Black Canyon Advances High-Grade Manganese and Iron Development in WA

Wandanya Emerges as a High-Grade Manganese and Iron Contender

Black Canyon Ltd (ASX:BCA) is advancing its Wandanya Project in Western Australia’s Pilbara region, where drilling has confirmed high-grade manganese and iron mineralisation over a 3km strike that remains open in multiple directions. Recent results include standout intersections such as 8m at 42.2% Mn from surface and 12m at 59.3% Fe, highlighting the project's scale and quality. The mineralisation's shallow, flat-dipping nature supports low-cost open pit mining, with simple beneficiation methods already delivering manganese concentrates exceeding 44% Mn oxide benchmarks.

This promising metallurgical profile is backed by sighter testwork using Heavy Liquid Separation, which upgraded manganese grades from raw feeds of 24.4% to 45% Mn up to 49.9% Mn in concentrate, with recoveries above 87%. Iron ore samples similarly show premium lump characteristics with Fe grades around 60%, enhancing the project's direct shipping ore (DSO) potential. These beneficiation achievements are crucial as Black Canyon prepares for a maiden Mineral Resource Estimate (MRE) targeted for early Q4 2026 and a scoping study later that quarter.

Balfour Manganese Field Underpins Long-Life Project Economics

The Wandanya Project forms part of the broader Balfour Manganese Field (BMF), which boasts the largest contained manganese resource in Western Australia with a global Mineral Resource Estimate of 315 million tonnes at 10.5% manganese. This resource is predominantly classified as measured and indicated, providing a solid foundation for development. Black Canyon’s scoping studies on deposits KR1, KR2, and Flanagan Bore within BMF outline a 16- to 20-year mine life with low capital expenditure (A$84 million for KR1/KR2) and payback periods under two years, delivering attractive internal rates of return above 65% before tax.

Operating costs are competitive, with all-in sustaining costs (AISC) around A$42 per tonne of manganese concentrate, or US$3.38 per dry metric tonne unit (DMTU), positioning the project well within the global cost curve. The company’s strategy includes simple free-dig mining and conventional processing involving crushing, washing, screening, and dense media separation, complemented by efficient transport logistics to Port Hedland. Black Canyon also explores downstream value-add opportunities, such as producing battery-grade high-purity manganese sulphate monohydrate (HPMSM), with recent testwork achieving over 99% manganese sulphate purity from KR1 feedstock.

Robust Drilling Campaign and Strong Financial Position

Black Canyon has embarked on a substantial 15,000m reverse circulation drilling program at Wandanya, aiming to define and expand its manganese and iron resources along a potential 9km strike. This campaign complements ongoing metallurgical testwork and environmental baseline studies, moving the project steadily towards pre-feasibility and development readiness. The company’s cash position of approximately A$10.1 million as of March 2026 supports these activities, while a tight capital structure and backing from resource-focused institutional investors such as Nero, Lowell, Perennial, and Cranport provide further financial stability.

These developments build on Black Canyon’s track record of discovery and value creation since its May 2021 IPO, during which it has delineated six manganese discoveries across the BMF. The company’s management team, led by Managing Director Brendan Cummins and Non-Executive Chairman Graham Ascough, brings relevant experience to advance the projects efficiently. The combination of exploration success, robust scoping study economics, and strategic funding underpins Black Canyon’s positioning as an emerging manganese and iron developer in a market where manganese demand is rising due to its critical role in steelmaking and battery technologies.

Black Canyon’s recent beneficiation results at Wandanya have consistently upgraded manganese feeds to 40-45% Mn grades with strong recoveries, while iron ore tests confirm premium lump product quality, reinforcing the project’s development potential. The ongoing drilling and planned larger scale Dense Media Separation testwork will be critical to refining the project’s economic parameters and supporting upcoming resource and scoping study milestones in late 2026.