Dual High-Grade Discoveries Position BCA for Growth
Black Canyon (ASX: BCA) has established itself as a significant player in the manganese sector, having built a substantial resource base of 314 million tonnes at 10.5% Mn in Western Australia's Pilbara region. Following recent exploration success, the company has made two potentially game-changing discoveries at its 100%-owned Wandanya Project – high-grade manganese and high-grade iron mineralisation that could significantly enhance the company's growth trajectory.
Wandanya Discovery: High-Grade Manganese with Woodie Woodie Similarities
The newly discovered Wandanya manganese mineralisation appears to be a significant find, with geological characteristics similar to the operating Woodie Woodie Manganese Mine located 80km to the north. Recent RC drilling at the W2 Prospect returned impressive results including:
- 5m @ 31.1% Mn from surface, including 2m @ 42% Mn
- 6m @ 29.6% Mn from surface, including 3m @ 41.0% Mn
- 5m @ 32.4% Mn from 3m, including 3m @ 40.1% Mn
This hydrothermal-style mineralisation has been mapped over a 3km strike length and exhibits a consistent, flat-dipping mineralised horizon that remains open along strike to the north and east.
"Wandanya represents a unique high-grade stratabound mineralisation drilled on every eastern hole of every drill line. The discovery is showing predictability of a continuous mineralised horizon with significant scale potential," said Brendan Cummins, Managing Director.
Compelling Metallurgical Results Support Development Potential
Initial metallurgical testwork on Wandanya manganese samples has delivered excellent results, with density-based beneficiation (HLS) producing concentrate grades between 45% and 50% Mn with recoveries up to 79.5%. These grades are significantly higher than those achieved at the company's Balfour Manganese Field projects, suggesting Wandanya could develop into a premium product opportunity.
This metallurgical performance is particularly significant as it demonstrates the potential for producing high-grade manganese concentrates that would be attractive to both the steel industry and the emerging battery materials sector.
Bonus Discovery: High-Grade Iron at Wandanya
In addition to manganese, Black Canyon has identified high-grade iron mineralisation at Wandanya, with rock chip samples returning exceptional results including 64.3%, 62.4%, and 63.3% Fe. These grades fall within the typical range for Direct Shipping Ore (DSO), with low levels of deleterious elements like phosphorus, silica, and alumina.
The iron mineralisation has been mapped along a 5km striking ridge with widths between 50 and 300 meters, representing another compelling drill target with significant exploration upside.
| Sample ID | Fe % | Al₂O₃ % | SiO₂ % | P % | Description |
|---|---|---|---|---|---|
| WDRC019 | 64.3 | 0.8 | 5.1 | 0.01 | Iron rich sediment |
| WDRC038 | 62.4 | 1.5 | 7.0 | 0.02 | Iron rich sediment |
| WDRC004 | 63.1 | 0.6 | 3.4 | 0.02 | Iron rich sediment |
| WDRC005 | 63.3 | 0.4 | 3.1 | 0.02 | Iron rich sediment |
Scoping Study Demonstrates Project Viability
While the Wandanya discovery represents an exciting new frontier, Black Canyon has already demonstrated the economic potential of its existing resources through a Scoping Study on the KR1 and KR2 deposits within the Balfour Manganese Field. The study highlighted robust economics with:
- NPV8 of $340 million
- IRR of 70%
- AISC of US$3.38/dmtu
- CAPEX of $84.1 million
This study was based on just 15% of the company's global mineral resource, indicating substantial development optionality across its portfolio.
Understanding Manganese: Essential for Steel and Critical for Batteries
Manganese is both a bulk commodity and a critical mineral with dual market applications. Approximately 90% of manganese is used in steel production, with every ton of steel containing between 6-15kg of manganese. Globally, 55 million tonnes of manganese ore is traded annually, making it the fifth largest commodity consumed worldwide.
Increasingly, manganese is gaining recognition as a critical mineral for the clean energy transition. It's essential for manganese compounds used in EV batteries, particularly in the cathodes of various battery chemistries including NMC, LFMP, HLM, and sodium-based technologies.
Aggressive Exploration Program to Accelerate Growth
Black Canyon's manganese assets in Pilbara continue to expand as the company maintains momentum with an aggressive exploration program at Wandanya:
- Heritage survey completed in April 2025
- Awarded $122,500 through the Exploration Incentive Scheme
- 3,000m RC drilling program planned for June 2025
- Phase 2 extension drilling to increase the footprint 900m to the north
- Phase 3 drilling to test the full 3km strike length (planned for Q3 2025)
- Maiden drill program targeting the iron mineralisation along 900m of strike
The company aims to deliver a maiden mineral resource for Wandanya in Q4 2025, alongside updated resource estimates and scoping studies for its existing projects.
Why Investors Should Take Notice
Black Canyon has accomplished a remarkable feat in just 24 months – discovering the largest manganese resources in Western Australia and positioning itself as the second-largest manganese resource holder in Australia. With a market capitalization of just $7.75 million and enterprise value of $5.11 million (as of April 30, 2025), the company appears significantly undervalued relative to its resource base and development potential.
The company's dual discoveries at Wandanya add considerable exploration upside to an already substantial resource portfolio. With manganese prices supported by strong fundamentals in both the steel and battery sectors, Black Canyon represents a compelling investment opportunity in the critical minerals space.
Key investment catalysts on the horizon include:
- Results from the upcoming Wandanya drilling programs (Q2-Q3 2025)
- Maiden Wandanya Mineral Resource (Q4 2025)
- KR2 Mineral Resource upgrade (Q2 2025)
- Updated KR1 & KR2 Scoping Study (Q4 2025)
- Potential strategic partnerships and offtake agreements
For investors seeking exposure to critical minerals essential for both traditional industries and the clean energy transition, Black Canyon's dual focus on manganese and now iron positions it as a unique and potentially high-reward opportunity at its current valuation.
Ready to Invest in Black Canyon's Dual High-Grade Discoveries?
Discover how Black Canyon's game-changing manganese and iron discoveries at Wandanya could deliver significant shareholder value. With a robust resource base, compelling metallurgical results, and an aggressive exploration programme already underway, BCA presents a unique investment opportunity in the critical minerals sector. To learn more about Black Canyon's projects and upcoming catalysts, visit their investor dashboard today.
