Black Canyon’s Wandanya Finds Could Reshape Manganese and Iron Prospects Amid Market Watch
Black Canyon Limited has confirmed a significant new manganese discovery at its Wandanya Project, alongside high-grade iron mineralisation, supported by a successful $2.5 million capital raise to accelerate exploration.
- New hydrothermal manganese discovery at Wandanya’s W2 Prospect with assays up to 42% Mn
- High-grade iron mineralisation identified over a 5km strike with grades suitable for Direct Shipping Ore
- 3km strike of outcropping manganese mineralisation confirmed with further drilling planned
- Successful $2.5 million placement led by Nero Resource Fund to fund exploration and metallurgical testwork
- KR2 deposit infill drilling underway to upgrade resource classification and improve project economics
A New Chapter in Manganese Exploration
Black Canyon Limited (ASX: BCA) has delivered a compelling update from its Wandanya Project in Western Australia’s Pilbara region, unveiling a new high-grade manganese discovery at the W2 Prospect. The reverse circulation (RC) drilling program, completed during the September quarter with assay results received in December, confirmed hydrothermal manganese mineralisation with grades reaching as high as 42% Mn over significant widths.
This discovery represents a fresh exploration model for the company, complementing its existing large mineral resources across the Balfour Manganese Field. The W2 Prospect’s mineralisation is interpreted as fault-related hydrothermal stratabound manganese enrichment, a style that offers both high grades and predictable layering, potentially extending over hundreds of metres. The 3km strike of outcropping manganese mineralisation identified at Wandanya, with only 240m drill tested so far, signals substantial upside for resource expansion.
Iron Potential Adds Strategic Depth
In addition to manganese, Black Canyon has identified high-grade iron mineralisation along a 5km ridge at Wandanya. Rock chip sampling returned iron grades up to 64.3% Fe, well within the range for Direct Shipping Ore (DSO), and with low deleterious elements such as phosphorus and silica. This iron discovery, particularly concentrated in the southern 2km of the ridge, opens a new avenue for the company’s exploration portfolio, potentially broadening its product offering and market appeal.
Advancing Metallurgy and Resource Confidence
Black Canyon has initiated metallurgical testwork on composite samples from the W2 Prospect to assess beneficiation potential and suitability for producing high purity manganese sulphate monohydrate (HPMSM), a critical battery cathode material. Early results are expected in the March quarter, which will be pivotal in defining the economic viability of the new discovery.
Simultaneously, the company has completed an infill RC drill program at the KR2 deposit, a higher-grade resource within the Balfour Manganese Field. This drilling aims to upgrade the resource classification from Inferred to Indicated or Measured, which could accelerate mine scheduling and enhance project economics by bringing forward shallow, high-grade tonnes.
Capital Raising Fuels Exploration Momentum
Supporting these exploration advances, Black Canyon successfully raised $2.5 million through an oversubscribed placement priced at $0.06 per share, anchored by the Nero Resource Fund. The funds are earmarked for ongoing drilling, metallurgical testwork, development studies, and broader exploration across the manganese and iron tenements. With a cash position of $718,000 at quarter-end and the first tranche of placement funds received, the company is well-positioned to maintain its aggressive exploration schedule.
Looking ahead, Black Canyon plans further RC drilling to expand the manganese footprint at Wandanya, heritage surveys to facilitate upcoming drill programs, and continued engagement with strategic partners for potential offtake and project development collaborations.
Strategic Implications
The Wandanya discoveries reinforce Black Canyon’s standing as a leading manganese developer in Western Australia, with a diversified portfolio that now includes promising iron assets. The combination of high-grade manganese suitable for both steel alloying and battery markets, alongside high-grade iron, could enhance the company’s strategic flexibility and appeal to a broader range of investors and industry partners.
However, the full commercial potential hinges on forthcoming metallurgical results and resource upgrades, which will clarify the path to development and production. The company’s ability to efficiently convert exploration success into economic outcomes will be critical in the competitive landscape of battery and steel minerals.
Bottom Line?
Black Canyon’s Wandanya discoveries mark a promising step forward, but upcoming metallurgical and drilling results will be key to unlocking their full value.
Questions in the middle?
- How will metallurgical testwork outcomes influence the economic viability of the W2 manganese discovery?
- What timeline and scale can investors expect for the resource upgrade at the KR2 deposit?
- Could the high-grade iron mineralisation at Wandanya lead to a standalone iron project or complement manganese operations?