Black Canyon Confirms High-Grade Manganese and Iron at Wandanya with Government Backing

Drilling Extends High-Grade Mineralisation at Wandanya

Black Canyon Limited (ASX:BCA) has delivered a strong June quarter update, confirming multiple shallow, high-grade manganese and iron intersections at its Wandanya Project in Western Australia. The company completed 17,200 metres of reverse circulation (RC) drilling across 640 holes, delineating a 3-kilometre base case mineralised footprint with resource definition drilling on a 50x50 metre grid. Notably, mineralisation extends 300 metres north beyond previous limits, with further exploration planned for the 1.4-kilometre southern and 2.8-kilometre northern extensions.

Significant manganese intercepts include 6 metres at 31% Mn from 6 metres depth, with a standout 2 metres at 45.5% Mn (WDRC338), and 7 metres at 34.8% Mn from surface with 4 metres at 44.3% Mn (WDRC291). Iron results are equally compelling, with intercepts such as 10 metres at 59.8% Fe from surface including 5 metres at 60.9% Fe (WDRC285) and 7 metres at 57.1% Fe with 3 metres at 62.6% Fe (WDRC303). These grades suggest strong potential for Direct Ship Ore (DSO) products for both commodities.

Beneficiation Trials Highlight Premium Manganese Products

Beneficiation testwork has reinforced the project’s commercial prospects. Stage 2 heavy liquid separation (HLS) trials produced manganese oxide concentrates ranging from approximately 40% to 50% Mn with recoveries between 87% and 91% from high and medium-grade feeds. Blended composite samples from Stage 3 HLS consistently yielded manganese grades over 40% with low deleterious elements and recoveries between 73% and 82%. These results demonstrate a clear, low-complexity pathway to producing premium manganese products close to or exceeding the 44% Mn benchmark.

Further pilot scale Dense Media Separation (DMS) work has been applied to blended composites, underpinning the beneficiation process. The company’s Managing Director Brendan Cummins emphasised the simplicity and cost-effectiveness of density-based upgrading methods, which could accelerate commercialisation.

Government Grant Supports Continued Exploration and Development

Adding momentum, Black Canyon secured up to $264,800 in co-funded grants under the Western Australian Government’s Exploration Incentive Scheme (EIS). The funding is earmarked for detailed gravity geophysics surveys and follow-up deep RC drilling to identify potentially concealed manganese mineralisation beneath the known strataform deposits. The gravity survey commenced mid-July, targeting extensions beneath the Wandanya footprint.

Environmental baseline surveys for flora, fauna, and heritage have been completed this year, with further surveys planned to satisfy regulatory requirements ahead of the Environmental Impact Assessment (EIA) referral submission scheduled for early 2027.

Financial Position and Next Steps

Black Canyon closed the quarter with a robust cash balance of $7.8 million and no debt, providing a solid runway to advance the Wandanya Project. Exploration and evaluation expenditure for the quarter was $1.943 million, with administrative and corporate costs at $431,000.

The maiden Mineral Resource Estimate (MRE) is on track for September 2026, supported by comprehensive data collection including LIDAR, DGPS collar pickups, and downhole density surveys. A Scoping Study examining the dual commodity potential of DSO iron, DSO manganese, and beneficiated manganese products is scheduled for completion in Q4 2026.

Meanwhile, the Carawine Joint Venture (75% owned by Black Canyon) remains active under a minimum expenditure agreement, though no significant activities were reported this quarter.

Black Canyon’s continued drilling momentum and beneficiation success, combined with government backing and a strong balance sheet, position the company well as it approaches critical project milestones in the coming months. The market will be keen to see how the maiden resource and scoping study define the economics and scalability of this emerging manganese and iron development.