Terra Metals Confirms PGM-Cu-Ni Extension at Dante’s Southwest Discovery

Terra Metals Confirms Extension of PGM-Cu-Ni Mineralisation at Southwest

Terra Metals Limited (ASX: TM1) has reported new assay results from diamond-tail drilling at the Southwest Discovery within the Dante Project in Western Australia. The latest holes reinforce the scale, continuity and depth potential of the Southwest Main Sulfide Corridor. According to the ASX announcement, holes SWRD057, SWRD055 and SWDD018 returned broad platinum group metal, copper and nickel mineralisation across multiple intervals, while also extending the known system along strike and to the north.

The update matters because Southwest sits outside Terra Metals' existing 148 Mt Dante Reefs Mineral Resource, making it a separate growth target rather than a simple extension of the current resource base. With more than 56,000 metres of drilling completed across Dante and approximately 32,000 metres of assay results still pending, the company has flagged a large pipeline of near-term newsflow as it works towards a maiden Mineral Resource Estimate (MRE) at Southwest.

What Do the Latest Drill Results Show?

The latest drilling results add weight to Terra Metals' interpretation that Southwest hosts a broad mineralised system rather than a single narrow reef. The company described broad mineralised packages containing multiple higher-grade reef intervals over a tested strike extent of 1,100 metres.

The three reported holes each contributed different pieces to that interpretation. Two holes, SWRD057 and SWRD055, expanded confidence in thickness, internal grade distribution and vertical continuity. SWDD018, meanwhile, supported the view that mineralisation continues north of the currently defined corridor.

SWRD057: Does It Extend Mineralisation and Confirm High-Grade Reefs at Depth?

SWRD057 was the strongest result in the release. Terra Metals reported more than 392 metres of combined PGM-Cu-Ni mineralisation across several intervals, with mineralisation continuing to beyond 600 metres downhole.

The importance of SWRD057 is not just the headline interval length. The hole contains several internal higher-grade zones, which Terra Metals interprets as stacked reef positions inside a much broader mineralised package.

For investors, that mix of bulk width and local higher-grade zones can be important because it may support both tonnage and grade optionality as the project advances.

SWRD055: Confirming Thick Mineralisation Beyond the RC Pre-Collar

SWRD055 also returned broad mineralisation, with Terra Metals reporting approximately 329 metres of combined PGM-Cu-Ni mineralisation across three main intervals. The hole extended well beyond previously reported reverse circulation pre-collar results and, furthermore, confirmed multiple higher-grade reefs within a thick package.

In practical terms, SWRD055 supports the same general theme as SWRD057. Southwest appears to host repeated mineralised horizons through a substantial vertical section, rather than one isolated high-grade layer.

SWDD018: Supporting Northward Continuation

SWDD018 is important because of its location. According to Terra Metals, the hole supports the interpretation that mineralisation continues to the north, returning approximately 168 metres of combined mineralisation across four principal intervals from 205.4 metres.

The copper-rich interval in SWDD018 stands out because it may add support to Terra Metals' targeting of feeder-style sulphide mineralisation across the broader system. However, at this stage, that remains part of the company's geological interpretation and will require more drilling and geophysical follow-up.

"These diamond tail results provide further evidence of the scale and continuity of the PGM system we are defining at Southwest," said Thomas Line, CEO and Managing Director. "Our focus is now firmly on converting this expanding mineralised system into a maiden Mineral Resource Estimate, supported by an intensive drilling campaign with five rigs currently operating."

Understanding 3E, Reefs and Why These Grades Matter

For investors less familiar with platinum group metal exploration, the main reporting term in this update is 3E. This refers to the combined grade of platinum, palladium and gold, expressed in grams per tonne (g/t). In polymetallic PGM deposits, reporting one combined precious metal figure gives a quick view of the value concentration in the rock.

A few other terms in the announcement are worth clarifying:

• Reef: a discrete mineralised layer, often carrying higher grades than the surrounding rock.
• Strike: the horizontal length of a mineralised zone.
• Down-dip: the direction the mineralised zone continues deeper underground.
• Mafic-ultramafic rocks: magnesium- and iron-rich rock types that commonly host nickel, copper and platinum group mineralisation.
• Magmatic sulphide mineralisation: sulphide minerals formed from cooling magma, often carrying nickel, copper, cobalt and PGMs.

From an investment perspective, broad intervals with consistent grade can indicate potential for large tonnage, while internal higher-grade reefs may improve the quality of a future resource. In addition, the presence of copper, nickel and cobalt alongside PGMs can matter, because associated metals may contribute additional value if recoverable through processing.

Why Is Southwest Different From the Existing Dante Resource?

In the announcement, Terra Metals drew a clear distinction between the Southwest Discovery and the existing Dante Reefs MRE. Southwest is described as a separate mineralised corridor outside the current resource, with mineralisation spread across multiple mafic to ultramafic units rather than being limited to one stratiform reef package.

That distinction matters because it suggests Southwest could add a separate resource inventory if drilling continues to support continuity and scale. According to the company, drilling completed so far has defined the system over:

• More than 1,100 metres of strike
• Approximately 700 metres in width
• Up to 448 metres of continuous downhole thickness
• At least 750 metres down-dip from surface

Terra Metals also stated that all reported infill and extensional holes to date have intersected sulphide mineralisation. While this does not guarantee future drilling outcomes, it does suggest a high hit rate within the areas tested so far.

Geologically, the company describes Southwest as hosting several styles of mineralisation, including disseminated sulphides, net-textured sulphides and higher-grade feeder-style massive to semi-massive sulphide accumulations. In simpler terms, this means the system may contain both widespread lower-grade mineralisation and more concentrated sulphide zones within the same corridor.

Pending Assays and the Path to a Maiden Resource

One of the most relevant parts of the update for market watchers is the amount of drilling still to be reported. Terra Metals confirmed that of more than 56,000 metres drilled at Dante, less than 24,000 metres has been reported, leaving approximately 32,000 metres of completed drilling with assay results pending.

That backlog creates a sizeable flow of expected updates over coming months. Furthermore, the company outlined the next main workstreams at Southwest:

1. Continued diamond drilling along strike and at depth
2. Receipt and interpretation of assays from deep diamond tails, including holes up to 918 metres
3. Ground and downhole electromagnetic surveys to identify conductive sulphide bodies
4. Structural interpretation using downhole televiewer data
5. Heritage surveys to expand drill access
6. Regional exploration across the broader Dante Project
7. Metallurgical test work and flowsheet development

The stated aim is to support a maiden Southwest MRE in late 2026. As with all forward-looking project timelines, that target remains dependent on drilling progress, assay turnaround and ongoing technical work.

Barry Jones, General Manager Exploration and Operations, said the latest drilling "continue[s] to demonstrate that the Southwest discovery is growing with each round of assays" and that the consistency of mineralisation continues to support the company's geological model.

The Broader Dante Project Context

Southwest sits within the Dante Project in the West Musgrave region of Western Australia, hosted in the Jameson Layered Intrusion, part of the larger Giles Complex. Terra Metals holds 100% owned tenure covering approximately 80 kilometres of this intrusive system.

The company already has an existing 148 Mt Dante Mineral Resource, comprising three shallow-dipping stratiform magnetite reef deposits across 12.6 kilometres of strike. Those reefs contain copper, PGEs, titanium and vanadium mineralisation, with most mineralisation starting from surface and extending to around 250 metres depth.

Southwest is therefore part of a broader district-scale land position, but it is being advanced as a distinct mineralised system. That separation is relevant because success at Southwest could add to the project's overall scale rather than simply reclassify already defined mineralisation.

Why Do Platinum Group Metals Remain Relevant?

The ASX announcement also included a broader discussion of platinum group metals (PGMs) and their industrial importance. Platinum and palladium are widely used in automotive catalytic converters, where they help reduce harmful exhaust emissions from internal combustion engines.

That demand remains relevant even as vehicle powertrains change. Hybrid and plug-in hybrid vehicles still require catalytic systems, and in some cases PGM loadings may remain important because of operating conditions such as lower exhaust temperatures and frequent engine start-stop cycles.

Beyond autos, platinum has applications in hydrogen fuel cells and electrolysers, while palladium can be used in hydrogen purification and separation. Terra Metals also noted that platinum group elements are recognised by the Australian Government as critical minerals, with similar recognition existing across several international jurisdictions.

Investment Relevance

The latest Southwest drilling results strengthen several points that investors typically watch in early-stage resource growth stories.

First, the reported holes continue to support scale and continuity across a growing mineralised corridor. Second, the system appears to host multiple mineralised styles and stacked higher-grade reefs, which may become important in future resource modelling. Third, Terra Metals has a substantial pipeline of pending assays, giving the market additional near-term drilling catalysts.

Finally, Southwest is being advanced alongside an existing 148 Mt resource base at Dante. That combination means investors are not only watching an isolated exploration target, but also a project area where a separate new mineralised system is being tested for resource potential.

On the current information, the key question is straightforward: can continuing drilling convert geological scale into a formal maiden resource? According to Terra Metals' latest update, that is now the central objective for Southwest through late 2026.

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