Terrain Minerals is set to begin a 3,350-meter RC drilling campaign targeting expansion of high-grade gold and silver mineralisation at its Lightning and Monza prospects in Western Australia, supported by a $1.8 million rights issue.
- 17-hole, 3,350m RC drilling program commencing May 12, 2025
- Targets 600m IP anomaly at Lightning and 700m mineralised strike at Monza
- Recent assays show high-grade gold and silver mineralisation
- Mining lease application submitted for Monza Gold Prospect
- Non-renounceable rights issue to raise approximately $1.8 million
Expansion Drilling to Test Promising Gold-Silver Zones
Terrain Minerals Limited (ASX: TMX) has announced the imminent start of a significant reverse circulation (RC) drilling program at its 100%-owned Lightning and Monza Gold Prospects, situated within the Smokebush Project in Western Australia. The campaign, scheduled to begin on May 12, 2025, will comprise approximately 17 holes totaling 3,350 meters, aiming to expand on recent discoveries of shallow, high-grade gold and silver mineralisation.
The Lightning target is defined by a 600-meter-long induced polarisation (IP) anomaly, while Monza boasts a 700-meter mineralised strike, with both prospects lying in close proximity and exhibiting parallel structures. The drilling program is designed to test these anomalies down dip and along strike, as well as explore potential new parallel targets identified through geophysical modelling.
Encouraging Assay Results and Geological Insights
Recent drilling results have been promising, with highlights including 11 meters at 6.03 grams per tonne (g/t) gold and 43.5 g/t silver from 75 meters at Lightning, and 5 meters at 3.77 g/t gold from 180 meters down dip at Monza. These results underpin the company’s confidence in the mineralisation potential of the area.
Geological analysis suggests that the Lightning and Monza mineralised structures may have formed from distinct mineralising events, with correlations indicating associations between gold and elements such as lead, zinc, silver, arsenic, and antimony. The proximity of the project to established VMS-style mines like Golden Grove and Mt Gibson further enhances its exploration appeal.
Advancing Project Development and Capital Raising
Alongside the drilling program, Terrain has submitted a mining lease application for the Monza Gold Prospect, signaling progress towards potential development. Metallurgical test work on the Lightning gold and silver mineralisation is also set to commence in the second quarter of 2025, focusing on gravity concentration and cyanide leach optimisation.
To support these activities, Terrain is conducting a non-renounceable rights issue to raise approximately $1.8 million. Eligible shareholders can subscribe for one new share for every 3.7 shares held at a price of $0.003 per share, with a free attaching 1:1 option exercisable at $0.005 until June 17, 2027. The offer opens following the ex-date on May 14, 2025.
Broader Exploration Portfolio and Strategic Outlook
While Lightning and Monza remain the company’s immediate focus, Terrain continues to advance other projects including the Wildflower Gold Prospect, Larin’s Lane Gallium and Rare Earth Elements (REE) Prospect, Biloela Copper & Gold Project, Lort River Project, and Carlindie Lithium & Gold Project. These assets diversify Terrain’s exposure across multiple commodities and geographies within Australia.
Executive Director Justin Virgin expressed optimism about the upcoming drilling campaign and capital raise, emphasizing the company’s commitment to unlocking value from its portfolio and delivering an initial Mineral Resource estimate for Lightning and Monza by early to mid-2026.
Bottom Line?
Terrain’s drilling and capital raise mark a pivotal step towards defining a new high-grade gold-silver resource in Western Australia, with market eyes on assay results and resource updates in 2026.
Questions in the middle?
- Will the upcoming drilling confirm extensions of high-grade mineralisation at depth and along strike?
- How will metallurgical test results influence the economic viability of the Lightning and Monza prospects?
- What level of shareholder participation will the $1.8 million rights issue attract, and how might dilution impact existing investors?