Terra Metals Drills 448m PGE-Cu-Ni Intercept at Southwest Discovery

Terra Metals Drills Broadest-Ever Dante Intercept at Southwest, with 448m of Continuous PGE-Cu-Ni Mineralisation

Terra Metals Limited (ASX: TM1) has reported first diamond tail assays from the Southwest Discovery at its Dante Project in Western Australia, with drilling returning 448m @ 0.87 g/t PGE3 and 0.15% Ni from 102m in hole SWRD051. According to the ASX announcement, this is the broadest mineralised interval reported at Dante to date and sits entirely outside the company's existing 148 Mt Dante Mineral Resource.

The update matters because it shifts Southwest from a promising target to a discovery with demonstrated thickness, continuity and scale. Furthermore, Terra Metals said drilling has now outlined a mineralised corridor extending more than 950m along strike, about 700m across strike and at least 750m down-dip from surface, with the system still open along strike and at depth.

What Do the Drilling Results Show?

The key assay result came from SWRD051, where the diamond tail confirmed a long, continuous interval of platinum-group metals, nickel and copper mineralisation through a broad mafic-ultramafic rock package. Within that broader zone, higher-grade intervals were also reported, suggesting the system contains multiple mineralised horizons rather than one single narrow layer.

The company also released results from SWRD052 and the RC pre-collar of SWRD055, adding further support to the view that mineralisation is persistent across the Southwest Main Sulfide Corridor.

All widths are reported as downhole lengths. True widths are not yet known.

A further point of note is the shallow start to mineralisation in SWRD051, beginning from just 102m downhole. Management said recent shallow drilling, together with the diamond tail results, indicate potential for a shallow starter pit transitioning into a larger system at depth, subject to further drilling.

What Does Leadership Think?

"These first diamond tail results have significantly strengthened our confidence in the scale and geological potential of the Southwest Discovery," said Thomas Line, CEO & Managing Director.

"Importantly, mineralisation begins at shallow depth and remains open along strike and at depth."

Why Is Southwest Separate from the Current Dante Resource?

A central point in this exploration update is that Southwest is not part of the existing Dante Mineral Resource Estimate (MRE). Terra Metals' current Dante resource, reported in August 2025, totals 148 Mt and is based on stratiform reef-hosted mineralisation within the Jameson Layered Intrusion.

In contrast, the Southwest Discovery is described as a broader magmatic sulfide system developed through multiple mafic and ultramafic rock units. That distinction matters because it suggests a different mineralisation style, a larger mineralised thickness, and potential for additive resource growth rather than a revision to the current resource base.

Terra Metals said Southwest appears to contain disseminated, net-textured and locally semi-massive sulfide mineralisation. In simpler terms, sulphide minerals occur not only as fine grains spread through the rock, but also in more concentrated forms that can sometimes be associated with higher-grade zones.

How Does Exploration Leadership Interpret the System?

"Southwest does not appear to be a simple stratiform horizon," said Barry Jones, General Manager – Operations and Exploration.

"This supports our interpretation of Southwest as a large polymetallic magmatic sulfide system with the potential to become one of the more significant systems of its type in Australia."

That statement is management's interpretation rather than a confirmed development outcome. However, it explains why the market is likely to focus on future scale and resource definition work.

Understanding the Geology and Why Thickness Matters

For non-specialist investors, the geology is worth unpacking because it helps explain why a 448m intercept can be material even when grades are moderate on a bulk basis.

A layered mafic-ultramafic intrusion is a large body of magma that cooled slowly underground. As it cooled, different minerals settled into layers, creating stacked rock units that can host metals such as platinum, palladium, gold, nickel and copper. The Jameson Layered Intrusion, which hosts the Dante Project, forms part of the broader Giles Intrusive Complex in the West Musgrave region.

In some layered intrusions, valuable metals occur in relatively thin but laterally extensive horizons called reefs. Southwest appears different. According to the company, mineralisation is spread through a much thicker package of rock, with several higher-grade zones embedded within the broader interval.

Why Does Thickness Matter for Resource Potential?

A thick mineralised package can support a larger total metal inventory if mineralisation continues across a broad footprint. At Southwest, current drilling has outlined:

• More than 950m of strike extent
• Approximately 700m of width
• At least 750m of down-dip extent
• Up to 448m of continuous downhole mineralisation
• An interpreted true thickness of around 400m

That does not yet translate into a Mineral Resource Estimate, and the company has stated the project remains at an early stage. Nevertheless, for investors assessing exploration upside, thickness plus footprint is often a key indicator of possible scale.

How Are Geophysics and Drilling Working Together?

The announcement also highlighted ongoing geophysical work alongside the drilling campaign. Terra Metals said Ground EM, Downhole EM and Downhole Televiewer programs are helping refine the geometry of the system and generate new targets.

An EM survey detects conductive bodies below surface. In sulphide exploration, this can be useful because more concentrated sulphide accumulations conduct electricity better than surrounding rock. In practical terms, EM anomalies can point to areas where higher-grade sulfide zones may be present, although drilling is still required to confirm any anomaly represents mineralisation.

The Downhole Televiewer program provides structural measurements from inside drillholes, helping geologists understand the orientation of rock layers, fractures and mineralised zones. Better structural information can improve drill targeting and support future resource modelling. According to the announcement, several new EM targets have already been identified since the programme began in March 2026.

What Comes Next at Southwest?

The report outlined a busy pipeline of catalysts for the remainder of 2026. Multiple diamond tails remain pending assay, including the deep tail on SWRD055, which was drilled to 618.3m, and further deep holes of up to 918.3m.

Key upcoming work includes:

1. More assay results from additional Southwest diamond tails
2. Testing of new EM targets that may represent more conductive sulphide accumulations
3. Structural interpretation from televiewer data
4. Continued drilling to extend the ultramafic package along the main sulfide corridor
5. Heritage surveys to expand drill access across the broader Southwest area
6. Grid-spaced drilling aimed at supporting a maiden resource
7. A maiden Southwest MRE targeted for late 2026
8. Metallurgical testwork and flowsheet development following resource definition
9. Progress toward a Pre-Feasibility Study after a maiden MRE is reported

This sequencing is important. The current release confirms geological scale, but investors will be looking for the next layer of de-risking: more assays, continuity data, geometry, metallurgy and eventually a formal resource estimate.

The Existing Dante Resource Provides Context

Southwest is being advanced alongside an already defined Dante resource, which gives Terra Metals a broader project base than a single early-stage target.

According to the company's 2025 resource statement, that inventory contains 1.6 million ounces of PGE3 alongside titanium, vanadium and copper. If Southwest advances to a maiden resource, management has indicated it would sit outside and in addition to that existing inventory.

Why Does This Announcement Matter for ASX Investors?

From an investor perspective, several points stand out.

First, the drilling results support the presence of a large mineralised system rather than a single isolated intercept. SWRD051 and SWRD052 both returned broad intervals, and every reported hole in the corridor has intersected sulphide mineralisation.

Second, the system starts relatively shallow and extends to meaningful depth. That combination may be relevant for future mine design studies if resource work and economic studies continue to support development.

Third, Southwest is outside the existing Dante resource boundary. That means any future resource inventory defined there would be additive at the company level, rather than a redistribution of what already exists.

Fourth, the project still has a large amount of news flow ahead. With five rigs operating, active geophysical programmes and multiple assays pending, the remainder of 2026 is likely to be shaped by regular exploration updates.

In conclusion, the current announcement does not establish an economic resource, and true widths remain to be confirmed. What it does provide, however, is stronger evidence that Southwest is evolving into a material discovery within the broader Dante Project. For TM1, the next stage will be about converting scale into a clearer resource picture.

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