Black Canyon Confirms 400m Southern Extension at Wandanya Ahead of MRE

Black Canyon Confirms 400m Southern Extension at Wandanya as Maiden Resource Estimate Remains on Track

Black Canyon Limited (ASX: BCA) has reported the fourth and final round of assay results from resource definition and expansion drilling at the Wandanya Project in Western Australia, confirming a 400-metre southern extension to the manganese mineralised footprint and maintaining momentum toward a maiden Mineral Resource Estimate (MRE) in September 2026.

According to the ASX announcement, the latest results come from 142 reverse circulation (RC) drill holes for 2,823 metres, with an average hole depth of 28 metres. The drilling was focused on the southern part of the company's 3km base case target, where Black Canyon said it continues to see shallow, high-grade and laterally consistent manganese mineralisation.

"What continues to set the Wandanya discovery apart is the grade and predictability of the mineralisation. The grade and thickness are remarkably consistent along and across strike with many intercepts indicating Direct Ship Ore potential and exceeding 40% manganese," said Brendan Cummins, Managing Director.

"With all resource drilling assays in hand, the Maiden Mineral Resource Estimate for both manganese and iron is on track for completion in September 2026."

Final Drilling Assays Support Resource Confidence

In the report, Black Canyon said the resource definition drilling within the southern zone extends across 1,600 metres of strike and was completed on a 50m x 50m grid. This tighter drill spacing was designed to improve geological confidence and, according to the company, is expected to be suitable for Indicated or Measured Mineral Resource categories under the JORC 2012 Code.

For investors, this matters because resource confidence can influence the quality of later-stage technical studies. Higher-confidence resource categories are typically more useful when companies begin assessing mine design, production schedules and project economics.

Some of the more prominent manganese intercepts from this final batch include:

These results are reported as downhole lengths. Black Canyon stated that, given the shallow easterly dip of the mineralised horizon and the vertical drill orientation, the intercepts are interpreted to be close to true widths.

The broader pattern in the report is one of repeatable grade rather than isolated high-grade hits. That can be an important distinction at the resource stage, because continuity often has just as much value as peak assays when an initial mineral inventory is being prepared.

Southern Extension Adds Further Scale to the Base Case

One of the most material outcomes from the latest drilling is confirmation that Wandanya's mineralisation extends 400 metres south beyond the previously defined base case area. Furthermore, Black Canyon also stated that this southern extension remains open for a further 1.4km, providing additional exploration room beyond the upcoming maiden resource estimate September 2026.

Reported intercepts from the new southern area include:

• WDRC912: 5m @ 29.4% Mn from 3m, including 2m @ 48.1% Mn from 6m
• WDRC913: 6m @ 26.7% Mn from 2m, including 2m @ 41.7% Mn from 6m
• WDRC915: 4m @ 44.8% Mn from 4m, including 2m @ 51.2% Mn from 5m

The 51.2% manganese internal interval in WDRC915 ranks among the highest-grade single intervals reported in the programme to date. While narrow high-grade intervals do not by themselves define a resource, they can help support the company's view that parts of Wandanya may host Direct Ship Ore (DSO) grade material.

Black Canyon said only 4.8km of the broader 9km mineralised system has been tested so far. Future drilling is planned both south of the current footprint and across a further 2.8km to the north.

What Direct Ship Ore Means and Why It Matters

For non-specialist investors, Direct Ship Ore is a useful concept to understand when evaluating manganese projects.

DSO generally refers to ore that may be mined and sold with only basic treatment such as crushing, screening and drying, rather than requiring a large and costly processing plant. In practical terms, ore of this type can offer a simpler development path if enough material exists at the right grade, scale and impurity levels.

In manganese, DSO discussions often arise when grades move into the mid-30% to 40%+ Mn range. At Wandanya, Black Canyon has reported multiple intervals above 40% Mn, with several internal intervals above 45% Mn and one reaching 51.2% Mn.

That does not confirm a future DSO operation. However, according to the announcement, these grades are part of the reason management continues to reference DSO potential. The company also pointed to positive pilot-scale metallurgical trials and the ability to produce high-quality, low-impurity concentrates, which management said has helped reduce technical uncertainty.

Key Terms Explained

• DSO refers to ore that may be shipped after simple preparation rather than complex processing.
• MRE stands for Mineral Resource Estimate, a formal estimate of tonnes and grade prepared under reporting codes such as JORC.
• RC drilling is a fast and commonly used drilling method for shallow deposits, producing rock chip samples typically collected at 1-metre intervals.

Geological Consistency Remains Central to the Wandanya Story

In the report, Black Canyon described the mineralisation at Wandanya as stratabound and shallow dipping to the east. In simpler terms, this means the manganese occurs in a relatively flat, layered horizon that can be followed across the project area.

This style of mineralisation can be favourable for resource modelling because it may be more predictable than irregular or structurally complex ore zones. The company said grade and thickness have remained consistent along strike and down dip, with cross-strike widths supported over roughly 350m to 600m.

The announcement also noted a change in mineral style with depth. Near surface, the higher-grade material is associated with manganese oxide, while further east and at depths of about 20m to 25m, the mineralisation transitions into manganese carbonate. For general readers, that simply means the manganese occurs in different chemical forms depending on depth and location, which can influence processing behaviour.

Black Canyon also continues to assess iron mineralisation at Wandanya. According to the company, the hematite-rich iron horizon appears to be a thicker, up-dip lateral equivalent of the manganese zone, although further work is still required to fully understand that geological relationship.

By the Numbers: What the 2026 Programme Has Delivered

The latest release marks the completion of Black Canyon's current resource drilling cycle ahead of the maiden resource estimate September 2026. On the company's figures, a sizeable field programme has now been completed during 2026.

The company said the final assay package has now been received, alongside QAQC data, LIDAR, DGPS collar pickups and downhole density surveys. Those datasets are generally important components of mineral resource estimation work.

Maiden MRE and Scoping Study Define the Next Catalysts

With drilling assays now in hand, Black Canyon said the maiden MRE for both manganese and iron remains on track for September 2026. In addition, the company stated that the results will feed into a Scoping Study, currently targeted for December 2026.

That sequence matters because it moves Wandanya from an exploration story toward an early development assessment. The MRE is intended to answer the "how much" question, while the Scoping Study is expected to address preliminary development pathways, cost assumptions and potential project economics.

The timeline outlined in the report includes:

The planned 5,000m RC drilling programme is aimed at testing the open extensions north and south of the current base case footprint. In parallel, Black Canyon said processing and interpretation are continuing for a detailed gravity survey over 38km².

It is important to distinguish what the gravity work represents. The company said the survey data may help identify deeper buried mineralisation associated with underlying sedimentary sequences. It was noted in the announcement that the survey was co-funded through the WA Government Exploration Incentive Scheme, but the ASX release does not state that this equates to project-specific development support.

Investor Perspective: Resource Scale, Grade and Timing Are Now the Focus

Wandanya sits within Black Canyon's broader land package of more than 2,000km² across the Balfour Manganese Field and Oakover Basin. The company also highlighted its existing Global Mineral Resource of 315 Mt @ 10.5% Mn across BMF projects, with about 87% in the Measured and Indicated categories.

Against that backdrop, Wandanya appears differentiated by reported head grades. The current drilling has produced many manganese intervals in the 30% to 40%+ range, which is materially higher than the group-wide BMF resource grade quoted by the company.

What Are the Key Questions for Investors?

For investors, the near-term focus is likely to centre on four practical questions:

• Can the September 2026 maiden MRE convert these drilling results into a meaningful initial resource?
• Will the resource support the company's stated plan to assess Wandanya as a dual-commodity manganese and iron project?
• Can the Scoping Study in December 2026 show a credible early-stage development case?
• How much additional upside exists across the untested portion of the 9km corridor?

Those questions remain open until formal studies are delivered. However, the latest drilling update strengthens the dataset that will be used to answer them.

Black Canyon's final assay release does not present an economic conclusion. What it does provide is stronger definition around the geometry, grade continuity and growth potential of the Wandanya system ahead of a key reporting period. With the maiden resource estimate September 2026 due shortly and expansion drilling set to resume, Wandanya is moving into a phase where technical results are expected to translate into more measurable development benchmarks.

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