Can Black Canyon’s Wandanya Project Deliver High-Grade Manganese DSO at Scale?

Metallurgical Breakthrough at Wandanya

Black Canyon Limited has delivered a significant update on its Wandanya Project in Western Australia's Oakover Basin, revealing metallurgical testwork results that underscore the potential for producing high-quality direct shipping ore (DSO) manganese and iron products. The initial crush and screen/sizing testwork on diamond drill core composites demonstrated that both high-grade manganese oxide and iron composites possess low levels of deleterious elements, a critical factor for market acceptance and processing simplicity.

The testwork showed that manganese grades preferentially report to coarser size fractions, particularly those above 10mm, which bodes well for producing lump-sized DSO products. This upgrading trend was consistent across low, medium, and high-grade composites, suggesting that even lower-grade material could be beneficiated effectively using density-based separation techniques.

Advancing Beneficiation Techniques

Following the encouraging initial results, Black Canyon has commenced Stage 2 metallurgical testwork involving Heavy Liquid Separation (HLS) on lower and medium-grade manganese composites. This is set to be followed by larger scale Dense Media Separation (DMS) tests, a method routinely applied in similar manganese operations such as Woodie Woodie. These beneficiation steps aim to upgrade lower-grade material, potentially enhancing the project's overall economics by expanding the resource base suitable for sale.

Iron composites also showed promising characteristics, with a high proportion of iron reporting to lump-sized fractions and minimal impurities like aluminium, silica, and phosphorus. Early indications suggest the iron mineralisation is massive and competent, which could translate into a high-quality DSO product with straightforward processing requirements.

Preparing for a Major Drilling Campaign

To build on these metallurgical successes, Black Canyon is mobilising its field team to commence pre-drill site works ahead of a substantial 15,000-metre reverse circulation drilling program planned for early April. This campaign will focus on both infill drilling to increase confidence in existing resources and expansion drilling to extend the known mineralisation beyond the current 3-kilometre strike length. Complementary environmental and heritage surveys are also scheduled to support ongoing exploration activities.

Financially, the company is well-positioned to fund these initiatives, reporting a robust cash balance of $10.5 million at the end of December 2025. This strong liquidity underpins Black Canyon’s capacity to advance the Wandanya Project through critical development phases with high-impact news flow anticipated over the coming months.

Strategic Implications and Outlook

Black Canyon’s Managing Director Brendan Cummins emphasised the simplicity and scalability of the Wandanya mineralisation, highlighting its shallow, continuous nature and the potential for low strip ratios and mining costs. The combination of high-grade DSO products and effective beneficiation pathways for lower-grade material could position Wandanya as a competitive supplier in the manganese market, which remains strategically important for steel alloy production and lithium-ion battery cathodes.

As the company progresses through metallurgical optimisation and drilling, the market will be watching closely to see how these developments translate into resource upgrades and project economics. The next six months promise to be pivotal for Black Canyon as it seeks to convert exploration success into tangible value.