Highlights

  • Black Canyon Limited reported beneficiation testwork producing manganese oxide products consistently grading above 40% Mn, with recoveries between 73% and 82%.
  • Iron ore drop tower testing confirmed a 74% lump product at approximately 59.7% Fe, indicating strong direct shipping ore potential.
  • The company’s share price has surged approximately 558% over the past year, reflecting strong investor momentum driven by exploration and metallurgical progress.

Black Canyon Ltd (ASX:BCA) has delivered a significant metallurgical update from its Wandanya Project in Western Australia, reporting strong beneficiation results for manganese and encouraging direct shipping ore (DSO) characteristics for iron mineralisation. The announcement reinforces the company’s dual-Commodity exploration narrative at a time when its share price has experienced exceptional momentum.

The stock traded at AUD 0.40 on 14 May, up 1.28% for the day, extending a broader rally that has seen the company’s share price increase approximately 558% over the past year. This strong performance reflects growing investor interest in critical minerals exposure, particularly manganese, which is increasingly important in steel production and battery Supply chains.

The latest update centres on Stage 3 metallurgical testwork from the Wandanya Project, which has demonstrated consistent production of high-grade manganese products and highlighted the potential for scalable processing pathways.

Manganese Beneficiation Results Support Development Pathway

The most significant outcome from Black Canyon’s latest testwork relates to the successful upgrading of manganese ore through heavy liquid separation (HLS) techniques. The Stage 3 blended composite results show that low to high-grade feed material can be consistently upgraded to manganese oxide products grading above 40% Mn.

Two key blended composites were tested:

  • Blend 1 (20% low grade, 60% medium grade, 20% high grade)
  • Blend 2 (25% low grade, 75% medium grade)

Both blends achieved manganese grades of approximately 41–45% Mn at dense media separation thresholds of 2.8 g/cm³ and 3.0 g/cm³. Recoveries ranged between 73% and 82%, with lower density processing delivering higher recovery outcomes.

These results are particularly relevant because they demonstrate the potential for flexible blending strategies across different ore types within the Wandanya deposit. The ability to consistently achieve high-grade manganese concentrates from mixed feedstock is an important step in validating the project’s geometallurgical model.

The testwork also indicates low levels of penalty elements in the final product, an important Factor for Downstream smelting applications and product marketability.

Project Location and Geological Context

The Wandanya Project is located within Western Australia and forms part of Black Canyon’s broader manganese development strategy. The project sits in a region increasingly recognised for sediment-hosted manganese deposits, which have become important sources of supply for global steelmaking and energy transition markets.

The mineralisation is characterised by multiple feed types, including low, medium, and high-grade manganese oxide material. This variability has been central to the company’s metallurgical approach, which focuses on blending strategies to optimise both recovery and product quality.

Black Canyon has been systematically testing these different ore types to better understand recovery behaviour and support future development planning, including a planned scoping study.

Iron Ore Testwork Highlights Direct Shipping Potential

In addition to manganese results, Black Canyon reported encouraging outcomes from iron ore drop tower testing, which is used to simulate material handling and determine lump-to-fines ratios.

The tests showed a 74% lump product (+6 mm) and 26% fines fraction, significantly outperforming typical Pilbara iron ore operations, where lump ratios are generally closer to 30–40%. The lump material returned an average grade of 59.7% Fe, compared with 54.8% Fe in fines.

The feed composite grade for the tested material was 59.1% Fe, indicating strong consistency and minimal degradation through handling simulation. The results also suggest relatively low levels of impurities, which is a key factor in direct shipping ore quality.

From a market perspective, high lump ratios are generally associated with stronger pricing outcomes, as lump ore attracts premiums in steelmaking due to its efficiency in blast furnace operations.

While additional analysis is required, the early results support the potential for a high-quality iron ore product alongside manganese development, reinforcing the project’s multi-commodity profile.

Drilling Program Continues to Expand Resource Definition

Alongside metallurgical testing, Black Canyon continues to advance a 15,000-metre reverse circulation (RC) drilling program at Wandanya. Approximately 40% of the program has been completed, with assay results expected in the coming weeks.

The drilling campaign is focused on a 3-kilometre strike length of mineralisation and is designed to support future resource definition work. The results will play a key role in refining geological models and informing upcoming scoping-level studies.

The company has also completed baseline environmental and heritage surveys, including flora, fauna, and short-range endemic species assessments. These studies are essential preparatory steps for potential future development approvals and project advancement.

Metallurgical Progress Strengthens Development Narrative

The latest Stage 3 results build on earlier testwork phases and demonstrate increasing technical confidence in the Wandanya Project’s processing potential. The transition from laboratory-scale testing toward larger dense media separation (DMS) studies suggests the project is moving into a more advanced evaluation stage.

The planned DMS program will be designed to simulate commercial processing conditions similar to established manganese operations such as those at Woodie Woodie and Groote Eylandt. These comparisons are significant because they provide industry benchmarks for performance and recovery expectations.

By demonstrating both manganese beneficiation and iron ore DSO potential, Black Canyon is positioning Wandanya as a multi-product asset, which may enhance project flexibility in future development scenarios.

Conclusion

Black Canyon Ltd has delivered a technically significant update from its Wandanya Project, highlighting strong manganese beneficiation results and promising iron ore characteristics. The ability to consistently produce high-grade manganese concentrates above 40% Mn, combined with strong recoveries and low impurities, supports the project’s advancing development profile. Meanwhile, iron ore testing has demonstrated unusually high lump-to-fines ratios and strong Fe grades, reinforcing additional potential value streams. With drilling ongoing and further metallurgical studies planned, including larger-scale DMS testing, Wandanya continues to evolve as a multi-commodity development opportunity. Despite substantial share price gains over the past year, the company remains focused on progressing technical studies and resource definition to support future scoping-level assessments.