Terra Metals Confirms Major PGM Sulfide Discovery at Southwest Prospect

Breakthrough PGM Sulfide Discovery at Southwest

Terra Metals (ASX:TM1) has confirmed a major platinum group metal (PGM) sulfide discovery at its Southwest Prospect, part of the broader Dante Project in Western Australia’s West Musgrave region. Assay results from recent drilling reveal a mineralised footprint spanning 850 metres in strike length and up to 650 metres laterally, with downhole thicknesses reaching 172 metres, although true thicknesses remain to be established. Notable intercepts include 35 metres at 2.94 g/t PGE7 and a staggering 172.4 metres at 1.11 g/t PGE3 with associated copper and nickel mineralisation. This discovery underpins management’s belief in a large-scale magmatic sulfide system with considerable growth potential.

The Southwest Prospect’s SW5 and SW6 zones are shaping up as contiguous parts of this mineralised system. Drilling at SW6 has intersected thick, continuous sulfide zones exceeding 200 metres in apparent downhole thickness, with mineralisation remaining open at depth. These findings reinforce the prospect’s status as a cornerstone growth opportunity within the Dante Project, situated near BHP’s Nebo-Babel deposit. Geological interpretations suggest mineralisation is controlled by primary magmatic processes within a layered mafic intrusive system, with local structural complexities possibly linked to magma flow pathways. The ongoing drilling program is expected to refine these models further.

Dante Reefs Resource Upgrade in Progress

Alongside the Southwest discoveries, Terra Metals continues to advance its Dante Reefs resource, which currently hosts 1.6 million ounces of PGE3, 270,000 tonnes of copper, 22 million tonnes of titanium dioxide, and 800,000 tonnes of vanadium pentoxide. Recent infill drilling has intersected thick, continuous Bushveld-style stratiform reefs, increasing confidence in resource continuity and potential expansion. The company anticipates releasing an upgraded mineral resource estimate (MRE) in the first half of 2026, which could significantly enhance the project’s valuation and development prospects.

Aggressive Drilling and Strong Financial Backing

Terra Metals has mobilised a substantial 2026 drilling program focused on expanding and defining resources at the Southwest Prospect. Currently, four drill rigs (two diamond and two reverse circulation) are operational, with a fifth diamond rig scheduled to commence shortly. Approximately 3,800 metres of reverse circulation and 2,600 metres of diamond drilling have been completed to date, with assay results pending. This aggressive approach aims to rapidly delineate the scale and grade of the sulfide system.

Financially, Terra Metals is well positioned, ending the quarter with about $67 million in cash following the first tranche of an institutional placement that raised $85 million at $0.37 per share. The second tranche, expected in May after shareholder approval, will add approximately $21 million to the coffers. This strong balance sheet provides ample runway for ongoing exploration, resource drilling, and economic studies. Major shareholders including Golden Energy and Resources, Tribeca Investment Partners, and Washington H. Soul Pattinson have demonstrated robust support for the company’s strategy, alongside insider participation from CEO Thomas Line and Chief Geologist Solomon Buckman.

Exploration Expenditure and Operational Details

During the quarter, Terra Metals invested nearly A$3.9 million in exploration activities, covering drilling, sample analysis, geological consulting, and field operations. There were no mining or production expenses reported, consistent with the company’s exploration-stage status. Related party payments, primarily director fees and superannuation, amounted to approximately A$90,000.

These developments build on recent assay confirmations of a 172-metre continuous PGM-Cu-Ni zone at Southwest, which helped link mineralisation across the SW5 and SW6 targets, highlighting the system’s scale and continuity. The company’s latest drilling at SW6, which visually identified multiple massive sulfide zones, further validates the prospectivity of the Southwest magmatic system and the effectiveness of its geophysical targeting approach.