Terra Metals Returns High-Grade PGM Hits at Dante Southwest Discovery

Terra Metals Confirms Growing Southwest Sulfide System at Dante with New High-Grade PGM-Copper-Nickel Hits

Terra Metals Limited (ASX: TM1) has reported another set of strong drill results from the Southwest Discovery at its Dante Project in Western Australia, with two new reverse circulation holes supporting the view that a large PGM-copper-nickel-cobalt sulfide system is being defined outside the company's existing mineral resource.

According to the ASX announcement, holes SWRC058 and SWRC033 were drilled between the SW5 and SW6 discovery zones and both intersected broad zones of sulfide mineralisation. The latest results extend a pattern in which every reported infill and extensional hole at Southwest has intersected sulfides, an outcome that continues to support continuity across the corridor.

The company stated that the Southwest Sulfide Corridor has now been defined over more than 950 metres of strike, approximately 650 metres across strike, and at least 750 metres down dip from surface. It remains open along strike and at depth, with most holes from the 2026 drilling program still awaiting assays.

"Southwest has now been defined over more than 950 metres of strike, approximately 650 metres across strike, and at least 750 metres of down-dip extent from surface, while remaining open along strike and at depth," said Thomas Line, CEO & Managing Director. "Importantly, the majority of drillholes completed during the 2026 program remain pending assays, providing significant scope for further growth."

Latest Drill Results Support Continuity Between SW5 and SW6

The latest announcement centres on two RC holes designed to test whether mineralisation between SW5 and SW6 forms part of a single mineralised system. Based on the results reported, the drilling has added meaningful support to that interpretation.

Does SWRC058 Return the Strongest Grade in the Update?

Hole SWRC058 delivered the standout interval from this batch, with a broad mineralised zone from relatively shallow depth.

The most eye-catching result was the 2 metres at 9.74 g/t PGE3 from 85 metres, sitting within a wider 20 metre interval grading 2.12 g/t PGE3. For investors, high-grade internal zones can matter because they may point to metal-rich parts of the system within a broader mineralised package.

The hole also returned additional mineralised intervals below the main zone. Furthermore, Terra Metals noted these deeper hits may indicate potential for extensions at depth, although true widths are not yet known.

How Does SWRC033 Add to the Southwest Discovery Picture?

Hole SWRC033 also returned a broad main zone and added a separate cobalt-rich interval near surface.

The main intercept of 22 metres at 1.21 g/t PGE3 from 66 metres adds further support to the continuity case between the two discovery zones. Within that, the 3 metres at 2.15 g/t PGE3 from 85 metres shows local higher-grade development.

The shallow cobalt interval, reported as 5 metres at 1,155 ppm cobalt from 3 metres, is also relevant. While early-stage intercepts do not confirm economic extraction, the presence of cobalt adds another metal to an already diversified mineral suite.

Why Magmatic Sulfide Systems Matter

The ASX update repeatedly refers to Southwest as a magmatic sulfide system. For non-specialist investors, this term is worth understanding because it describes the geological process that concentrates metals such as platinum, palladium, nickel, copper and cobalt.

A magmatic sulfide deposit forms when molten rock cools and a sulfur-rich liquid separates from the rest of the magma. That sulfur-rich liquid can collect metals very efficiently, creating concentrated zones of sulfide mineralisation. These deposits are an important global source of platinum group metals (PGMs) as well as nickel, copper and cobalt.

At Southwest, Terra Metals said the mineralisation is not confined to a single narrow reef. Instead, the mineralised zones are described as extending across multiple mafic to ultramafic rock types and over greater thicknesses than the existing Dante Reefs MRE. In practical terms, that points to a different style of mineralisation from the resource already defined at Dante.

Simple Glossary for Key Technical Terms

This matters because some magmatic sulfide systems can develop both broad mineralised zones and more concentrated feeder-style accumulations. In addition, Terra Metals said Southwest demonstrates the potential for multiple styles of PGM-Cu-Ni-Co mineralisation within the broader intrusive system.

Southwest Sits Outside Terra Metals' Existing Dante Resource

One of the more material points in the announcement is that the Southwest Discovery is located outside the company's existing 148 Mt Dante Mineral Resource Estimate. That means this is not simply a small extension to a known resource area, but a separate corridor that may add to the broader project inventory if drilling continues to support scale and continuity.

The existing Dante resource, reported in August 2025, is summarised below.

According to the company, the Dante resource contains approximately 1,600 koz PGE3, 270 kt copper, 22 Mt TiO2, and 800 kt V2O5. This existing mineral resource provides a base case for the broader project, while Southwest is being advanced as a separate growth area.

Management described Southwest as "a new mineralised corridor within the broader Jameson Layered Intrusion". The distinction is important for valuation. If Southwest can support its own maiden resource estimate later in H2 2026, the market may begin to assess Dante as having more than one material mineralised system.

District-Scale Landholding Adds Exploration Depth

The broader geological setting also remains part of the investment case. Terra Metals stated that it controls approximately 80 kilometres of strike and 30 kilometres of prospective width in the Jameson Layered Intrusion, part of the Giles Complex in the West Musgrave region.

That scale does not guarantee further discoveries, but it does provide a large search space for additional targets. The company said multiple mineralised reef systems and sulfide discoveries have already been identified, including Southwest, Reef 5 and Cronus.

The report also referenced the SW2 prospect, located about 2 kilometres west of the SW5-SW6 corridor, where drilling has identified a large Iron Oxide Apatite (IOA) intrusive body. Terra Metals said this body hosts thick intervals of iron, titanium, phosphorus, scandium, vanadium and zirconium mineralisation, along with local sulfide enrichment.

For investors, the relevance is not that all of these commodities will necessarily become development priorities. Rather, the coexistence of multiple mineralisation styles may indicate a large and long-lived magmatic system across the Southwest area.

What to Watch Next in the Southwest Update

The announcement outlined a clear next phase of work, with several near-term and medium-term items that could shape market attention through the rest of 2026.

Near-Term Catalysts

• Pending assays from the majority of drillholes completed in the 2026 program
• Results from RC-diamond tail holes along the main Southwest Sulfide Zone
• Completion of a heritage survey to open the broader area for grid-spaced drilling
• Continued diamond drilling to test extensions to the mafic-ultramafic sulfide unit
• Progress toward a maiden Southwest Mineral Resource Estimate in H2 2026

Follow-Up Technical Work

The pending assays may be particularly important because management said the majority of completed 2026 holes have not yet been reported. In early-stage discoveries, a steady flow of drill results can materially influence how the market interprets scale, consistency and geological style.

Why Investors Are Watching Terra Metals

For investors, Terra Metals currently presents two related but distinct project elements. The first is the established Dante Mineral Resource, which already contains a substantial inventory of PGMs, copper, titanium and vanadium. The second is the emerging Southwest Discovery, which is outside that resource and is being drilled as a separate sulfide corridor.

Several features stand out from the latest update:

• Consistent drilling success: every reported infill and extensional hole at Southwest has intersected sulfide mineralisation, according to the company
• Broad multi-commodity exposure: platinum, palladium, gold, copper, nickel and cobalt are all part of the Southwest metal suite
• Scale indicators are building: the corridor is now defined over 950 metres strike, 650 metres width, and 750 metres down dip
• Standalone growth potential: Southwest is being advanced toward its own maiden MRE in H2 2026
• Ongoing newsflow: most 2026 assays remain pending

However, that does not remove the need for further drilling, resource definition and technical work. Southwest is still at an exploration and delineation stage, and the company itself notes that geological interpretations remain preliminary and subject to refinement as more drilling and structural data become available.

Nevertheless, the latest results strengthen the case that Terra Metals is defining a sizeable sulfide system at Southwest rather than isolated mineralised zones. If upcoming assays continue to support continuity between SW5 and SW6, attention is likely to remain on whether the company can convert this emerging discovery into a material addition to the Dante project inventory.

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