Western Mines Group (ASX:WMG) has taken a step in diversifying the economic potential of its flagship Mulga Tank Ni-Cu-Co-PGE Project by signing a memorandum of understanding with Magnium Australia.
The strategic collaboration focuses on the potential supply of magnesite, a mineral found within the project's "magnesite cap."
Historically treated as overburden or waste in the company’s mineral resource estimates, this oxidised zone has shown XRD results containing up to 48% magnesite.
By converting this material into a viable feedstock, WMG aims to enhance the overall project economics of the Minigwal Greenstone Belt site in Western Australia’s Eastern Goldfields.
The partnership aligns WMG with Magnium’s ambitious goal to become a leading producer of low-carbon magnesium metal.
Magnium is currently working to commercialise its proprietary Magsonic carbothermic reduction process, which utilises supersonic quenching to extract magnesium.
The company plans to construct a pilot plant in Collie, Western Australia, to demonstrate this technology.
Under the terms of the MoU, WMG will work to define the physical extent of the magnesite resource and provide samples for Magnium’s intensive test work.
If successful, both parties intend to transition into a formal supply agreement.
At the time of reporting, Western Mines Group's share price was $0.18.