Black Canyon Adds 229km² to Wandanya Project, Extending High-Grade Manganese Strike
Black Canyon Limited is set to significantly broaden its footprint in the eastern Pilbara with the acquisition of 229 square kilometres of new tenements around its Wandanya manganese project, enhancing its potential for large-scale manganese and iron mineralisation.
- Acquisition of 229km² tenements from Ndalamo Platinum Pty Ltd
- Extension of high-grade manganese horizons by up to 400m at Wandanya South
- Historic drilling supports shallow, shale-hosted manganese deposits amenable to open pit mining
- Consideration includes 2 million shares and 2 million options exercisable at $0.14
- Planned exploration and drilling programs to further evaluate new tenements
Strategic Expansion in the Eastern Pilbara
Black Canyon Limited (ASX – BCA) has announced a significant step forward in its manganese exploration and development strategy with the acquisition of 100% of Ndalamo Platinum Pty Ltd. This deal adds a substantial 229 square kilometres of tenements adjacent to its Wandanya manganese project, located in the highly prospective Balfour Manganese Field (BMF) in Western Australia's eastern Pilbara region.
The newly acquired tenements, including key applications ELA46/1571 and ELA46/1572, are strategically positioned to complement Black Canyon’s existing large-tonnage shale-hosted manganese discoveries. Notably, the acquisition extends the strike length of the high-grade Wandanya manganese and iron mineralisation by an additional 300 to 400 metres to the south, as confirmed by recent field mapping.
Geological and Historical Context
The manganese mineralisation in this region is hosted within shale formations that typically outcrop and dip shallowly, making them amenable to cost-effective open pit mining. Historic drilling data from the adjacent Wandanya W2 prospect revealed impressive intersections, including 4 metres at 26.3% manganese, with a high-grade interval of 2 metres at 37.4% manganese. These grades underscore the potential scale and quality of the mineralisation extending onto the newly acquired tenements.
In addition to manganese, iron-rich formations with similar mineralogy and textures to those found on Black Canyon’s existing ground have been identified on the Wandanya South tenement. This dual mineralisation adds further prospectivity to the acquisition, potentially broadening the scope of future development.
Broader Portfolio and Resource Implications
The acquisition also includes tenements surrounding the historic Nicholas Downs manganese mine and the Black Hills tenement, both hosting multiple manganese targets with encouraging historic assay results. Black Canyon’s existing Balfour Manganese Field portfolio boasts a global mineral resource estimate exceeding 314 million tonnes at an average grade of 10.5% manganese, positioning the company as a significant player in the manganese sector.
Previous scoping studies on the KR1 and KR2 deposits within the BMF have demonstrated robust financial metrics, including a net present value of $340 million and an internal rate of return of 70%, highlighting the economic potential of these deposits. The new tenements acquired from Ndalamo are expected to enhance this resource base further.
Transaction Details and Next Steps
Under the binding Share Sale Agreement, Black Canyon will issue two million fully paid ordinary shares and two million unlisted options exercisable at $0.14 within three years, subject to due diligence and the grant of key tenements by November 30, 2025. The company plans to commence exploration programs, including reverse circulation drilling, to validate and expand the mineralisation across the new tenements over the next six to twelve months.
Managing Director Brendan Cummins emphasized the strategic importance of consolidating ground in the eastern Pilbara ahead of the upcoming drill program at Wandanya, underscoring the company's confidence in the expanded portfolio's potential.
Bottom Line?
As Black Canyon consolidates its position in the eastern Pilbara, upcoming drill results and tenement grants will be pivotal in defining the project's scale and value.
Questions in the middle?
- Will the pending tenement grants be approved on schedule to enable planned exploration?
- How will the upcoming RC drilling results impact the current resource estimates and project valuation?
- What are the potential challenges in integrating the newly acquired tenements into Black Canyon’s existing operations?
