Black Canyon Confirms High-Grade Manganese DSO Potential and Launches 15,000m Drilling at Wandanya

Metallurgical Tests Validate High-Quality DSO Potential

Black Canyon Limited (ASX:BCA) has reinforced the quality of its Wandanya Project manganese and iron deposits with metallurgical testwork confirming the potential for direct shipping ore (DSO) products. The recent crush, screen, and sizing tests demonstrated that both high-grade manganese oxide and iron composites can be upgraded to premium specifications with very low deleterious content. Notably, manganese oxide composites were consistently upgraded close to or above the critical 44% Mn oxide benchmark, with high-grade samples reaching up to 49.9% Mn.

The beneficiation process, employing a simple density-based Heavy Liquid Separation (HLS) technique, delivered strong manganese recoveries of 91.2% for high-grade feeds and 87% for medium-grade composites. This efficiency is particularly encouraging given the straightforward nature of the processing method, suggesting cost-effective production pathways. The iron composites also showed promising results, with a modest 1.1% upgrade in Fe content after crushing and screening, and over 85% of iron reporting to lump-sized fractions suitable for DSO.

Major Drilling Program Commences to Expand Resource Footprint

Following these metallurgical validations, Black Canyon initiated a substantial 15,000m Reverse Circulation (RC) drilling campaign aimed at resource definition and expansion across the 3km base case target area at Wandanya. This program also targets extensions north and east, with exploration drilling planned to test a 1.8km strike to the south. First assay results are expected within 4 to 6 weeks, and ongoing updates will inform the evolving geological model and resource estimates.

This drilling push builds on the momentum from the successful 2025 campaigns and aims to unlock further shareholder value by expanding the footprint of this greenfield discovery. The program is supported by recent heritage and archaeological surveys, which facilitate drill line clearances and ensure compliance with regulatory requirements.

Robust Financial Position Underpins Project Advancement

Black Canyon ended the March 2026 quarter with a strong cash balance of $10.1 million and no debt, providing solid funding for ongoing exploration and development activities. Expenditure during the quarter was modest, with $94,000 allocated to exploration and evaluation and $310,000 to administration and corporate costs. The company’s capital structure remains tight, with 162.2 million shares on issue and top 20 shareholders controlling 45% of the register.

Balfour Manganese Field Resource Remains a Significant Asset

The broader Balfour Manganese Field (BMF), where Wandanya is located, holds a global mineral resource estimate of 315 million tonnes at 10.5% manganese, comprising measured, indicated, and inferred categories. This substantial resource base underpins Black Canyon’s strategic positioning in Western Australia’s manganese sector. The company also retains a 75% interest in the Carawine Joint Venture, which is maintained through minimum expenditure commitments.

Black Canyon’s recent metallurgical and drilling activities at Wandanya dovetail with its broader resource growth strategy, complementing the substantial resource upgrades and exploration success reported in prior quarters. The current drilling campaign and metallurgical testwork follow the company’s earlier announcements of high-grade manganese and iron intersections and beneficiation results, reinforcing the project’s development potential 15,000m RC drilling underway and over 40% manganese grades.

With the resource definition and expansion drilling now underway, Black Canyon is poised to refine its geological understanding and advance Wandanya towards development. The outcomes of the upcoming assay results and further metallurgical studies will be pivotal in shaping the project’s economic evaluation and potential production pathways.