Black Canyon Secures $265K Grant to Probe Concealed Manganese at Wandanya

Government Grant Targets Hidden Manganese Deposits

Black Canyon Limited (ASX:BCA) has secured up to $264,800 in co-funded grants from the Western Australian Exploration Incentive Scheme (EIS) to support a detailed gravity survey and follow-up deep reverse circulation (RC) drilling at its Wandanya manganese and iron project. This funding aims to uncover potentially concealed high-grade manganese mineralisation beneath the known strataform deposits.

The gravity survey, set to commence in mid-July, will cover a 10km by 4.5km area along the Wandanya mineralised trend. Gravity methods have proven effective in detecting dense hydrothermal manganese deposits elsewhere, such as Woodie Woodie, raising hopes for similar discoveries at Wandanya. Should significant anomalies be identified, the $180,000 drilling grant will be deployed to test these targets within an 18-month window ending November 2027.

Drilling Advances Resource Definition with Assays Imminent

The company has completed an extensive resource definition drilling campaign, totalling 18,500 metres across approximately 640 holes, focused on a 3km base case target with a tight 50x50m drill spacing. Assay results from this program are expected over the next six weeks, which will underpin the maiden Mineral Resource Estimate (MRE) planned for delivery by late Q3 2026.

Expansion drilling to the north and south of the base case target has also been completed, with results to be reported as assays are received. Further drilling targeting 1.8km southern and 2.8km northern extensions is scheduled to resume in early August, continuing to build on the project's scale and grade potential. This drilling density is designed to support Indicated or Measured resource classifications suitable for scoping and feasibility studies.

Metallurgical Progress and Scoping Study Development

Black Canyon has completed upscaled pilot Dense Media Separation (DMS) metallurgical testwork at ALS Metallurgical in Balcatta, processing 80kg samples from two blend feeds. Previous laboratory tests have consistently upgraded manganese grades above the 44% Mn oxide benchmark with recoveries between 73% and 82%. Final DMS results are expected in July and will inform the upcoming scoping study.

The scoping study, targeted for completion in Q4 2026, is advancing with key assumptions and cost estimates being developed in collaboration with Battery Limits, a specialist project advisory firm. The study will evaluate multiple production scenarios, including direct shipping ore (DSO) manganese and iron products and upgraded manganese concentrates, with trucking logistics identified as a key cost driver under review.

Environmental and Heritage Surveys Support Project De-Risking

Black Canyon is progressing pre-development activities to de-risk Wandanya, including baseline environmental surveys covering terrestrial fauna, flora, and significant invertebrates, conducted in line with Environmental Protection Authority guidelines. These surveys will feed into an Environmental Impact Assessment referral planned for late Q1 2027.

Heritage surveys have also been a focus, with four completed in the past six months to facilitate drill access along the resource footprint and for water bore test holes. A fifth survey is planned for August. The company acknowledges the support of the Karlka Nyiyaparli Aboriginal Corporation in these efforts.

Hydrological Study Identifies Water Targets for Drilling

A scoping-level groundwater study has identified prospective aquifer targets to meet the project's water needs. Several targets have been selected for RC drill testing in early Q4 2026, with a 26D license already issued for this program. Water quality and yield analyses will be critical inputs for project planning.

Strategic Positioning Amid Global Manganese Supply Risks

Black Canyon's Managing Director Brendan Cummins highlighted the strategic value of Wandanya, located in a tier-one mining jurisdiction close to key Asian markets. The project attracted strong interest at the recent International Manganese Institute conference, reflecting confidence in its potential to produce high-quality manganese products.

Market sentiment remains neutral with manganese prices forecast around USD$5.00 per dry metric tonne unit (DMTU) for 44% Mn benchmark ore. However, looming supply disruptions from Gabon, the world's second-largest manganese producer, could tighten supply. Gabon's plan to halt raw manganese exports by 2028 to encourage domestic processing may impact global availability, particularly for Indian and Chinese alloy smelters.