Highlights

• Terra Metals Limited has used its September 2026 quarterly report to outline further drilling at the Southwest discovery.

• Southwest is a platinum, palladium, gold (together "3E"), copper and nickel sulfide system within the Jameson Layered Intrusion.

• About 76,000 metres of diamond and reverse-circulation drilling has been completed this year, with more than 40,000 samples.

• Regional exploration was reduced, and Terra says no further regional drilling is planned until the Southwest resource estimate.

Terra Metals Limited (ASX:TM1) — has used its September 2026 quarterly report to outline further drilling at the Southwest discovery within its Dante Project in Western Australia's West Musgrave Province. The company holds the project outright and describes it as its only active asset.

Central development

Southwest is a platinum, palladium, gold (together "3E"), copper and nickel sulfide system within the Jameson Layered Intrusion, discovered in late 2025. Terra reports that the mineralised corridor now extends about 1,350 metres along strike, 700 metres across strike and at least 750 metres down dip, and remains open along strike and at depth. The company says strike length grew by more than a fifth during the quarter.

Terra reported near-surface intersections in newly drilled eastern ground, including 194 metres at 1.01 grams per tonne 3E from 15 metres in hole SWRC106. Its thickest diamond intercept was 336.9 metres at 1.02 grams per tonne 3E in SWRD090. Higher-grade reef zones included 1.29 metres at 18.62 grams per tonne 3E in SWRD054, which the company says is the highest grade at Southwest to date. These are drilling intersections, not a mineral resource estimate.

Drilling and studies

About 76,000 metres of diamond and reverse-circulation drilling has been completed this year, with more than 40,000 samples awaiting assay. Four rigs were operating in October. The report also gives other figures for rig numbers and metres drilled in different sections, so these should be read as approximate.

Regional exploration was reduced, and Terra says no further regional drilling is planned until the Southwest resource estimate and Scoping Study are delivered. Early metallurgical work indicates the platinum group metals occur as coarse tellurides associated with sulfides, which the company says should report to the same concentrate as base-metal sulfides. Testwork has moved to cleaner flotation, smelter engagement has begun, and first results are expected in the December 2026 quarter.

Existing resource

A separate August 2025 resource for the Basal Reefs totals 148 million tonnes, comprising 38 million tonnes Indicated and 110 million tonnes Inferred. Terra reports contained metal of 22 million tonnes of titanium dioxide, 800,000 tonnes of vanadium pentoxide, 270,000 tonnes of copper, 1.6 million ounces of 3PGE and 400,000 ounces of gold. The Southwest system sits outside that resource and has no estimate yet.

Financial position

The Appendix 5B shows net operating cash outflow of A$17.12 million, of which A$16.76 million was exploration and evaluation, including A$7.55 million on drilling and A$3.11 million on sample analysis. Interest received was A$0.70 million. Cash fell from A$75.11 million at 30 June 2026 to A$57.88 million at 30 September 2026, with no financing inflows.

The company calculates about 3.4 quarters of funding on current operating outflows and reports no unused facilities, although it describes itself as well funded. Related-party payments were about A$256,000.

Corporate and tenements

Terra appointed Ben Hammond as Chief Development Officer and Barry Jones as General Manager, Exploration and Operations. It reports heritage approvals across the full Southwest footprint and about A$1.47 million spent with Aboriginal businesses and local providers. Tenements totalled 19 granted and 11 applications at quarter end.

Risks and conditions

Exploration results can change as assays are received and modelled, and no Southwest resource has been declared. Metallurgical outcomes, smelter terms and study conclusions remain unconfirmed. The company is also spending cash at a high rate relative to its balance.

Next milestones

Terra lists first metallurgical results in the December 2026 quarter, a maiden Southwest resource estimate in the March 2027 quarter, a Scoping Study in mid-2027 and a Pre-Feasibility Study later. Drilling continues in the meantime.