WA Government Boosts Black Canyon’s Manganese Drill Programme

Government Recognition Boosts Exploration of High-Grade Discoveries

Black Canyon Limited (ASX: BCA) has secured a significant boost for its exploration activities, receiving a $122,500 co-funded drilling grant under the Western Australian Government's Exploration Incentive Scheme (EIS). This merit-based grant recognises the technical innovation and potential of the company's Wandanya manganese and iron project.

The funding will support an upcoming Phase Two Reverse Circulation (RC) drill program comprising 150 drill holes for 3,000 meters, with all necessary approvals in place following a recently completed Heritage Survey. This program aims to expand on Black Canyon's promising initial results at Wandanya, where the company has only tested 240 meters of a 3-kilometer long manganese target.

"The project already has a large, mineralised footprint extending over 3km in outcrop based on mapping and rock chip sampling but has seen little drilling to date," said Managing Director Brendan Cummins. "Our initial drill program confirmed the proof of concept with the discovery of consistent, well mineralised and continuous horizons of high-grade manganese."

Impressive High-Grade Results Drive Exploration Momentum

The Wandanya project has already delivered exceptional manganese assay results from initial drilling, including:

• 5m @ 31.1% Mn from surface, including 2m @ 42% Mn
• 7m @ 26.3% Mn from 2m, including 3m @ 38.2% Mn
• 6m @ 29.6% Mn from surface, including 3m @ 41.0% Mn
• 5m @ 32.4% Mn from 3m, including 3m @ 40.1% Mn

Additionally, rock chip sampling of outcropping iron formations has returned impressive results including 64.3%, 62.4%, 58.8%, 58.6%, 63.3%, 63.1 and 57.6% Fe.

Understanding Hydrothermal Manganese Deposits

The Wandanya discovery represents a new exploration model on the eastern margin of the Oakover Basin, featuring hydrothermal, strata-bound high-grade manganese and iron mineralisation. Unlike sedimentary manganese deposits, which form through the precipitation of manganese from seawater, hydrothermal manganese deposits form when hot, mineral-rich fluids circulate through rocks and deposit manganese in concentrated forms.

For investors, hydrothermal deposits often present advantages including:

• Higher grades compared to sedimentary deposits
• More concentrated mineralisation, potentially reducing mining costs
• Better defined boundaries, allowing for more targeted extraction

These characteristics can translate to more efficient resource development and potentially higher returns on investment if commercial quantities are delineated.

Strategic Exploration Plan Maximises Coverage

The Black Canyon Ltd manganese drill program will systematically test the Wandanya targets:

1. Southern Area: Drilling down-dip and to the east of the W2 prospect, extending known mineralisation up to 200m from Phase 1 drilling
2. Northern Area: First-time drilling across approximately 900m of strike along the stratabound manganese target
3. Iron Targets: Multiple 100m-spaced traverses along 900m of strike, located west and up-dip of the manganese outcrops

The most northern drill traverse will extend 850m, creating a complete section from the iron-rich ridge outcrops to the down-dip manganese occurrences to the east. Drill line spacing will vary between 100m and 350m, with hole centres approximately 40m apart on each line.

A future Phase Three program is planned to complete testing of the full 3km strike potential, with timing dependent on Phase Two results.

Investment Potential: A Growing Manganese Resource Base

Black Canyon has established itself as a significant player in the Western Australian manganese sector, having consolidated a 1,700km² land holding across the Balfour Manganese Field (BMF) and Oakover Basin. The company has already defined a substantial Global Mineral Resource of 314 Mt @ 10.4% Mn across its Balfour projects, comprising:

• 100Mt @ 10.4% Mn (Measured)
• 150Mt @ 10.1% Mn (Indicated)
• 64Mt @ 11.9% Mn (Inferred)

The Wandanya discovery represents a potential high-grade complement to this substantial resource base, with the added benefit of iron mineralisation that could enhance project economics.

Why Investors Should Monitor Black Canyon

The company presents a compelling investment case based on several key factors:

1. Resource Scale and Growth: With a substantial existing resource base and high-grade results from Wandanya, Black Canyon has demonstrated both volume and quality potential.

2. Government Recognition: The EIS grant validates the technical merit of the project and reduces exploration costs.

3. Dual Commodity Opportunity: The presence of both high-grade manganese and iron provides commodity diversification within a single project area.

4. Critical Mineral Exposure: Manganese is essential for both traditional steel manufacturing and emerging battery technologies, positioning the company in both established and growth markets.

5. Strong Capital Structure: With 129.4M shares on issue and significant institutional backing (28%), the company has a solid foundation for growth.

With drilling approvals in place and the EIS funding secured, investors can anticipate regular news flow as the company advances its systematic exploration of this promising discovery.

Key Takeaway: Black Canyon has positioned itself as an emerging player in the critical minerals space, with government-backed exploration of a potentially significant high-grade manganese and iron discovery. With only a fraction of the 3km strike length tested to date and impressive initial results, the upcoming drilling program represents a material catalyst for the company in 2025.

Want to Be Part of This Emerging Manganese Story?

Don't miss the opportunity to follow Black Canyon's progress as they expand their high-grade manganese and iron discoveries at Wandanya with government-backed funding. With an established 314Mt resource base and exceptional new drill results showing up to 42% manganese, this ASX-listed critical minerals player is worth a closer look. For comprehensive investor information, project updates and to stay informed about the upcoming 3,000-metre drill programme, visit Black Canyon's Investor Dashboard.