Black Canyon’s Wandanya Project Delivers High-Grade Manganese and Iron Results

Black Canyon's Wandanya Project Keeps Delivering: High-Grade Mn and Fe Results Extend Mineralisation Footprint

Black Canyon Limited (ASX: BCA) has reported a second batch of assay results from resource definition drilling at its 100%-owned Wandanya Project in Western Australia. The latest drilling continues to return shallow high-grade manganese and iron mineralisation across the central part of the discovery. Expansion drilling has also extended the manganese horizon 400 metres south of the existing 3km base case target, while mineralisation remains open for a further 1.4km to the south.

The update matters because it adds to both grade confidence and project scale ahead of a maiden Mineral Resource Estimate (MRE) targeted for Q3 2026 and a Scoping Study scheduled for Q4 2026. Black Canyon also confirmed that drilling to the north encountered manganese and iron mineralisation up to 200m and 500m respectively beyond the current 3km target area.

Drilling Confirms Grade Continuity and Growing Scale

The latest assay batch covered 223 RC drill holes from WDRC441 to WDRC663 for a total of 6,802 metres, with an average hole depth of 30 metres. That shallow depth profile is a key feature of Wandanya, as it indicates the mineralisation sits close to surface.

Black Canyon has now completed approximately 17,200 metres of RC drilling across 644 holes at Wandanya. Across the combined resource definition and expansion programmes, 4.8km of the 9km long mineralised system has now been tested.

Furthermore, drill spacing in the northern and central parts of the 3km base case target has been tightened to a regular 50m x 50m grid. This spacing is expected to be suitable for Indicated or Measured resource classifications under JORC 2012, which is relevant because higher-confidence resource categories can support later-stage technical studies.

What Does This Mean for Investors?

For investors, the combination of tighter drill spacing and repeat high-grade intersections is important. It suggests the company is moving beyond early discovery-style drilling and towards data density that may support formal resource modelling.

"I never get tired of looking at high grade manganese and iron intersects from Wandanya and these assay results continue to impress. The continuity and scale of the manganese and iron mineralisation is further confirmed particularly in the central section of the 3km long base case target."

— Brendan Cummins, Managing Director, Black Canyon Limited

Manganese Results Highlight Thick Shallow Mineralisation

The central part of Wandanya continues to deliver the strongest manganese results. In the report, many intersections begin at surface or within only a few metres, which could be favourable when the project advances to mining studies.

Selected manganese results from this release:

Black Canyon stated that the footwall of the mineralised horizon is strongly enriched, with some single metre intervals grading above 50% Mn. In simple terms, the footwall is the rock beneath the main mineralised layer, and stronger grades in that zone can help geologists understand where the highest-value material is concentrated.

The report also noted that down-dip manganese intersections support cross-strike widths of approximately 500m to 650m, with more assays still pending from deeper holes drilled to the east. The higher-grade shallow zone is associated with manganese oxide, while further east the mineralisation transitions to manganese carbonate at depths of around 20m to 25m.

That geological transition matters because oxide and carbonate material can behave differently in processing. However, it does not determine project economics on its own, and it will be assessed through further metallurgical work and future studies.

Iron Results Add a Second High-Grade Commodity Stream

Wandanya is also producing high-grade iron results alongside manganese. According to the report, the iron mineralisation is dominated by hematite and has returned thick intervals from surface across the central target area.

Selected iron results from this release:

The company reported cross-strike widths of 150m to 350m along 1.3km of iron mineralisation delineated within the 3km base case target. It also referenced previous drop tower testwork that produced a 74% lump product grading 59.7% Fe.

For investors, the presence of both manganese and iron at potentially saleable grades may broaden future development options. A dual-commodity project can sometimes offer more flexibility in mine planning and revenue mix, although this would need to be confirmed by later-stage studies.

What Is Direct Ship Ore and Why Do Investors Watch It Closely?

The ASX announcement states that both the manganese and iron mineralisation at Wandanya demonstrate Direct Ship Ore (DSO) potential. This is a widely used mining term, and it is worth explaining clearly.

Direct Ship Ore (DSO) refers to ore that may be mined and shipped with limited processing, rather than requiring large and complex treatment plants before sale. In practical terms, DSO material may reduce capital intensity because less processing infrastructure might be required.

It can also reduce operating costs if the ore can be sold after only simple crushing, screening or sorting. However, whether a project becomes a DSO operation depends on several factors, including:

• Grade and impurity levels
• Product size and metallurgical performance
• Transport costs and logistics
• Customer product specifications

At Wandanya, many manganese intersections in the central zone fall broadly within or above the 30% to 40% Mn range often associated with DSO-style manganese products. On the iron side, many reported results sit in the 58% to 62% Fe range commonly associated with higher-value iron ore products.

This does not confirm a final product specification or development pathway. However, it helps explain why the company is emphasising the potential economic significance of the shallow high-grade results.

Key Mining Terms in the Wandanya Update Explained

For readers less familiar with exploration reporting, several technical terms in the update are central to understanding the project.

What Is RC Drilling?

RC drilling stands for Reverse Circulation drilling. This method uses a drill rig to break rock and bring small chips back to surface. It is commonly used in resource drilling because it is relatively fast and suitable for defining shallow mineralisation.

What Is a Mineral Resource Estimate?

A Mineral Resource Estimate (MRE) is a formal estimate of how much mineralisation is present and at what grade. It is prepared under reporting standards such as JORC 2012 and classified into categories such as Inferred, Indicated and Measured, depending on the confidence level.

What Does Stratiform Mineralisation Mean?

Stratiform or stratabound mineralisation means the mineralised zone follows layers in the host rocks. In simple terms, the ore sits within a geological layer rather than occurring as a narrow, randomly oriented vein. This can support continuity across larger areas if drilling confirms the same layer persists.

Furthermore, cross-strike width describes how wide the mineralised zone is across its main geological trend. Wider zones can be relevant when considering future mining scenarios, especially if grades remain consistent across the width.

Expansion Drilling Points to a Larger Mineralised System

Beyond the core 3km target, the expansion story is becoming increasingly material. In the southern expansion area, Black Canyon confirmed that drilling has extended manganese mineralisation 400m south of the current base case target.

Holes WDRC915 and WDRC927 visually intersected manganese oxide hosted in weathered dolomite and calcareous sediments. Visual estimates included 6m of manganese oxide from 2m in WDRC915 and 4m from 6m in WDRC927, although visual estimates are not a substitute for laboratory assays. Final assays for those holes are expected in the next 4 to 6 weeks.

Further south, rock chip sampling over an additional 1.4km returned grades of 58.3% Mn, 52.6% Mn, 66.0% Fe and 66.3% Fe. Follow-up RC drilling is planned after completed heritage surveys and with an approved Programme of Work in place.

To the north, expansion drilling encountered manganese up to 200m beyond the base case area and iron up to 500m north. The company also identified a 2.8km iron-enriched ridge that remains to be drill tested.

Together, these results suggest the currently drilled 3km target may represent only part of the broader mineralised system.

Next Catalysts Leading into the Maiden Resource

The near-term news flow remains active. Black Canyon stated there are approximately 7,200 samples still at the laboratory, with results expected over the next 4 to 6 weeks from holes WDRC664 to WDRC929.

Upcoming project milestones:

The company is also collecting inputs for the maiden MRE, including LIDAR, DGPS collar pickups and down-hole density surveys. These are standard technical inputs used to improve the accuracy of geological and resource models.

Why Investors May Continue to Follow Wandanya

The latest report reinforces several points that are likely to remain central to the investment case. First, Wandanya continues to return high-grade shallow manganese and iron across a growing footprint. Second, drilling density in key areas is now moving toward a level that may support higher-confidence resource categories.

In addition, expansion drilling has added evidence that the mineralised system extends well beyond the initial 3km area. Black Canyon also holds a broader regional position, with a previously announced Global Mineral Resource of 315Mt @ 10.5% Mn across its Balfour Manganese Field projects and more than 2,000km² of tenure in the Balfour Manganese Field and Oakover Basin.

Wandanya sits within that broader corporate context. However, the current market focus is likely to remain on whether the project can convert drill success into a meaningful maiden resource and an initial development case. Over the next two quarters, that question should become clearer, as pending assays, further expansion drilling, the Q3 2026 maiden MRE and the Q4 2026 Scoping Study each have the potential to shape how the market assesses Wandanya's scale, grade and development pathway.

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