Highlights

  • Southwest drilling intersected 194m at 1.01g/t 3E from 15m in SWRC106.
  • SWRC105 returned 200m at 0.75g/t 3E from surface; intercepts are downhole lengths.
  • The interpreted Southwest footprint extends about 1,350m along strike and 700m across strike.
  • September-quarter exploration and evaluation payments totalled AUD 16.761 million.
  • Cash stood at AUD 57.884 million on 30 September 2026; a maiden Southwest resource is targeted for Q1 2027.

Terra Metals Limited (ASX:TM1) explores platinum group metals, copper and nickel at its wholly owned Dante Project in Western Australia’s West Musgrave Province. During the September 2026 quarter, work concentrated on the Southwest discovery within the Jameson Layered Intrusion. The company reported broad mineralised drilling intersections, advanced metallurgical testing and began technical studies intended to inform its proposed development pathway. Southwest remains separate from Dante’s existing Basal Reefs Mineral Resource and does not yet have its own reported Mineral Resource Estimate.

What Did the Latest Southwest Drilling Establish?

Near-surface drilling was a prominent feature of the quarter. Hole SWRC106 intersected 194m at 1.01 grams per tonne (g/t) of 3E from 15m, including 24m at 1.84g/t from 43m. The same hole recorded 0.10% copper and 0.17% nickel across the broader interval. SWRC105 returned 200m at 0.75g/t 3E from surface, including 35m at 1.11g/t from 4m. The 3E measure combines platinum, palladium and gold.

At depth, SWRD051 intersected 448m at 0.87g/t 3E from 102m, including 101m at 1.46g/t from 427m. SWRD090 returned 336.9m at 1.02g/t 3E from 191.1m. These figures represent downhole lengths, not confirmed Mining widths. Terra Metals (ASX:TM1) interprets the broader mineralised package as shallow dipping, with a preliminary true thickness of approximately 400m in places; further modelling is needed to establish its geometry.

How Far Has the Discovery Extended?

Terra Metals (ASX:TM1) reported an interpreted Southwest footprint of approximately 1,350m along strike, 700m across strike and at least 750m down dip. The strike extent increased by more than 20% during the quarter, while mineralisation remained open along strike and at depth. Higher-grade reefs will undergo resource modelling.

Dante’s existing 148-million-tonne Basal Reefs resource comprises 38 million tonnes Indicated and 110 million tonnes Inferred. It is separate from Southwest, which has no reported resource.

Metallurgy, Studies and Cash Position

Rougher flotation trials were completed during the quarter and cleaner flotation testing commenced. The program is evaluating both a single bulk sulfide concentrate and separate copper and nickel concentrates, with recovery and metal distribution still under assessment. Terra Metals (ASX:TM1) expected initial metallurgical results in the fourth quarter of calendar 2026. Water-monitoring bores and geotechnical drilling also commenced to support later technical studies.

At 30 September 2026, cash and cash equivalents were AUD 57.884 million, compared with AUD 75.112 million at 30 June. Exploration and evaluation payments during the quarter were AUD 16.761 million, while net operating cash outflow was AUD 17.120 million. Terra Metals (ASX:TM1) reported no customer receipts and no production payments for the period. The company said it was concentrating drilling expenditure on the proposed resource footprint while continuing measured extension work.

What Comes Next for Southwest?

The company targeted a maiden Southwest Mineral Resource Estimate for the first quarter of calendar 2027, followed by a Scoping Study around mid-2027 and a subsequent Pre-Feasibility Study. These are targets, subject to assays, geological modelling and technical work. Heritage approvals were reported across the immediate Southwest footprint, supporting continued resource-definition work.

Key Insights

The September Quarterly Report establishes substantial exploration activity and multiple broad PGM-copper-nickel intersections at Southwest. However, exploration results do not establish economic viability, recoverable reserves or a Southwest resource. Terra Metals (ASX:TM1) must still translate drilling, assays and metallurgical testing into a formal resource and development assessments. Cash expenditure and the proposed study timetable remain relevant considerations as work advances.