3 program throughout this month. In addition, the remaining core from diamond hole MTD029 (EIS3) is in the process of being transported to Kalgoorlie for cutting and sampling, and these assay results will follow on from the Phase 3 RC at a future date.”

Full ASX Announcement: WMG Mulga Tank First Phase 3 Assay Results 130924 FINAL (discoveryalert.com.au)