Black Canyon Upgrades Wandanya Manganese to 40–45% Mn Using Simple Processing

Black Canyon Upgrades Wandanya Manganese to 40–45% Mn Grade Using Simple Processing

Black Canyon Limited (ASX: BCA) has delivered a significant metallurgical breakthrough at its Wandanya Project in Western Australia. Stage 3 beneficiation trials have consistently upgraded blended manganese feed material to premium product grades of between 40% and 45% Mn using straightforward density-based processing methods. Combined with impressive iron ore lump results, the latest testwork strengthens the multi-commodity development case at Wandanya.

Stage 3 Testwork Results Demonstrate Consistent Grade Uplift

The Stage 3 programme applied Heavy Liquid Separation (HLS) to two blended composite samples, each formulated from combinations of the low, medium, and high-grade manganese oxide (MnO) composites characterised in earlier testwork stages. The objective was to understand how real-world blended feed material responds to density-based beneficiation.

According to the announcement, both blends achieved product grades well above the 44% Mn benchmark at higher density separation, with recoveries that compare favourably against industry operating norms.

Table 1: Stage 3 HLS Blended Composite Results Summary

The testwork demonstrated that Black Canyon Wandanya manganese upgraded to 40–45% Mn using simple processing methods across all tested conditions. Both blends achieved product grades above 40% Mn at SG 2.8, and above 43% Mn at SG 3.0, representing feed grade uplifts of approximately 10–15 percentage points.

Recoveries across all four test conditions ranged between 73% and 82%, with the higher recovery of 82% achieved in Blend 2 at the lower separation density.

Low Penalty Elements Enhance Product Quality

Beyond headline grades, the composition of the beneficiated product is equally important for commercial attractiveness. The testwork demonstrated that the upgraded manganese products carry low concentrations of penalty elements, described as a key requirement for steel and battery-grade manganese end markets.

Table 2: Beneficiated Product Specification — Penalty Element Summary

Phosphorus levels across all products measured between 0.01–0.02%, which the company describes as notably low. Furthermore, aluminium and silica concentrations were also modest, suggesting a clean product that should be attractive to potential offtake partners.

Understanding Heavy Liquid Separation (HLS) Technology

What Is HLS and Why Does It Matter?

Heavy Liquid Separation is a laboratory-scale beneficiation technique used to assess how well a mineral ore can be concentrated using differences in density. A liquid of known specific gravity (SG) is used, with ore particles that are denser than the liquid sinking to the bottom — the sinks fraction — whilst lighter material floats.

In manganese beneficiation, the dense manganese-bearing minerals naturally report to the sinks fraction, whilst lighter waste minerals such as silicates and carbonates float off as the rejected fraction. By testing at different liquid densities — in this case SG 2.8 and SG 3.0 — Black Canyon can understand the trade-off between achieving a higher product grade versus maximising the proportion of manganese recovered.

"HLS results are directly analogous to Dense Media Separation (DMS), the technology used at established manganese operations including Woodie Woodie and Groote Eylandt. Positive HLS results provide a strong technical indicator that the ore body is amenable to a proven, commercially-deployed processing route, which reduces technical risk and supports the economics of a future Scoping Study."

Key Terms Explained

• HLS (Heavy Liquid Separation): Laboratory density separation technique used to predict beneficiation performance
• DMS (Dense Media Separation): Industrial-scale version of HLS, used at major operating manganese mines
• SG (Specific Gravity): The density of the liquid used to separate minerals; higher SG equals denser cut, potentially higher grade but lower recovery
• Sinks fraction: The denser, mineralised product that settles to the bottom during density separation
• Mn recovery: The proportion of total manganese in the feed that reports to the product, a measure of processing efficiency
• Penalty elements: Contaminants such as phosphorus, silica, and aluminium that can reduce the commercial value of a mineral product

Iron Ore Results Add Second Commodity Dimension

Alongside the manganese testwork, Black Canyon conducted drop tower tests on iron ore samples from Wandanya, with results adding a meaningful second commodity dimension to the project.

Drop tower testing physically simulates the handling stresses that iron ore undergoes during conveying, loading, and shipping. The critical output is the lump-to-fines ratio, where a higher lump fraction is commercially valuable because lump ore commands a pricing premium over fines.

Table 3: Iron Ore Drop Tower Test Results

The 74% lump fraction is described as a standout result. Typical Pilbara iron ore operations produce only 30–40% lump, with the remainder attracting lower pricing as fines. Wandanya's iron ore appears considerably more durable, with the lump product grading at 59.7% Fe and carrying very low phosphorus of just 0.01%.

Management Commentary on Development Progress

"Black Canyon's latest metallurgical testwork at Wandanya has reinforced the project's strong development potential, with beneficiation trials consistently upgrading blended manganese feed material from ~30% Mn to premium products grading between 40% and 45% Mn. The results demonstrated strong recoveries of up to 82% using simple density-based processing methods, while also producing low-impurity products attractive to potential end users. Together with strongly positive iron ore lump content and ongoing resource drilling, the programmes continue to strengthen confidence in Wandanya's scalability, processing optionality, and future economic potential."

— Brendan Cummins, Managing Director, Black Canyon Limited

Systematic Three-Stage Programme Delivers Results

The systematic progression of testwork has brought Black Canyon to this significant milestone.

Stage 1 comprised the creation of master composite samples from PQ3 diamond drill core, covering low, medium, and high-grade MnO material. Samples were crushed, homogenised, and characterised for head grades — low grade: 24.4% Mn; medium grade: 30.9% Mn; high grade: 45.0% Mn.

Stage 2 applied HLS testwork separately to the individual composites, demonstrating that each fraction could be upgraded above 40% Mn and establishing the grade-recovery relationship for each feed type. Direct Ship Ore (DSO) potential was also identified at this stage.

Stage 3 (current) tested blended composites proportioned to reflect geometallurgical reality. The announcement confirms that Black Canyon Wandanya manganese upgraded to 40–45% Mn using simple processing consistently across both blends, confirming that the blend strategy works and providing feed specifications required to advance to larger-scale DMS testwork.

Resource Drilling Programme Advances

Metallurgical results require an underlying resource to provide economic meaning. According to the announcement, Black Canyon's resource definition RC drilling programme is making steady progress. Key points include:

• The resource definition programme targets 15,000 metres of RC drilling
• Approximately 40% of the programme has been completed as of the announcement date
• The programme focuses on the 3km long base case zone of mineralisation at Wandanya
• Assay results are expected in the coming weeks, representing a near-term catalyst
• The drilling programme was announced to the ASX on 14 April 2026

Additionally, baseline environmental and heritage surveys have recently been completed, including detailed flora/vegetation, fauna, short range endemics (SRE), and heritage surveys.

Near-Term Development Pathway

Table 4: Planned Next Steps and Near-Term Catalysts

The DMS testwork programme is specifically designed to approximate the beneficiation processing used at Australia's operating manganese mines, providing direct operational comparability to the results.

Investment Considerations for Wandanya Project

Proven Processing Technology Amenability

The HLS results confirm Wandanya's mineralisation responds well to density-based separation — the same technology deployed at the country's producing manganese mines. This is not an experimental processing pathway but proven industrial technology with established capital and operating cost benchmarks.

Commercial Grade Thresholds and Recovery Rates

The consistent achievement of Black Canyon Wandanya manganese upgraded to 40–45% Mn using simple processing, from blended feed of approximately 29–32% Mn, is commercially meaningful. Many manganese markets, particularly for manganese alloy production, have minimum grade requirements in the 40%+ range.

Furthermore, recoveries of 73–82% mean that the large majority of manganese in the feed is captured in the product. Higher recoveries translate directly to better project economics, reducing the effective cost per tonne of saleable product.

Dual-Commodity Potential and Broader Resource Base

The iron ore drop tower results — 74% lump at 59.7% Fe — add a separate revenue stream to the project's potential. With lump ore commanding a premium over fines, and Wandanya's lump ratio dramatically exceeding typical Pilbara benchmarks, this represents a potentially meaningful commercial differentiator.

In addition, Black Canyon holds over 2,000km² in the underexplored Balfour Manganese Field and Oakover Basin. Across the broader BMF projects, the company has defined a Global Mineral Resource of 315 Mt @ 10.5% Mn (announced October 2025). Manganese is described as essential and non-substitutable in alloy manufacturing for the steel industry, whilst also serving as a critical mineral in lithium-ion battery cathodes.

Corporate Structure and Near-Term Catalysts

Capital Structure Overview (ASX: BCA)

Black Canyon is methodically assembling the technical building blocks required for a credible Wandanya Scoping Study. With each stage of the testwork programme, the development thesis has grown more concrete: the mineralisation upgrades well, recoveries are robust, penalty elements are low, and an entirely separate iron ore product could add further commercial optionality.

The coming weeks represent a particularly active period for newsflow, with RC drilling assays expected shortly and DMS testwork advancing. Combined, these programmes are expected to directly inform the geometry and economics of the planned Scoping Study.

Key Investment Takeaway

Black Canyon Limited has systematically demonstrated that Wandanya's blended manganese feed can be upgraded to commercially relevant grades using proven, industry-standard processing methods. The results consistently show Black Canyon Wandanya manganese upgraded to 40–45% Mn using simple processing, with recoveries of up to 82% and low penalty element profiles.

With RC drilling assay results imminent, DMS testwork commencing, and a Scoping Study on the horizon, the company is entering a period of accelerating technical and newsflow momentum that warrants close investor attention.

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