Western Mines Group begins much anticipated drilling program at Mulga Tank
Western Mines Group (ASX: WMG) has kicked-off drilling at its flagship Mulga Tank nickel-copper-platinum group element project in Western Australia’s eastern goldfields.
The program has been expanded to 10 diamond drill holes for 4,050m, following further targeting work at the NW3 Conductor target.
Western Mines says numerous “exciting drill targets” have been defined at the project.
Additional follow-up drill holes will be planned based on initial portable XRF (pXRF) and down hole electromagnetic (DHEM) results as the program advances.
Western Mines managing director Caedmon Marriott said with drilling starting at Mulga Tank, the company had entered an “exciting three-to-four month period”.
“Each hole will take between eight to 15 days to complete, depending on depth, and we will update shareholders on significant news flow as the program progresses.”
The drilling program is the culmination of months of technical and preparation work at the project.
Iron ore rights sale to fund expanded drilling
To fund expanded drilling, Western Mines has also completed the sale of iron ore rights covering its Pavarotti nickel project to miner Mineral Resources (ASX: MIN).
In consideration for the iron ore rights, Mineral Resources has paid $200,000 to Western Mines, which retains ownership of all nickel-copper-PGE.
Pavarotti is located on the western side of the Koolyanobbing Greenstone Belt and Mr Marriott says selling the iron ore rights would unlock hidden value at the project.
Western Mines also retains a 1.25% royalty on any iron produced from the project.
Mr Marriott said the cash proceeds from the iron ore rights sale to Mineral Resources would be received this week and will go towards expanded drilling at Mulga Tank.
Mulga Tank is on the Minigwal Greenstone Belt, which Western Mines describes as underexplored.
Limited previous exploration at Mulga Tank has provided “significant evidence” of a sulphide mineral system prospective for nickel-copper-PGE.
Western Mines is also exploring for gold at Melita, Jasper Hill, Youanmi, Rock of Ages, Broken Hill Bore and Pinyalling, which are also located in WA.