Terra Metals uncovers its strongest Southwest reef ahead of resource milestone

Terra Metals Limited (ASX:TM1) has added another substantial piece to the Southwest discovery, reporting a 336.9-metre downhole intercept grading 1.02 grams per tonne of 3E in hole SWRD090. The result includes several higher-grade zones, including 2.4 metres at 4.37g/t 3E, and forms part of what the company describes as its largest continuous high-grade reef to date.

The latest assays from four holes show broad precious-metal mineralisation accompanied by copper, nickel and cobalt credits. SWRD050 returned 101.5 metres at 1.17g/t 3E followed by 181 metres at 0.85g/t, while SWRD071 produced 308.4 metres at 0.92g/t. The intervals are reported downhole, not as true widths, so their eventual geological and economic significance will depend on the geometry of the reefs and further drilling.

Southwest Strike Reaches 1.35 Kilometres

Terra said the interpreted Southwest strike has now reached 1.35 kilometres and remains open in all directions. The results support its interpretation of multiple stacked reefs extending from near surface, a configuration that the company says could provide future flexibility to selectively process higher-grade mineralisation if the project advances to mining.

That geological picture has been building through a run of broad, repeatable intersections, including the previously reported recurring high-grade reef layers. The new release also identifies potential beyond the current target area: first-pass drilling at Double Snag, about 1.2 kilometres along strike from Southwest, intersected sulfide mineralisation, as did drilling at the Area 1 and Area 2 prospects.

Heritage Clearance Opens Resource Drilling

Heritage and access clearances now cover the immediate Southwest footprint, including the existing drilled strike and areas targeted for extensions. That allows grid-spaced resource-definition drilling across the currently interpreted 1.35-kilometre zone as Terra works towards its maiden Southwest Mineral Resource Estimate, scheduled for Q1 calendar 2027 after the enlarged drilling program.

The scale of the remaining laboratory workload is material: more than 40,000 assays are still pending, excluding samples from ongoing drilling. Visual sulfide estimates from Double Snag and other prospects are not assay results, and the company has cautioned that they cannot substitute for laboratory analyses. Any resource-growth narrative therefore remains dependent on confirmation of grade, continuity and geometry.

Metallurgy Moves From Rougher to Cleaner Trials

Metallurgical work is advancing alongside the drilling. Initial rougher flotation trials are nearing completion, while cleaner flotation trials began in late September. The program is testing a range of possible products, from a single bulk sulfide concentrate to separate copper, nickel and pyrrhotite concentrates, with the aim of assessing metal recoveries and where the precious and base metals report within each option.

The Q1 2027 MRE will be the first formal estimate of Southwest’s mineralised tonnage and grade, but it will not by itself establish a mine or processing outcome. The next sequence of evidence is more demanding: pending assays must convert visual indications into measured results, resource drilling must define the stacked reefs, and metallurgical work must show whether the multi-commodity mineralisation can be recovered in a commercially useful product mix.