Western Mines Group (WMG) has announced the “pivotal discovery” of a significant nickel system, causing a spike in the company’s share price.
The gold and nickel exploration company aimed to test drill the deepest part of a particular grant at its flagship WA Mulga Tank project to gather geological data. The result was the discovery of an extensive nickel sulphide system.
The ASX reacted in kind to the news of the discovery.
After closing Tuesday at $0.115 per share, WMG clocked in $0.315 per share on Wednesday, a 110 per cent increase in performance for the week.
Located in the Eastern Goldfields of WA, WMG’s Mulga Tank is considered highly prospective for nickel, copper, and platinum-group elements.
“(The drill hole) MTD023 was a big hole for WMG, in more than one sense,” WMG managing director Caedmon Marriot said.
“With the aid of our EIS (Exploration Incentive Scheme) grant we simply aimed to drill the deepest part of the complex – to gather the greatest amount of geological information we could.
“It could well be a pivotal hole for the company, with these assay results confirming the visual observations of extensive disseminated nickel sulphide mineralisation.
“The hole validates our geological model of the complex and really demonstrates a significant working nickel sulphide mineral system with huge volumes of mineralised ultramafic magma.”
WMG technical director Ben Grguric said the geological data “bodes extremely well for the prospectivity of the project”.
“Every new drill hole in the main Mulga Tank dunite body is showing broad intersections of disseminated sulphide together with scattered intersections of high-grade remobilised nickel sulphide,” he said.
“These are clearly hallmarks of a very large mineralised system.”
The company has indicated it is currently undertaking a diamond drilling program to test a number of follow-up targets.