Western Mines Group expands Mulga Tank nickel-copper-PGE project
The series of geophysical surveys are intended to de-risk targets ahead of Western Mines’ planned maiden drilling program.
Western Mines Group (ASX: WMG) has more than tripled the size of its flagship Mulga Tank nickel-copper-platinum group elements (PGE) project in Western Australia through the acquisition of neighbouring land.
The company today announced it has entered into a binding agreement to acquire 100% of ground held by Duketon Mining (ASX: DKM) which is contiguous to the current Mulga Tank project area located 190 kilometres east-northeast of Kalgoorlie.
The acquisition expands Mulga Tank from 113 square kilometres to 395sq km, covering about 37km strike and the majority of the underexplored Minigwal Greenstone Belt.
Western Mines said the new ground contains a 12km trend of interpreted ultramafic bodies on the western basal portion of the Minigwal Greenstone Belt, representing a potential feeder system for the Mulga Tank dunite intrusion which is 100% owned by the company.
This trend is considered prospective for nickel-copper-PGE magmatic sulphide mineralisation, while the rest of the Minigwal belt is considered prospective for orogenic gold mineralisation.
Western Mines managing director Caedmon Marriott said the acquisition transforms the flagship project to ‘belt scale’ and gives the company a great footprint across the underexplored Minigwal belt.
“Our ongoing moving loop electromagnetic (MLEM) survey is progressing well with the southern sector complete and infill lines in progress over a number of bedrock conductor targets identified,” he added.
Acquisition terms
Consideration payable to Duketon for the ground is 500,000 fully paid shares in Western Mines and 500,000 options with an exercise price of $0.30 per share and a two-year expiry, plus a 1% net smelter royalty in respect of any minerals extracted and recovered from the tenement.
Completion of the acquisition is expected to occur within 35 days or such other date as agreed between the parties.
MLEM survey
Western Mines commenced a high-powered MLEM survey at the Mulga Tank project in early October. To date, the crew has completed the southern sector of the intrusion covering about 8.5sq km, along 20.6 line km.
Once infill lines have been completed across a number of identified bedrock conductors, the crew will move on to the central section of the survey area.