Fortuna’s Mkanda resource may be only the shallow beginning

Deeper drilling tests the limits of Mkanda’s large inferred resource

Fortuna Metals Limited (ASX:FUN) says its Mkanda project in Malawi could extend well beyond the shallow envelope used to define its maiden resource, after deeper aircore drilling returned broad rutile intersections at the Mlongo prospect. The strongest reported result was 7 metres at 2.27% rutile from 26 metres, including a peak interval of 3.43% rutile at 30 to 32 metres. The hole remained in mineralisation at its end.

“Mlongo cross section B-B’ showing high grade rutile mineralisation below the current Inferred MRE.”

“Modelled rutile grade oblique with NW view at the Mkanda Project in Malawi, Africa.”

Caption and image © Fortuna Metals Ltd. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 28 Oct 2026.

The results matter because the existing resource was built mainly from hand auger drilling averaging 8.4 metres deep. At a 0.7% rutile cut-off, that estimate stands at 298 million tonnes grading 0.87% rutile and 1.19% total graphitic carbon, containing 2.59 million tonnes of rutile and 3.55 million tonnes of graphitic carbon. Fortuna describes it as one of the six largest contained rutile deposits among the peer projects it selected, although the comparison includes projects with higher-confidence Indicated and Measured resources.

Aircore results could expand the resource footprint

The company has completed 7,618 metres of aircore drilling across high-grade areas, with assays expected progressively over the next four to six months. At Mlongo, other reported intersections included 24 metres at 1.5% rutile, 25 metres at 1.17%, 21 metres at 1.07%, 30 metres at 0.62% and 16 metres at 0.72%.

“Mlongo prospect plan view of aircore results (blue) and previously reported hand auger results (green) at Mkanda Project, Malawi.”

“Mlongo cross section A-A’ showing high grade rutile mineralisation below the current Inferred MRE.”

Caption and image © Fortuna Metals Ltd. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 28 Oct 2026.

That work follows the maiden Mkanda resource, which earlier established the project’s top-six global rutile ranking and outlined the same 298Mt, 0.87% resource at the 0.7% cut-off. Fortuna says mineralisation remains open laterally and at depth, but the current estimate is entirely Inferred. There is no Ore Reserve, and the company cautions that further exploration may not convert the resource into a higher-confidence category.

Technical studies move alongside drilling

Fortuna is preparing an updated resource, with CEO Tom Langley saying an Indicated estimate is targeted for the middle of next year. The next work program includes infill, deeper and extension drilling, alongside metallurgical testing for rutile, graphite, rare earths, zircon and monazite. Scoping-level mining and processing studies, environmental and social baseline work, and discussions with potential customers and strategic partners are also planned or underway.

“Locations of the Mkanda and Kampani Projects in Malawi, Africa.”

The project’s early-stage economics remain untested. Fortuna points to near-surface mineralisation in soft, weathered material and potential physical separation as possible advantages, but those claims remain subject to future technical, environmental and social studies. The company also has the Kampini project, where reconnaissance drilling has begun across a tenement containing about 50 kilometres of prospective host geology.

Equity funding leaves room for the next drilling phase

Fortuna spent A$2.03 million on exploration and evaluation during the quarter and recorded A$350,000 of net operating cash outflow. Equity proceeds of A$8.613 million, less A$30,000 in transaction costs, helped lift cash and cash equivalents from A$5.234 million to A$11.432 million at 30 September. On the company’s Appendix 5B calculation, that represented about 4.8 quarters of funding at the quarter’s relevant outgoings.

“25m @ 1.17% rutile (MAC26 019) from 0 – 25m EOH.”

The financial runway provides room to process the pending assays and advance studies, but it does not remove the project’s central uncertainties: resource confidence is still low, no development economics have been published, and the next phase will require Fortuna to show that deeper grades translate into a larger and technically recoverable mineral system. The coming assay stream should begin to test whether Mlongo is an isolated high-grade result or part of a broader resource upgrade.