Resource Upgrade and Tenement Expansion Heighten Development Risks and Expectations

Robust Drilling Results at Wandanya

Black Canyon Limited (ASX, BCA) has delivered a compelling December quarter update, highlighting the success of its Phase 3 reverse circulation drilling program at the Wandanya manganese and iron project in Western Australia. The 148-hole campaign confirmed consistent, thick, and shallow high-grade mineralisation, with manganese assays reaching up to 50.4% Mn over 4 metres from surface and iron grades exceeding 60% Fe in multiple intervals. These results reinforce Wandanya’s reputation as a high-quality, near-surface manganese system with significant scale potential.

Notably, the northern drill sections yielded some of the highest grades and thickest intervals encountered to date, with multiple holes averaging above 35% manganese from surface. This predictability and continuity of mineralisation bode well for the project's development prospects.

Expanding the Mineralised Footprint

Beyond the core Wandanya discovery, surface rock chip sampling from the newly acquired Wandanya South tenement has returned exceptional manganese and iron grades, confirming a potential 1.8-kilometre southern extension to the mineralised system. High-grade manganese samples exceeding 59% Mn and iron samples above 66% Fe were recorded, indicating promising exploration upside.

Black Canyon’s acquisition of Ndalamo Platinum Pty Ltd added six tenements to its portfolio, significantly expanding its footprint across the Balfour Manganese Field by 229 square kilometres. This strategic move positions the company to explore and potentially develop one of Western Australia’s largest manganese resources.

Resource Upgrade and Metallurgical Progress

The company also announced a major upgrade to the KR2 Mineral Resource Estimate, with approximately 90% of the resource now classified as Indicated, up from previously being entirely Inferred. Combined with the KR1 deposit, the total resource stands at 104 million tonnes at 10.3% manganese, underscoring the scale and quality of Black Canyon’s assets.

Complementing the drilling success, a diamond drill core program has been completed, delivering around 2,000 kilograms of core material for detailed metallurgical testwork. These tests aim to refine processing strategies for both manganese and iron mineralisation, with results expected to inform future development plans.

Strong Financial Position and Forward Plans

Black Canyon reported a healthy cash balance of $10.46 million as of 31 December 2025, with no debt, providing a solid financial foundation for ongoing exploration and development activities. The company plans to commence infill and extension drilling at Wandanya following the wet season, alongside further heritage surveys to enable expanded drilling programs on newly acquired tenements.

Additional planned activities include detailed topographic surveys, further metallurgical testing, permitting and approval strategy development, and environmental baseline studies. These steps are critical to advancing the project towards feasibility and eventual production.

Managing Director Brendan Cummins emphasised the company’s confidence in the deposit’s potential and the strategic importance of the recent tenement acquisitions, signalling a clear path forward to unlock further value in the Balfour Manganese Field.