Shares in nickel explorer Western Mines Group (ASX:WMG) have jumped more than 20% this morning amid a developing nickel rally and the return of assays from the company’s Mulga Tank Project in Western Australia.
The continued run follows yesterday’s activity, which saw Western Mines shares close 22% higher at $0.22. Shares in Western Mines are currently trading at $0.265 each.
Western Mines, which has a $16.51 million market capitalisation, says it has posted additional nickel intercepts from phase two reverse circulation drilling at Mulga Tank.
The latest batch of results, generated from a further three holes, demonstrate zones of nickel sulphide mineralisation with associated elevated sulphur, as well as copper and platinum group elements.
Hole MTRC038 in particular returned intervals at up to 3.16% nickel and 1.2% copper.
Managing Director Dr Caedmon Marriott says the results continue to highlight the extent of the mineral system Western Mines is dealing with.
“This southwest area is emerging as an exciting area for follow-up drilling targeting richer and thicker zones of massive sulphide accumulations along with a number of other high-grade pods/zones encountered across the Mulga Tank Complex as we increase drilling density,” Marriott says.
Today’s results follow the company on 10 April 2024 flagging several zones of matrix-massive sulphide mineralisation at Mulga Tank, as reported by Mining.com.au.
According to Trading Economics, nickel rose above the US$18,300 per tonne threshold on 10 April 2024, before dropping back down to the US$17,800 mark.
As of yesterday, the price of nickel is on an upwards trajectory at just shy of the US$18,000 per tonne level.
The recent rise of nickel is testament to fears of tighter supply following the US and UK issuing new sanctions on Russian metals, prohibiting metal-trading exchanges from accepting new aluminium, copper, and nickel produced by the country.
As of 31 December 2023, Western Mines had $2.1 million in cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Western Mines Group
