Key Highlights

  • TM1 closed at $0.145, down $0.02 or 12.12%, on 15 October 2026.
  • SWRC106 returned 194 m at 1.01 g/t 3E and 0.17% nickel from 15 m.
  • Assays for 35 holes were received, with about 40,000 m of drilling still awaiting assay.
  • A maiden Mineral Resource is targeted for Q1 CY2027, followed by a scoping study.

Terra Metals Limited (ASX:TM1) released drilling results from its Southwest project on 14 October 2026, and its shares closed at $0.145, down $0.02, or 12.12%, on 15 October 2026.

A fall of two cents is large in percentage terms because of the low price, and the previous close implied by the change is $0.165. Small-cap explorers often move sharply on small price changes, and the closing price does not explain this move. This article does not link it to the drilling update.

Company Overview

Terra Metals is an Australian-listed explorer focused on platinum group metals, copper and nickel at its Southwest project. It is at the resource definition stage, with five rigs drilling, and it is working towards a maiden Mineral Resource Estimate.

RC Drilling Results

Assays were received for 35 holes. Reverse Circulation Drilling about 370 m east of the diamond hole SWDD011 intersected thick PGM-Cu-Ni mineralisation starting at or near surface. SWRC106 returned 194 m at 1.01 g/t 3E and 0.17% nickel from 15 m, including 24 m at 1.84 g/t PGE3, 0.19% copper and 0.27% nickel from 43 m, 5 m at 2.94 g/t PGE3 from 49 m and 9 m at 3.53 g/t PGE3 from 185 m. SWRC105 returned 200 m at 0.75 g/t PGE3 and 0.16% nickel from surface, and SWRC107 returned 129 m at 0.98 g/t PGE3 from 127 m, including 20 m at 1.46 g/t from 172 m.

Diamond Drilling Results

Diamond drilling confirmed consistency and continuity of high-grade reefs at depth in the central resource area. SWRD078 returned 181 m at 1.12 g/t PGE3 from 144.13 m, including 56.87 m at 1.69 g/t. SWDD011W1 returned 105.4 m at 1.03 g/t PGE3 from 200.5 m, including 16.75 m at 2.26 g/t, and SWDD011W2 returned 126 m at 0.98 g/t PGE3 from 200 m, including 17.60 m at 2.51 g/t and 5.60 m at 4.29 g/t.

Next Steps

The company says the results support a large PGM-Cu-Ni deposit with potential for low-strip open cut Mining and selective processing of high-grade reefs. About 40,000 m of drilling results await assay, and the maiden Mineral Resource Estimate is targeted for Q1 CY2027, with a scoping study planned afterwards, supported by metallurgical testwork.

Reading the Intercepts

PGE3 is the sum of platinum, palladium and gold, and 3E refers to the same three metals. A grade of 1.01 g/t over 194 m is a wide intersection, and because RC and diamond drilling at Southwest are drilled at various angles, the reported lengths are downhole lengths. The company describes the mineralisation as extending to surface, which would allow open cut mining with a low waste ratio if it holds across the deposit. The high-grade sections, such as 5.60 m at 4.29 g/t PGE3, are short and may be selectively mined and processed. The maiden resource will show how much of this converts into a defined tonnage and grade.

Risks

The intercepts are drill results, not a resource, and the Economics of grades around 1 g/t 3E over wide intervals depend on mining costs and metal prices. Intercepts are downhole lengths, and mineralisation is described as open, so the resource size is unknown. A scoping study and later studies are required before any development decision, and funding and metal prices will matter. The large Backlog of assays means results may differ.

What to Watch

Items include remaining assay results, the maiden Mineral Resource Estimate in Q1 CY2027, metallurgical testwork results and the scoping study.