Announcement PDF WESTERN MINES GROUP LTD ACN 640 738 834 ANNUAL REPORT 30 JUNE 2023 Western Mines Group Ltd Corporate Directory 30 June 2023 Directors Mr Rex Turkington (Non-Executive Chairman) Dr Caedmon Marriott (Managing Director) Mr Francesco Cannavo (Non-Executive Director) Dr Benjamin Grguric (Non-Executive Director) Company Secretary Mr Ian Gregory Registered Of ce Level 3, 33 Ord Street, West Perth WA 6005 Principal Place of Business Level 3, 33 Ord Street, West Perth WA 6005 Tel: +61 475 116 798 Email: contact@westernmines.com.au Share Register Automic Group, Level 5, 126 Phillip Street Sydney NSW 2000 Tel: 1300 288 664 Auditor HLB Mann Judd (Vic) Partnership Level 9, 550 Bourke Street Melbourne VIC 3000 Solicitors Moray & Agnew Lawyers Level 6, 505 Collins Street, Melbourne VIC 3000 Stock Exchange Listing Western Mines Group Ltd shares are listed on the Australian Securities Exchange (ASX code: WMG) fi 1 Western Mines Group Ltd Letter from the Chairman 30 June 2023 LETTER FROM THE CHAIRMAN I am pleased to report that the last nancial year has been an exciting and transformational one for your Company. We have continued to focus on our agship Mulga Tank Ni-Cu-PGE Project, where we have recently demonstrated the discovery of a signi cant nickel sulphide mineral system, with an extensive footprint across the Mulga Tank Ultrama c Complex. With the aid of our Exploration Incentive Scheme (EIS) grant the Company was able to drill two deep diamond holes through the centre of the Mulga Tank intrusion. Both of these showed extensive visible nickel sulphide mineralisation returning assay results of MTD023 (EIS1) 693.5m at 0.28% Ni, 128ppm Co, 61ppm Cu, 27ppb Pt+Pd with S:Ni 1.1 and MTD026 (EIS2) 840m at 0.28% Ni, 140ppm Co, 103ppm Cu, 24ppb Pt+Pd with S:Ni 1.6. There is clearly a signi cant Mt Keith-style disseminated sulphide system within the Mulga Tank Complex and encouragingly broad intervals of shallow mineralisation are seen in the top 250 vertical metres that could potentially be amenable to large scale open pit mining, especially considering the sand cover is essentially “freedig” overburden - for example MTD026 returned 130m at 0.31% Ni from 116m, including 13m at 0.35% Ni from 157m. The addition of Technical Director Dr Ben Grguric to our Board and exploration team during the year has signi cantly enhanced our capabilities. As a leading expert on WA nickel sulphide exploration, in particular Mt Keith-style disseminated mineralisation, Ben brings with him a wealth of experience in nickel and gold exploration and development, with a distinguished 25 year track record here in WA. The Company successfully completed two capital raises during the year, raising a total of $3.4m, which along with the frugal and ef cient use of last years IPO funds, has enabled us to vigorously drill and explore the exciting Mulga Tank Project. We hope to continue to deliver further positive results from the project over the coming months. On behalf of the Board, I would like to thank you for your interest and your ongoing support. ___________________________ Rex Turkington Non-Executive Chairman fl fi fi fi fi fi fi 2 Western Mines Group Ltd Review of Operations 30 June 2023 REVIEW OF OPERATIONS Western Mines Group Ltd (WMG or Company) (ASX:WMG) is pleased to provide shareholders with the following Review of Operations for the nancial year ended 30 June 2023. The Company’s principal focus for the year was the agship Mulga Tank Ni-Cu-PGE Project where results during the period demonstrate the discovery of a major nickel sulphide mineral system. Extensive disseminated nickel sulphide mineralisation has been encountered in a number of drill holes, characteristic of the Type 2 Mt Keith-style model. Numerous intersections of thin, high-tenor massive sulphide veins and immiscible globules were also observed in the drill core, suggesting the strong likelihood that there is actually a hybrid Type 1/2 Perseverance-style system within the Mulga Tank Complex, with the possibility of discovering basal massive sulphide deposits at depth - greatly enhancing the prospectivity of the project. The Mulga Tank Phase 2 diamond drilling program commenced at the end of November 2022 (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022), with continuous exploration drilling at the project over the last ten months. The program has included two deep co-funded EIS holes that were drilled with the aid of WMG’s EIS award (ASX, WMG Wins $220,000 EIS Award to Drill Mulga Tank, 17 October 2022). The two EIS holes MTD023 (EIS1) and MTD026 (EIS2) were designed to test the centre of the Mulga Tank Ultrama c Complex, drilling the inferred deepest part, in order to capture and characterise a complete crosssection of the intrusion. Both holes were drilled to >1,400m and intersected signi cant intervals of disseminated sulphide mineralisation along with remobilised massive sulphide veinlets (ASX, Completion of EIS Hole MTD023, 6 March 2023; Completion of MTD026 and Upcoming MobileMT Survey, 27 June 2023). Assay results from the holes highlight multiple broad intersections of disseminated nickel sulphide mineralisation (ASX, MTD023 Assays Con rm Discovery of Signi cant Nickel System, 5 April 2023; MTD026 Assays - 840m of Nickel Sulphide Mineralisation, 30 August 2023), which cumulatively totalled: MTD023 (EIS1) 693.5m at 0.28% Ni, 128ppm Co, 61ppm Cu, 27ppb Pt+Pd with S:Ni 1.1 MTD026 (EIS2) 840m at 0.28% Ni, 140ppm Co, 103ppm Cu, 24ppb Pt+Pd with S:Ni 1.6 Subsequent to the year end the Company has completed a further deep diamond hole MTD027, in a previously undrilled area on the eastern margin of the Complex, which also encountered >950m of visible sulphide mineralisation (ASX, MTD027 Expands Mineralisation 4km Across Mulga Tank, 28 August 2023). Together with EIS holes MTD023 (~1.7km to WNW) and MTD026 (~1km to WSW), hole MTD027 further demonstrates a very extensive magmatic nickel sulphide mineral system within the Mulga Tank Complex, which has now been shown across the entire ~4.5km wide main body. The Company successfully completed two capital raises during the year, raising $693,750 in November 2022, through a placement of 5,550,000 shares at $0.125 per share to cornerstone investor Equentia Natural Resources ($550,000) and Company Directors Marriott, Cannavo and Grguric; with a second raising of $2,726,630 (before costs) through the issue of 8,019,500 shares at $0.34 per share in April 2023. The Company was active with eld exploration and targeting work across a number of its other projects. Field reconnaissance work and high-resolution ground magnetic surveys were completed at the Jasper Hill and Youanmi Gold Projects. Satellite based remote sensing work, targeting both gold and lithium pegmatite mineralisation, was also completed at the Jasper Hill and Pinyalling Projects. fi fl fi fi fi fi fi 3 Western Mines Group Ltd Review of Operations 30 June 2023 MULGA TANK The Mulga Tank Project comprises exploration licences E39/2132 and E39/2223 and exploration licence application E39/2299, covering 395km2 of the Minigwal Greenstone Belt, 190km east-northeast of Kalgoorlie. The Minigwal Greenstone Belt is a NNW trending linear sequence of predominantly ma c and ultrama c lithologies; it is very under explored due to the presence of shallow sand cover and presents a “frontier” exploration opportunity for major Ni-Cu-PGE and orogenic gold deposits. WMG has been undertaking an ongoing diamond drilling program at the Mulga Tank Project since November 2022 (ASX, Phase 2 Drilling has Commenced at Mulga Tank, 28 November 2022), with exciting exploration results demonstrating signi cant nickel sulphide mineralisation and an extensive nickel sulphide mineral system within the Mulga Tank Ultrama c Complex (ASX, MTD023 Assays Con rm Discovery of Signi cant Nickel Sulphide System, 5 April 2023; MTD026 Assays - 840m of Nickel Sulphide Mineralisation, 30 August 2023; MTD027 Expands Mineralisation 4km Across Mulga Tank, 28 August 2023). This program has included two deep co-funded EIS diamond holes that have been drilled with the aid of WMG’s EIS award (ASX, WMG Wins $220,000 EIS Award to Drill Mulga Tank, 17 October 2022). A second multipurpose RC drill rig has recently mobilised to site and has commenced a systematic shallow drilling program across the centre of the main body of the Complex looking to build on these results to date. DRILLING RESULTS Holes MTD022, MTD023 (EIS1), MTD024, MTD025 and MTD026 (EIS2) were completed during the year, with hole MTD027 completed after the end of the period (ASX, Nickel Sulphide Mineralisation Seen in Hole MTD022, 14 December 2022; Completion of EIS Hole MTD023, 6 March 2023; Completion of Hole MTD024 At Mulga Tank, 28 March 2023; MTD025 Extends Nickel Mineralisation, 17 April 2023; Completion of MTD026 and Upcoming MobileMT Survey, 27 June 2023; MTD027 Expands Mineralisation 4km Across Mulga Tank, 28 August 2023). Hole MTD022 was designed to test the centre of the W Conductor MLEM anomaly (~2,000-3,000S) and followup on Phase 1 holes MTD012 and MTD013 that showed multiple occurrences of visible nickel sulphide veins (ASX, Two Zone of Visible Nickel Sulphides in Hole MTD012, 4 May 2022; Multiple Zones of Visible Nickel Sulphides in Hole MTD013, 16 May 2022). MTD022 and MTD022W1 intersected a ~506m thick package of high MgO adcumulate dunite ultrama c containing disseminated magmatic sulphides (trace to 2%) that in places coalesced into interstitial blebs (3 to 5% sulphide). The sulphides started from ~120m downhole, with multiple broad +10m zones with pXRF readings >0.4% Ni (ASX, Nickel Sulphide Mineralisation Seen in Hole MTD022, 14 December 2022). Towards the end of the hole, near the basal contact of the complex, three intersections of high-tenor remobilised massive nickel sulphide were observed (con rmed by spot pXRF readings up to 57% Ni). These remobilised sulphide intersections (10-30cm in width) were signi cantly larger than those previously seen in holes MTD012 and MTD013. Hole MTD023 (EIS1) was designed to test the centre of the Mulga Tank Complex, drilling the inferred deepest part, in order to capture and characterise a complete cross-section of the intrusion. fi fi fi fi fi fi fi fi fi 4 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 1: Mulga Tank disseminated sulphide mineralisation The hole was drilled to a total depth of 1,401.3m and intersected ~1,200m of variably serpentinised and locally talc-carbonate altered high MgO adcumulate to extreme adcumulate dunite ultrama c (56.5-1,299m), beneath 56.5m of sand cover (0-56.5m), before encountering a footwall of predominantly basalt and minor shales at 1,299m depth (ASX, Completion of EIS Hole MTD023, 6 March 2023). Disseminated magmatic sulphides (trace to 2%) were observed down the majority of the hole for ~623m, starting from around 156m depth. In a number of places the disseminated sulphides coalesced into coarser interstitial blebs (3 to 5% sulphide) between former olivine crystals and also approached net textured (~10% sulphide). At the base of the hole multiple intersections of remobilised massive nickel sulphide veinlets were observed (1,220-1,291m) (ASX, Completion of EIS Hole MTD023, 6 March 2023). Hole MTD024 was designed to test DHEM and MLEM geophysical anomalies in the Panhandle area of the Mulga Tank Ultrama c Complex. The Panhandle is interpreted to represent komatiite ow sequences extending from the main body of the Complex. fl fi fi 5 Western Mines Group Ltd Review of Operations 30 June 2023 MTD024 intersected a ~450m assemblage of komatiite ultrama c and interbedded basalts, cherts and sulphidic black shales. The hole supports WMG’s geological model for the Complex and Panhandle area, however the highly variable sequence of ows suggests the hole targeted a distal ank environment away from a main komatiite channel. An intersection of remobilised nickel sulphide blebs and veinlets was seen at 573m depth but DHEM and MLEM geophysical anomalies tested by the hole are thought to be explained by intersections of semi massive pyrrhotite seen within black shales at target depths of 515m and 659m. Hole MTD025 was designed to test a DHEM geophysical anomaly and follow-up on Phase 1 hole MTD018. The DHEM survey identi ed a strong (~5,000-15,000S) shoot-like offhole anomaly. MTD025 intersected a ~446m thick package of high MgO adcumulate dunite ultrama c. Two shallow intervals of disseminated magmatic sulphides (trace to 1%) were seen in the top 200m of the hole, in a similar zone to that seen in previous holes MTD012, MTD022 and MTD023. Hole MTD026 (EIS2) was located approximately halfway between holes MTD023 (EIS1) and MTD020. Both of these holes showed extensive intersections of disseminated sulphide mineralisation, with hole MTD020 being the rst signi cant occurrence during the Phase 1 drilling program (ASX, Disseminated Sulphides Seen Over 300m in Hole MTD020, 26 July 2022; MTD020 Assays Con rm Extensive Working Mineral System, 7 November 2022). Hole MTD026 was drilled to a total depth of 1,548.3m and intersected ~1,400m of variably serpentinised and talc-carbonate altered high MgO adcumulate to extreme adcumulate dunite ultrama c (60.2-1,469.7m), beneath 60.2m of sand cover (0-60.2m), before encountering a footwall of predominantly basalt and silici ed shales at 1,479.7m depth (1,469.7-1,548.3m). Disseminated magmatic sulphides (trace to 2%) were observed down the majority of the hole, starting from around 117m depth. In a number of places the disseminated sulphides coalesced into interstitial blebs (3 to 5% sulphide) between former olivine crystals and also approached net textured (5 to 10% sulphide). Hole MTD027 was located on the eastern side of the Mulga Tank Complex in an area that has had no previous drilling. The hole was designed to test a coincident gravity and magnetic high, a minor MLEM anomaly, and the presence of nickel sulphide mineralisation in this area. The hole was drilled to a total depth of 1,662.3m, the deepest hole drilled at the project, and intersected ~1,500m of variably serpentinised and talc-carbonate altered high MgO meso to adcumulate dunite ultrama c (84-1,630.9m), beneath 84m of sand cover (0-84m), before encountering a footwall of basalt and silici ed shales at 1,630.9m depth (1,630.9-1,662.3m). Disseminated magmatic sulphides (trace to 2%) were observed at numerous intervals down the hole, starting from around 216m depth. In a number of places the disseminated sulphides coalesced into interstitial blebs (3 to 5% sulphide) between former olivine crystals. Corresponding pXRF readings of Ni, with elevated Cu and S, support the likelihood of being disseminated magmatic nickel sulphide mineralisation. Frequent intersections of high-tenor in-situ nickel sulphide globules and remobilised massive nickel sulphide veinlets were also observed down the length of the hole. A number of good examples of high-grade nickel sulphide material lling fractures in the rock were seen, including shallow examples in the top 200m of the hole. fi fi fi fi fi fl fi fi fl fi fi fi fi 6 Western Mines Group Ltd Review of Operations 30 June 2023 This is a very positive observation, in a new previously undrilled area, and opens up the eastern margin in the search for massive sulphide sources or deposits within the Complex (Perseverance-style basal massive sulphide) and not just limited to the western margin where previously encountered. Overall hole MTD027 showed a number of similarities with the two EIS deep holes MTD023 (~1.7km to the WNW) and MTD026 (~1km to the WSW) with the meso to adcumulate texture of the host dunite perhaps indicating a sightly higher position in the system. Similar intersections of disseminated sulphides to the EIS holes were observed along with frequent examples of remobilised massive sulphide veinlets logged down the hole. The visual observations are clearly hallmarks of a very signi cant working sulphide mineral system that has now been demonstrated in large parts of the Mulga Tank Complex. GEOCHEMICAL ASSAY RESULTS MTD022 assay results show adcumulate-extreme adcumulate dunite down the length of the hole, averaging 46.6% MgO, 0.29% Al2O3 (volatile free) and 0.29% Ni for all samples assayed over 474.2m. A number of intersections show good evidence for disseminated Mt Keith-style nickel mineralisation and a “live” magmatic sulphide mineral system, including the relatively shallow intercept: MTD022 114m at 0.31% Ni, 121ppm Co, 33ppm Cu from 124m inc. 14m at 0.48% Ni, 171ppm Co, 152ppm Cu with 0.66% S from 168m A number of remobilised massive nickel sulphide veinlets were observed towards the base of holes MTD022 and MTD022W1. Assay results con rm Ni-Cu-PGE mineralisation in the veinlets: MTD022 0.5m at 1.42% Ni, 518ppm Cu, 372ppm Co, 0.41g/t Pt+Pd from 553m MTD022W1 0.15m at 2.73% Ni, 812ppm Cu, 595ppm Co, 0.10g/t Pt+Pd from 525.15m Assay results for hole MTD023 (EIS1) show prospective high-temperature adcumulate-extreme adcumulate dunite host rock down the length of the hole, averaging 46.8% MgO, 0.24% Al2O3 (volatile free), over a cumulative 1,157m. Multiple broad intersections of disseminated nickel mineralisation with elevated Ni and S, in combination with highly anomalous Cu and PGE, show strong evidence for an extensive “live” magmatic sulphide mineral system (ASX, MTD023 Assays Con rm Discovery of Signi cant Nickel Sulphide System, 5 April 2023). Signi cant mineralised intersections include: MTD023 78m at 0.28% Ni, 131ppm Co, 70ppm Cu, 32ppb Pt+Pd from 118m inc. 20m at 0.38% Ni, 137ppm Co, 57ppm Cu, 45ppb Pt+Pd from 176m and 306m at 0.26% Ni, 130ppm Co, 47ppm Cu, 24ppb Pt+Pd from 402m and 221.5m at 0.25% Ni, 116ppm Co, 68ppm Cu, 23ppb Pt+Pd from 794.5m inc. 11.5m at 0.37% Ni, 134ppm Co, 75ppm Cu, 43ppb Pt+Pd from 794.5m and 88m at 0.44% Ni, 151ppm Co, 85ppm Cu, 38ppb Pt+Pd from 1,212m Which cumulatively total: 693.5m at 0.28% Ni, 128ppm Co, 61ppm Cu, 27ppb Pt+Pd fi fi fi fi fi 7 Western Mines Group Ltd Review of Operations 30 June 2023 The assay results con rm Ni-Cu-PGE mineralisation in the remobilised massive nickel sulphide veinlets seen in the hole including: MTD023 1.5m at 1.88% Ni, 670ppm Co, 429ppm Cu, 76ppb Pt+Pd from 402m inc. 1m at 2.20% Ni, 779ppm Co, 490ppm Cu, 86ppb Pt+Pd from 402.5m The assay results for MTD023 demonstrate extensive zones of highly anomalous Cu and PGE’s in combination with elevated S, and a S:Ni ratio greater than 0.5. These zones correlate well with the visible sulphides observed in the geological logging and together provide strong evidence for nickel in sulphide. MTD026 assay results show prospective high-temperature adcumulate-extreme adcumulate dunite host rock down the length of the hole, averaging 48.4% MgO, 0.25% Al2O3 (volatile free), over a cumulative 1,374.5m. Near continuous intersections of disseminated nickel mineralisation with elevated Ni and S, in combination with highly anomalous Cu and PGE, are considered strong evidence for an extensive magmatic sulphide mineral system. Signi cant mineralised intersections include: MTD026 130m at 0.31% Ni, 136ppm Co, 122ppm Cu, 24ppb Pt+Pd from 116m inc. 13m at 0.35% Ni, 142ppm Co, 301ppm Cu, 65ppb Pt+Pd from 157m and 158m at 0.27% Ni, 136ppm Co, 70ppm Cu, 19ppb Pt+Pd from 262m and 38m at 0.28% Ni, 136ppm Co, 64ppm Cu, 16ppb Pt+Pd from 448m and 104m at 0.24% Ni, 139ppm Co, 100ppm Cu, 22ppb Pt+Pd from 500m inc. 16m at 0.40% Ni, 175ppm Co, 157ppm Cu, 45ppb Pt+Pd from 528m and 32m at 0.31% Ni, 177ppm Co, 250ppm Cu, 30ppb Pt+Pd from 660m and 258m at 0.26% Ni, 135ppm Co, 95ppm Cu, 24ppb Pt+Pd from 792m and 32m at 0.31% Ni, 149ppm Co, 95ppm Cu, 15ppb Pt+Pd from 1,092m and 53m at 0.34% Ni, 149ppm Co, 136ppm Cu, 40ppb Pt+Pd from 1,154m and 35m at 0.38% Ni, 159ppm Co, 113ppm Cu, 32ppb Pt+Pd from 1,154m Which cumulatively total: 840m at 0.28% Ni, 140ppm Co, 103ppm Cu, 24ppb Pt+Pd In addition to the extensive Mt Keith-style disseminated mineralisation seen in the hole several remobilised massive nickel sulphide veinlets were also observed. Assay results con rm Ni-Cu-PGE mineralisation in the veinlets and the possible nearby presence of massive sulphide accumulations: MTD026 0.5m at 1.21% Ni, 490ppm Co, 1,455ppm Cu, 93ppb Pt+Pd from 116.5m 0.3m at 1.88% Ni, 846ppm Co, 762ppm Cu, 214ppb Pt+Pd from 224.3m fi fi fi 8 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 2: Cross Section through the centre of the Mulga Tank Ultrama c Complex FOUR ACID AND AQUA REGIA DIGEST COMPARISON Samples from selected intervals of mineralisation seen in holes MTD012, MTD020, MTD022, MTD023 (EIS1) and MTD026 (EIS2) were submitted for further analysis by aqua regia digest in addition to the standard four acid digest analysis (ASX, MTD020 Assays Con rm Extensive Working Mineral System, 7 November 2022; Aqua Regia Testwork Con rms Nickel Sulphide Association, 6 April 2023; MTD026 Aqua Regia Testwork Con rms Nickel Sulphide, 31 August 2023). A semi-quantitative assessment or comparison can be conducted on the two techniques to indicate the proportion of nickel mineralisation associated with sulphide (and potentially iron), relative to that of nickel in silicate (which is typically unrecoverable during bene ciation processing). Very positive results indicate nickel is likely predominantly associated with sulphide mineralisation. Broad intervals of shallow mineralisation (within the top 250 vertical metres) were tested by this method in four drill holes over some 2.3km. Assuming this mineralisation is laterally continuous, these results demonstrate the potential for the Complex to host signi cant volumes of nickel in sulphide form within a large near surface, open pit scenario for the Mulga Tank Project. Four Acid From (m) HoleID Interval (m) To (m) Ni (%) Aqua Regia Co (ppm) Cu (ppm) Ni (%) Ni AR/ 4A Co (ppm) Co AR/ 4A Cu (ppm) Cu AR/ 4A MTD012 177 227 50 0.32 124 25 0.31 97.1% 115 92.8% 25 100.0% MTD022 108 192 84 0.32 128 49 0.32 99.9% 123 96.0% 49 100.0% MTD023 118 196 78 0.28 131 70 0.27 97.2% 124 94.3% 70 99.8% MTD026 116 246 130 0.31 136 122 0.30 98.6% 132 97.6% 121 99.6% Table 1: Summary of four acid (4A) versus aqua regia (AR) assay results fi fi fi fi fi fi 9 Western Mines Group Ltd Review of Operations 30 June 2023 MINERALOGICAL INVESTIGATION WORK During the period the Company completed mineralogical thin and polished section work on samples of core from hole MTD022 in order to characterise the rock types and sulphide species observed (ASX, MTD022 Mineralogical Work Con rms Abundant Pentlandite, 8 February 2023). Four samples of core were collected from different depths down the hole and prepared for mineralogical section analysis and identi cation of sulphide species present. Results of this work con rms the presence of abundant high-tenor disseminated pentlandite in the samples, with little-to-no pyrrhotite and pyrite observed. This has very positive implications for the potential of an extensive working mineral system for Type 2 Mt Keith-style disseminated nickel sulphide mineralisation. Hole MTD022 Mineralogical Investigation 120.15m: Abundant pentlandite blebs with the usual magnetite rims and crossbars 279.15m: Moderately abundant pentlandite with microveinlets of heazlewoodite. No magnetite rims. 337.1m: Sparse sulphide blebs which are predominantly heazlewoodite. 446m: Very coarse sulphide blebs in ultrama c. Blebs consist of pentlandite with veinlets of millerite and minor magnetite. Table 2: Polished section descriptions for hole MTD022 (pn=pentlandite, mill=millerite, hz=heazlewoodite, mt=magnetite) Field of view either 1.2mm or 0.6mm fi fi fi fi 10 Western Mines Group Ltd Review of Operations 30 June 2023 SHALLOW MINERALISATION The limited drilling to date at the Mulga Tank Project has encountered similar broad intervals of shallow disseminated mineralisation across holes MTD012-MTD022-MTD023-MTD026 approximately 2.3km apart. This mineralisation, in the top 250 vertical metres, could potentially be amenable to large scale open pit mining, especially considering the top 50-90m of sand cover is essentially “free-dig”, easily removable overburden. For example, the uppermost intersection of mineralisation seen in recent diamond hole MTD026 was between 116m to 246m depth with assay results showing 130m at 0.31% Ni from 116m, including 13m at 0.35% Ni from 157m (ASX, MTD026 Assays - 840m of Nickel Sulphide Mineralisation, 30 August 2023). An initial 18 hole, 5,400m RC drilling program has recently commenced to test the extent of the shallow disseminated nickel sulphide mineralisation observed across the centre of the Mulga Tank Ultrama c Complex (ASX, RC Drilling Program Commences at Mulga Tank, 20 September 2023). The holes are spread over a 2,000m x 1,000m area across the centre of the main body of the Complex, at approximately 500m x 300m spacing, and will attempt to drill to ~300m target depth.The planned RC holes are intended to systematically test the central area, to con rm if the mineralisation is laterally continuous between the holes and whether richer zones of disseminated mineralisation can be found. Figure 3: Cross Section through the western side of the Mulga Tank Ultrama c Complex through holes MTD012 to MTD026 fi fi fi 11 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 4: Mulga Tank planned RC drill holes JASPER HILL The Jasper Hill Project comprises tenements E39/2073, E39/2079 and prospecting licence application P39/6267. The project is located approximately 80km southeast of Laverton and covers part of the poorly exposed Merolia Greenstone Belt, a NNW trending belt, up to 20km wide, that can be traced over 110km in a SSE direction from the Burtville Mining Centre. The project area is lightly explored, due to being partly under shallow cover, but is contiguous to the historic producing mines of Lord Byron (160,000oz at 1.0g/t Au) immediately to the south and Fish (87,000oz at 4.1g/t Au), to the east. Jasper Hill is the Company’s primary gold project containing a mineralised gold trend over 3km strike. Historical shallow, wide spaced, RAB and RC drilling during the 1980’s highlights a number of robust gold results within the tenements including: AJ10 14m at 1.58g/t Au from 14m, including 2m at 8.1g/t Au from 16m, PDH02 13m at 1.44g/t Au from 15m, including 5m at 3.11g/t Au from 15m and PDH03 18m at 1.28g/t Au from 14m, including 4m at 3.35g/t Au from 14m - with little or no follow up work since that time. 12 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 5: WMG ground magnetic survey and signi cant historical drill intersections (E39/2073 and P39/6267) Further eld reconnaissance work involving geological mapping, ground-truthing the results of the high- resolution ground magnetic survey over part of tenement E39/2073 and locating signi cant aboriginal heritage sites was conducted during the period. The Company plans to complete a litho-structural interpretation and drill targeting work, to advance the project ready for an initial RC drilling program. The Company engaged remote sensing specialists Earthscan Pty Ltd to complete satellite based remote sensing work over the project area, using ASTER multispectral imagery. This work was completed during the previous period and was principally focused on mapping alteration signatures of possible gold targets. Numerous new and existing alteration targets were identi ed by the work which will be ground-truthed during the next eld visit. fi fi fi fi fi 13 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 6: Jasper Hill ASTER alteration targets (E39/2073, E39/2079, P39/6267) PINYALLING The Pinyalling Project comprises exploration licence E59/2486 covering 55km2. The project is located approximately 25km NW of Paynes Finds and lies at the south-eastern end of the Yalgoo-Singleton Greenstone Belt, within an area known as the Warriedar Fold Belt that comprises a folded sequence of gabbro and dolerite intercalated with basalt, ultrama cs, sediments and BIF. The Warriedar Fold Belt hosts a number of historic gold workings at the Pinyalling Mining Centre, 3km north of the tenement area, as well as the Baron Rothschild prospect drilled by Thundelarra Exploration during the 1990s. fi 14 Western Mines Group Ltd Review of Operations 30 June 2023 The Company recently engaged remote sensing specialists Earthscan Pty Ltd to complete satellite based remote sensing work over the project area, using ASTER multispectral imagery. This work was completed during the previous period and was principally focused on mapping pegmatite sequences that could potentially host lithium mineralisation. The Company notes the upswing in lithium focused exploration in the area at Golden State Mining’s (ASX:GSM) nearby Paynes Find Lithium Project (ASX:GSM, Lithium Exploration and Drilling Update, 22 December 2022). An initial eld reconnaissance visit is planned to ground-truth these interesting early results. Figure 7: Location of Pinyalling Project fi 15 Western Mines Group Ltd Review of Operations 30 June 2023 Figure 8: Pinyalling ASTER image with mapped granite and pegmatites ROCK OF AGES The Rock of Ages Project comprises prospecting licence P38/4203 and is located approximately 32km southeast of Laverton. The project lies on the Laverton Greenstone Belt, around 4.5km south of the historical Burtville Mining Centre and is surrounded by Focus Minerals (ASX:FML) Laverton Gold Project, with the neighbouring deposits of Burtville (206,000oz at 0.96g/t Au) and Karridale (1.19Moz at 1.33g/t Au) within a 5km radius. The tenement contains the historical Rock of Ages workings, a series of shallow mine workings over approximately 600m strike, associated wit