Progress update on diamond drilling at Mulga Tank project

Western Mines Group Ltd (WMG) (ASX: $WMG) has provided an update on the progress of diamond drill hole MTD029 (EIS3) at the Mulga Tank Ni-Cu-PGE Project, on the Minigwal Greenstone Belt, in Western Australia's Eastern Goldfields. The hole has intersected approximately 700m of high MgO meso-adcumulate dunite with disseminated nickel sulphide mineralisation and numerous sets of remobilised nickel sulphide veinlets. The first 600m of core has been sampled and submitted to the laboratory for geochemical assay, and the top portion of the hole has been drilled with wider diameter HQ core, with a ~70kg sample also taken for preliminary metallurgical test work.

Executive commentary on drilling progress

Diamond hole MTD029 (EIS3) is currently over 750m depth and is achieving steady progress. Sulphide mineralisation is encountered nearly everywhere we drill and this hole is continuing that trend with cumulatively around ~300m of disseminated and blebby sulphide mineralisation observed so far, similar to the other deep diamond holes drilled last year. The hole has already encountered numerous remobilised sulphide veinlets. These appear oblique to the drill core, producing some nice longer intersections of the sulphide filled veins and in places occur as sets of veins. Measurements suggest a possible source at depth below the current drilling. The high grade and tenor of sulphide vein fill is confirmed by spot pXRF readings up to 42% Ni.

Summary of diamond drilling update and outlook

The diamond drilling update at the Mulga Tank project indicates significant progress with the intersection of high MgO meso-adcumulate dunite containing disseminated nickel sulphide mineralisation and remobilised nickel sulphide veinlets. The first 600m of core has been sampled and submitted to the laboratory for geochemical assay, and a ~70kg sample has been taken for preliminary metallurgical test work. The drilling program aims to target a MobileMT anomaly around -700m RL, close to the basal contact, and further results are expected as the hole is completed. The Company's previous drilling programs have demonstrated significant nickel sulphide mineralisation and an extensive nickel sulphide mineral system within the Mulga Tank Ultramafic Complex. WMG's exploration work has discovered significant nickel sulphide mineral system and is considered highly prospective for globally significant Ni-Co-Cu-PGE deposits. The Company looks forward to updating shareholders on the continuing progress at Mulga Tank as further results are received.