Terra Metals has reported broad PGM-copper-nickel intersections beginning at or near surface at its Southwest discovery in Western Australia. The results strengthen the geological continuity case ahead of a maiden Mineral Resource Estimate targeted for Q1 2027, although true widths, recoveries and final resource scale remain unconfirmed.
- 194m at 1.01g/t 3E and 0.17% nickel from 15m
- 200m at 0.75g/t PGE3 from surface
- 181m at 1.12g/t PGE3 at depth
- More than 40,000m of assays remain pending
- Maiden MRE targeted for Q1 2027
Surface Intersections Strengthen Southwest Mining Case
Terra Metals Limited (ASX:TM1) has produced its clearest evidence yet that the Southwest PGM-copper-nickel system reaches the surface, with reverse-circulation drilling returning 194 metres at 1.01g/t 3E and 0.17% nickel from 15 metres. The interval in SWRC106 included 24 metres at 1.84g/t PGE3, while a separate nine-metre zone ran at 3.53g/t PGE3.
A second hole, SWRC105, delivered 200 metres at 0.75g/t PGE3 from surface, including 79 metres at 1.08g/t and a three-metre interval at 3.03g/t. SWRC107 added 129 metres at 0.98g/t PGE3 from 127 metres, with an eight-metre higher-grade zone at 3.39g/t. Terra said the near-surface mineralisation is relatively platinum-enriched, with platinum-to-palladium ratios close to 1:1 in the reported examples, unlike the palladium-dominant mineralisation typically seen at depth.
The new assays extend near-surface mineralisation about 370 metres east of the SWDD011 diamond hole and support continuity across a system that remains open along strike. They add to the September Southwest assays, which had extended the interpreted mineralised strike to 1.35 kilometres and left more than 40,000 assays pending.
Deep Reefs Show Continuity and Higher Grades
Diamond drilling has continued to find broad, layered mineralisation at depth. SWRD078 returned 181.02 metres at 1.12g/t PGE3 from 144.13 metres, including 56.87 metres at 1.69g/t. Wedge holes from SWDD011 produced 105.43 metres at 1.03g/t and 126 metres at 0.98g/t, with the latter containing 17.6 metres at 2.51g/t and a 5.6-metre section at 4.29g/t PGE3.
The company says the higher-grade zones generally coincide with elevated copper and nickel, and that several holes intersected multiple mineralised zones downhole. That pattern is consistent with a stacked, layered geometry typical of a layered mafic intrusion, according to the announcement, while the repeated higher-grade reefs echo the recurring high-grade reefs reported in earlier Southwest drilling.
Resource and Metallurgy Become the Next Tests
Terra has received assays for 35 holes, 16 of which intersected broad PGM-copper-nickel sulfide mineralisation. Five rigs remain active, with more than 40,000 metres of additional drilling awaiting assays; results are also pending for part of SWRC107 and for SWRD095 below 54 metres. The backlog means the current release is a substantial data point, but not yet a complete picture of the deposit.
Resource-definition drilling and geological modelling are continuing towards a maiden Southwest Mineral Resource Estimate targeted for Q1 2027. In parallel, cleaner flotation trials are assessing concentrate quality, recoveries and potential product configurations, ranging from a bulk sulfide concentrate to separate copper, nickel and pyrrhotite products. A scoping study is planned after the MRE, with the company saying the distribution of higher-grade material will help shape potential mining and processing scenarios.
Terra’s suggestion that the results may support low-strip open-cut mining and selective processing remains a project concept rather than a demonstrated development outcome. All reported intervals are downhole lengths, true widths are not yet known, and the announcement says the figures remain subject to final Competent Person verification. Metallurgical recoveries also remain to be established; PtEq was used only to identify significant intercepts and assumes 100% recovery for its screening calculation.
Bottom Line?
The geological case is strengthening from surface to depth, but the investment story now depends on how the pending assays, recoveries and Q1 2027 resource estimate translate into mineable tonnes and payable metal.
Questions in the middle?
- Will the outstanding assays extend the mineralised footprint or materially change its grade distribution?
- What recoveries and concentrate specifications will the cleaner flotation work establish?
- How much of the broad downhole mineralisation will convert into economic, true-width resource domains?