Western Mines (ASX:WMG) - Building Australia's Next Major Nickel Resource

Interview with Caedmon Marriott, Managing Director of Western Mines Group

Our previous interview: https://www.cruxinvestor.com/posts/nickel-about-to-get-shoved-upwards-by-funds-4741

Recording date: 4th of December, 2024

Western Mines Group is making significant strides in developing its Mulga Tank nickel sulphide discovery in Western Australia, positioning itself to meet the growing demand for battery-grade nickel. Since its IPO in July 2021, the company has completed an extensive drilling campaign of 81 holes totaling 36,000 meters, revealing a substantial nickel sulphide system with dual potential for both large-scale and high-grade resources.

The company's systematic exploration has confirmed Mulga Tank as a significant Type 2 disseminated nickel sulphide system, with potential to host 3 to 5 million tons of contained nickel. More importantly, recent drilling has yielded 23 intersections above 1% nickel, with grades reaching up to 4.5% in semi-massive sulphides, suggesting the presence of valuable high-grade zones within the broader system.

Managing Director Caedmon Marriott highlights the significance of these high-grade findings, noting that if the company can prove up shallow pods of 30,000-50,000 tons of nickel at 1.5% to 2% grade in the top couple hundred meters, it could enable Western Mines to become a junior producer without requiring the substantial capital expenditure typically associated with large, low-grade operations.

The Mulga Tank project, located under 60 meters of sand cover, had limited historical exploration despite 10 out of 12 previous holes intercepting nickel sulphide mineralization. Western Mines has invested approximately A$9 million in exploration to date, adopting a strategic approach that combines systematic step-out drilling with targeted infill drilling to define both the system's extent and high-grade zones.

With a current market capitalization of $15 million, Western Mines sees significant upside potential as it advances toward resource definition and metallurgical studies. The company's focus on a stable, mining-friendly jurisdiction positions it favorably to meet growing demand for ESG-compliant nickel supply, particularly from the electric vehicle and renewable energy storage sectors.

The project's advancement comes at a crucial time in the nickel market, where supply chain security and environmental compliance are becoming increasingly important. Unlike the majority of global nickel production from laterite deposits in countries like Indonesia and the Philippines, Mulga Tank represents a potential new source of sulphide nickel in a tier-one jurisdiction, addressing growing concerns about secure and environmentally responsible nickel supply for the battery sector.

Learn more: https://www.cruxinvestor.com/companies/western-mines-group

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