Terrain Minerals Reports Maiden 54koz Gold Resource at Lightning Project

Maiden Resource Lays Groundwork for Growth

Terrain Minerals (ASX:TMX) has announced a maiden Mineral Resource Estimate (MRE) for its Lightning Gold Project, part of the Smokebush Gold & Silver Project in Western Australia’s Murchison region. The Inferred resource comprises 677,000 tonnes grading 2.5 g/t gold for 54,000 ounces of contained gold, alongside 7.2 g/t silver for 156,500 ounces, constrained within an optimised pit shell and supplemented by underground mining assumptions.

This inaugural 'starter' resource represents a significant milestone for Terrain, providing a solid platform from which the company aims to accelerate exploration and resource definition. Executive Director Justin Virgin emphasised that a substantial amount of mineralisation remains outside the current resource boundary, highlighting the potential for expansion through ongoing drilling.

Resource Characteristics and Mining Potential

The resource starts from surface and remains open both along strike and at depth, hosted within a structurally controlled shear zone in mafic volcanic and intrusive rocks. The deposit extends over approximately 850 metres strike length and has been defined to depths between 75 and 175 metres below surface. Mineralisation is high-grade, with open pit resources estimated at 157,000 tonnes at 3.5 g/t gold, and underground resources at 520,000 tonnes at 2.2 g/t gold.

Economic assumptions underpinning the resource include a gold price of AUD$6,000 per ounce, 93% recovery for gold, and mining costs of AUD$35 per tonne for open pit and AUD$100 per tonne for underground mining. Silver is treated as a by-product with a price assumption of AUD$20 per ounce. No mineral reserves have been declared yet, and the resource remains classified as Inferred with inherent uncertainties.

Robust Drilling and Geological Framework

The MRE is based on 98 drill holes totalling over 16,000 metres, including reverse circulation and diamond drilling conducted since 2013, with the bulk completed by Terrain Minerals from 2020 onwards. Independent consultants Apex Geoscience prepared and reviewed the resource model using ordinary kriging estimation, supported by detailed geological logging, density measurements, and quality control protocols.

The drilling density and continuity have increased confidence in the geological interpretation, with mineralisation confirmed to be consistent along strike and at depth. The deposit’s high-grade zones are typically narrow but enclosed within broader lower-grade envelopes, suggesting potential for wider mineralised zones.

Next Steps: Drilling and Metallurgical Testing

Terrain plans to commence a new round of infill and extensional drilling in September 2026 to upgrade the current resource classification from Inferred to Indicated and expand the overall resource inventory. The company will also test new priority targets identified across the broader Smokebush Project area.

Metallurgical test work is underway, with initial results expected in the third quarter of 2026. These tests will inform potential recovery rates and processing routes, critical for advancing the project towards economic evaluation and mining studies.

Strategic Location Within a Prolific Gold District

The Lightning Project is situated within a granted mining lease approximately 350 kilometres north of Perth, surrounded by established gold operations including Capricorn Metals’ Mt Gibson project and Vault Minerals’ Rothsay Gold Mine. This strategic positioning within the Murchison Gold Region enhances the prospect of successful project development.

Terrain’s broader portfolio includes other promising assets such as the Wildflower Gold Prospect, Larin’s Lane Gallium Prospect, and rare earth projects at Lort River, underscoring a diversified approach to exploration and resource growth.