Terra Metals Confirms Continuous PGM-Cu-Ni Sulphide System at Southwest Discovery

Terra Metals Confirms Thick PGM-Cu-Ni Sulfide System at Dante Southwest

Terra Metals Ltd (ASX: TM1) has reported new drilling assays from the Dante Project's Southwest Discovery that confirm a large, continuous and thick platinum group metal, copper and nickel (PGM-Cu-Ni) sulfide system along the full strike length of the Southwest Main Sulfide Zone. These Terra Metals Southwest PGM copper nickel discovery drill results represent a significant development for the company and its investors.

According to the ASX announcement dated 1 July 2026, three Reverse Circulation (RC) pre-collar holes drilled across a 650 metre gap between the SW5 and SW6 discovery zones all intersected broad mineralised intervals and all ended in mineralisation. Diamond drill tails extending these holes to depths of approximately 725 to 918 metres have been completed, with assays pending.

These results sit outside the existing 148 million tonne Dante Mineral Resource Estimate (MRE) and are reported by Terra Metals Ltd to materially increase confidence in the scale and continuity of the Southwest discovery.

"These results continue to demonstrate the scale and continuity of the Southwest discovery. Every RC pre-collar reported in this announcement intersected broad intervals of PGM-Cu-Ni sulfide mineralisation and ended in mineralisation, providing further confidence that we have identified a significant new mineralised system outside the existing Dante Mineral Resource," said Thomas Line, CEO & Managing Director of Terra Metals Ltd.

"The RC pre-collars have successfully demonstrated the continuity of this large mineralised system, while the much deeper diamond tails, completed to depths of up to 919 metres, remain pending assays and represent significant additional upside."

Headline Assay Results and Scale of Mineralisation

The three RC pre-collars were drilled to depths of 246 to 288 metres and then extended with diamond tails. Only the shallow RC portions have been assayed to date.

Key reported intercepts:

All three RC holes:

• Intersected thick, disseminated to locally higher-grade sulfide mineralisation.
• Ended in mineralised ultramafic rocks, indicating the full thickness of the system has not yet been tested.
• Were located along a 650 metre gap between previously reported discovery holes, linking the SW5 and SW6 zones.

According to Terra Metals Ltd, drilling to date has now defined mineralisation at Southwest over:

• >950 metres of strike length
• Approximately 650 metres of width
• At least 750 metres of down-dip extent from surface

The system remains open along strike and at depth, with ongoing drilling and geophysical work aimed at refining its geometry.

Higher-Grade Zones Within Broad Mineralised Envelopes

Within the broad mineralised intervals, the Southwest holes also contain higher-grade sections that are important for assessing potential future economic significance and targeting.

SWRD057 – 194 m @ 0.71 g/t PGE3, 0.11% Ni from 58 m to 252 m (end of RC hole)

Key internal intervals include:

• 34 m @ 1.32 g/t PGE3, 0.10% Ni, 0.13% Cu from 58 m
• 11 m @ 2.62 g/t PGE3, 0.27% Ni, 0.19% Cu from 168 m
• 9 m @ 1.25 g/t PGE3, 0.20% Ni, 0.13% Cu from 243 m to end of RC pre-collar

The continuity of mineralisation from 58 m to 252 m and the presence of multiple higher-grade PGE intervals are described by Terra Metals Ltd as encouraging, particularly with a 724.8 metre diamond tail still awaiting assays.

SWRC053 – 105 m @ 0.87 g/t PGE3 from 183 m to 288 m (end of RC hole)

Base metal assays (Cu, Ni, Co) for this hole remain pending. Furthermore, within the main interval, the following higher-grade PGE3 zones were reported:

• 22 m @ 1.67 g/t PGE3 from 184 m
• 9 m @ 2.01 g/t PGE3 from 186 m
• 1 m @ 2.09 g/t PGE3 from 271 m

A twin diamond hole, SWRD071, has been drilled to 728.9 metres to more effectively test the mineralised system at depth. Assays from this twin are pending.

SWRD052 – 76 m @ 0.87 g/t PGE3, 0.16% Ni from 170 m to 246 m (end of RC hole)

The lower part of this hole shows a strengthening grade profile:

• 15 m @ 1.57 g/t PGE3, 0.21% Ni, 0.13% Cu from 231 m to end of RC pre-collar

This upward trend in grade toward the base of the RC interval is a key detail, given that the diamond tail extends to 918.3 metres, providing a deeper test beneath this improving profile.

From an investor perspective, these higher-grade zones highlight the potential for both bulk-tonnage mineralisation and more concentrated higher-grade positions, both of which are being targeted in ongoing work.

Understanding PGE3, PGE7 and the Commodity Mix

What Is PGE3?

PGE3 is a shorthand measure that combines three precious metals:

• Platinum (Pt)
• Palladium (Pd)
• Gold (Au)

It is expressed in grams per tonne (g/t) and represents the sum of the grades of these three metals in a given sample interval. For instance, if a sample contains 0.4 g/t platinum, 0.3 g/t palladium and 0.2 g/t gold, the PGE3 grade would be 0.9 g/t. This metric allows quick comparison of precious metal content between different intercepts without listing each metal separately.

What Is PGE7 and Why Is It Mentioned?

The ASX announcement also refers to PGE7, which extends PGE3 to include four additional platinum group elements:

• Rhodium (Rh)
• Ruthenium (Ru)
• Osmium (Os)
• Iridium (Ir)

These are sometimes grouped as iridium-group PGEs (IPGEs) and are often present in smaller quantities but can be important due to their high value and diagnostic value for understanding the type of magmatic system.

Terra Metals Ltd reports that recent PGE7 assays at Southwest show significant enrichment in these IPGEs, which supports an interpretation of a high-temperature magmatic origin and a feeder-proximal system, meaning the mineralisation may be close to the original magma pathways.

Why Does the Commodity Mix Matter to Investors?

The Terra Metals Southwest PGM copper nickel discovery drill results consistently report combinations of:

• PGEs (PGE3, with PGE7 results in previous updates)
• Nickel (Ni)
• Copper (Cu)
• Cobalt (Co) in some intervals, when available

For investors, the presence of multiple metals in one system can be important because:

• Revenue in a future operation, if developed, could come from several products rather than a single metal.
• Exposure to different commodity cycles may help balance price volatility, depending on final project design and market conditions.
• The geochemical signature (for example, IPGE enrichment) can indicate the style and scale of the magmatic system being tested.

These factors are subject to further drilling, resource estimation and economic studies, however they form part of the geological rationale driving the current work programme.

Key Technical Terms Explained

Why Southwest Is a Distinct and Important Corridor Within Dante

The ASX announcement emphasises that Southwest is outside the existing 148 Mt Dante MRE and is interpreted as a new style of magmatic sulfide mineralisation relative to the previously defined stratiform magnetite-hosted reefs.

How Does Southwest Compare With Existing Dante Resources?

The current Dante MRE (August 2025) comprises:

These resources are hosted in relatively thin (roughly 5–9 metre) stratiform reef units. In contrast, at Southwest, the targeted ultramafic package is approximately 150 to >500 metres thick, and mineralisation is reported to occur across multiple mafic to ultramafic rock types, not confined to a single reef.

Multiple mineralisation styles are present, including:

• Stratiform reef-hosted mineralisation.
• Broad disseminated sulfide zones within ultramafic units.
• Feeder-style massive and semi-massive sulfide positions.

Terra Metals Ltd describes Southwest as a new mineralised corridor within the broader Jameson Layered Intrusion, with drilling to date defining a continuous, open sulfide system and numerous additional targets along strike and at depth.

Work Programme and Upcoming Catalysts

The announcement outlines an active multi-rig programme at Southwest, with a sequence of technical steps underway.

For investors monitoring Terra Metals Ltd, these steps define a series of potential news points, particularly the pending deep assays and any future formal resource definition at Southwest.

Geological Context Within the West Musgrave Region

The Dante Project is located in the Jameson Layered Intrusion, part of the wider Giles Intrusive Complex in Western Australia's West Musgrave region. The Giles Complex is a large mafic-ultramafic intrusive system, approximately 80 km long and 30 km wide under Terra Metals Ltd tenure.

The company notes that this intrusive style is comparable in setting to major global layered intrusions such as the Bushveld Complex in South Africa, which hosts multiple PGM, nickel, copper and chromite deposits and is estimated to contain about 2.2 billion ounces of PGMs.

Regional context also includes the Nebo-Babel Ni-Cu-Au-PGM deposit, historically described in the ASX announcement as one of the largest discoveries of its style prior to Julimar/Gonneville in 2020. Whilst such comparisons are geological and not economic, they provide context for why a thick, feeder-proximal sulfide system within this kind of intrusive complex is of interest to Terra Metals Ltd and sector participants.

Why This Update Matters for Investors in Terra Metals Ltd

From an investment perspective, the 1 July 2026 announcement highlights several important factors, particularly for those tracking the Terra Metals Southwest PGM copper nickel discovery drill results closely.

• Continuity across the 650 metre gap: The three RC pre-collars were deliberately spaced across a 650 metre gap between SW5 and SW6. According to Terra Metals Ltd, each hole intersected broad sulfide mineralisation and ended in mineralisation, which supports a continuous mineralised corridor rather than isolated lenses.

• System remains open and untested at depth: No reported RC pre-collar has drilled out of mineralisation, and diamond tails extend hundreds of metres deeper with assays pending. Consequently, the full vertical extent of the system is not yet known.

• New corridor outside existing 148 Mt MRE: Southwest is reported as a separate mineralised corridor from the current Dante MRE. If future work supports a maiden MRE at Southwest, this could add to the overall resource base of Terra Metals Ltd, subject to geological, technical and economic assessments.

• Multi-commodity exposure: The presence of PGEs, copper, nickel and cobalt, together with previously reported PGE7 enrichment, positions Southwest as a multi-commodity system. This mix may be relevant when considering potential project configurations and revenue balance in any future study phase.

• Active and data-rich programme: With multiple diamond rigs drilling, ongoing EM surveys, pending assays and planned resource drilling, Terra Metals Ltd is generating a steady flow of technical information that may refine the geological model and guide future exploration spend.

Key Takeaway

Terra Metals Ltd has reported thick PGM-Cu-Ni sulfide intercepts from RC pre-collars at the Southwest Discovery that:

• Confirm mineralisation continuity across a previously untested 650 metre gap.
• Demonstrate broad mineralised thicknesses of 76 to 194 metres in all three reported holes.
• Show higher-grade PGE3 zones within these broader envelopes.
• Remain open at depth, with diamond tails down to approximately 725–918 metres awaiting assay.

In summary, these Terra Metals Southwest PGM copper nickel discovery drill results support the interpretation of a large, continuous and open sulfide system in a new mineralised corridor outside the existing Dante MRE, with a maiden Southwest MRE targeted for late 2026 as drilling, geophysics and metallurgical work continue.

Want to Learn More About Terra Metals and the Dante Southwest Discovery?

With thick PGM-Cu-Ni intercepts confirming a continuous, open mineralised system outside the existing 148 Mt Dante MRE — and deep diamond tail assays still pending — Terra Metals Ltd (ASX: TM1) is shaping up as a compelling exploration story to watch. A maiden Southwest Mineral Resource Estimate is targeted for late 2026, with multiple potential catalysts between now and then. For investors looking to understand the full scope of the Dante Project and what Terra Metals has in the pipeline, visit terrametals.com.au to explore the company's projects, announcements and investment case in detail.