Western Mines Group (ASX:WMG) has expanded its 18-hole reverse circulation (RC) drilling program to 22-holes at the Mulga Tank Project in Western Australia.
After a pause in drilling to set up the remaining pre-collars, the rig is spinning once more, with 10 holes completed to date.
The $19.7 million market capitalisation company says the expanded program will test the extent of shallow disseminated nickel sulphide mineralisation across the Mulga Tank Ultramafic Complex.
Meanwhile, Western Mines has struck a drilling-for-equity deal with its drilling contractor, Blue Spec.
Western Mines says owing to an ‘excellent’ working relationship, Blue Spec has agreed to subscribe for 760,000 new ordinary shares in Western Mines Group for $250,000 at an implied value of $0.3289 per share, subject to shareholder approval.
This deal will support Western Mines’ ongoing RC drilling program.
Drillholes are spread over a 2,500m-by-1,000m area in the centre of the main body of the complex, at a 500m-by-300m spacing. The drilling will attempt to drill to a 300m target depth.
Western Mines reports hole MTRC009 was drilled to a depth of 522m and is understood to be the deepest RC hole Blue Spec has ever drilled in Australia.
The company has observed that hole MTRC009 hosts ‘significant’ disseminated sulphide mineralisation.
Western Mines Group Managing Director Caedmon Marriott says drilling is progressing well and is anticipated to be completed by early November, with each hole taking around one to 2 days to complete.
“We’ve expanded the initial 18-hole program, adding some additional holes on the eastern margin around hole MTD027 — the program now aims to test a ~2,500m x ~1,000m area.
We have a great relationship with Blue Spec Drilling, who have conducted all our drilling at the project to date. Blue Spec have agreed to support the company by taking $250,000 worth of shares, subject to shareholder approval. This will fund a significant amount of the RC program.”
“We have a great relationship with Blue Spec Drilling, who have conducted all our drilling at the project to date”
The company’s flagship Mulga Tank project is prospective for nickel, copper, and platinum group elements in the eastern Yilgarn Craton of Western Australia.
Western Mines Group is a diversified minerals exploration company focused on discovering ‘high-value’ gold and nickel sulphide deposits in major mineral belts of Western Australia.
As of 30 June 2023, Western Mines had $3.272 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Western Mines Group
