Black Canyon Reports High-Grade Manganese and Iron Intersections at Wandanya Project; Beneficiation Testwork Validates Premium Concentrate Quality

Comprehensive Reverse Circulation Drilling Confirms High-Grade, Shallow Mineralisation Continuity

During the June quarter, Black Canyon executed an extensive reverse circulation drilling campaign totaling 17,200 metres over 640 holes at an average depth of 27 metres at Wandanya. The 3-kilometre base case mineralised footprint was drilled on a consistent 50-metre by 50-metre grid, while the eastern and northern extensions employed 100-metre or 200-metre line spacing with 50-metre hole centres. This drilling pattern is anticipated to support Indicated or Measured Mineral Resource Estimates suitable for scoping and feasibility studies. The program successfully delineated the mineral resource across the initial target area and tested extensions north and south of the main mineralisation zone.

Results have been highly encouraging, with mineralisation remaining open along the broader 9-kilometre system. Resource definition drilling over the initial 3-kilometre target is complete, while expansion drilling has tested mineralisation to the north and south. The full 9-kilometre system remains open for further exploration, with plans to drill the 1.4-kilometre southern and 2.8-kilometre northern extensions. Reverse circulation drilling is scheduled to resume in August 2026, underscoring the company’s commitment to systematic exploration of the broader project area.

Notable Manganese Intersections Highlight Premium-Grade Potential Across Wandanya

The June quarter drilling delivered multiple significant manganese intersections at Wandanya. Highlights include 6 metres at 31% manganese from 6 metres depth, including 2 metres at 45.5% manganese from 9 metres in hole WDRC338; 7 metres at 34.8% manganese from surface, including 4 metres at 44.3% manganese from 2 metres in hole WDRC291; and 8 metres at 34.1% manganese from surface, including 4 metres at 41.8% manganese from 4 metres in hole WDRC299. Additional strong results include 7 metres at 33.5% manganese from 1 metre depth, including 4 metres at 40.7% manganese from 3 metres in hole WDRC308, demonstrating consistent high-grade mineralisation across multiple drill holes.

The consistency and quality of these manganese results affirm the technical strength of the Wandanya project. Further significant intersections include 5 metres at 32.4% manganese from 5 metres depth, including 2 metres at 40.5% manganese from 8 metres in hole WDRC321, and 8 metres at 32.7% manganese from surface, including 4 metres at 36.1% manganese from 3 metres in hole WDRC292. The shallow mineralisation and high grades suggest potential for cost-effective extraction. Resource definition drilling has intersected high-grade iron and manganese mineralisation with prospects for direct ship ore products for both commodities, addressing multiple market opportunities from one asset.

Iron Mineralisation Results Enhance Direct Ship Ore Production Options at Wandanya

Complementing manganese results, the drilling program identified substantial iron mineralisation at Wandanya. Significant iron intercepts include 10 metres at 59.8% iron from surface, including 5 metres at 60.9% iron from 4 metres in hole WDRC285; 9 metres at 58.5% iron from 2 metres, including 3 metres at 62.5% iron from 6 metres in hole WDRC286; and 7 metres at 57.1% iron from 4 metres, including 3 metres at 62.6% iron from 6 metres in hole WDRC303. Additional strong iron results include 7 metres at 59.6% iron from 1 metre depth in hole WDRC314 and 6 metres at 56.2% iron from 2 metres, including 2 metres at 61.0% iron from 4 metres in hole WDRC329.

The high iron grades and shallow depths support potential direct ship ore products, enabling multiple revenue streams from Wandanya. The presence of both manganese and iron mineralisation suitable for direct ship ore extraction offers operational flexibility and market diversification. The shallow, high-grade mineralisation suggests economical extraction and processing potential. The dual commodity nature positions the company to capitalize on both materials, with an upcoming Scoping Study to evaluate a multi-product approach including direct ship ore iron, direct ship ore manganese, and beneficiated manganese products.

Beneficiation Testwork Validates Production of High-Grade Manganese Concentrates via Density-Based Methods

Black Canyon completed multiple beneficiation testwork stages confirming Wandanya manganese mineralisation can be upgraded using cost-effective density-based processing. Stage 2 heavy liquid separation tests on low, medium, and high-grade manganese oxide composites screened at 8 millimetres produced fine and coarse fractions. These underwent heavy liquid separation at a specific gravity of 2.80 g/cm³ to assess beneficiation characteristics and grade-recovery trends.

Stage 2 results yielded high-grade manganese oxide concentrates of approximately 40–50% manganese with recoveries of 87–91% from high and medium-grade feeds. Stage 3 testwork on blended composites consistently produced manganese grades above 40% with low deleterious elements and recoveries between 73% and 82%. Stage 4 pilot-scale dense media separation applied to blended composites further confirmed these outcomes. The concentrates approach or exceed the 44% manganese premium benchmark, demonstrating the quality of beneficiated manganese from Wandanya. This low-complexity beneficiation pathway offers a clear route to premium commercial products with potential pricing advantages in the manganese market.

Government Funding and Recognition Affirm Wandanya Project’s Technical Merit and Innovation

The Wandanya manganese and iron targets received up to $264,800 in co-funded geophysics and deep reverse circulation drilling funding under the Western Australian Government Exploration Incentive Scheme. This endorsement validates the project’s technical quality and regional scale potential. The co-funding reflects that Wandanya meets stringent criteria for technical merit and innovation as assessed by government-backed programs promoting mineral exploration in Western Australia.

This funding reduces financial pressure on Black Canyon for planned exploration, supporting geophysical surveys and drilling activities. It demonstrates confidence in the project’s technical direction and strengthens the company’s financial position to advance development. Independent government validation is significant for investors, confirming the project’s technical and commercial promise. The funding enables the company to allocate cash resources to other development tasks while maintaining exploration momentum.

Environmental and Heritage Surveys Completed to Facilitate Future Development

Black Canyon completed baseline environmental surveys at Wandanya to underpin forthcoming exploration and development. These include Autumn Flora and Vegetation surveys, Fauna surveys, and a Fourth Heritage Survey conducted during the period ahead of further exploration and water search drilling. These milestones are crucial for environmental and social approvals required for mineral project development in Western Australia. Heritage surveys are especially important given the need to engage Indigenous stakeholders and conduct heritage assessments.

The completion of these surveys demonstrates the company’s commitment to responsible development and stakeholder engagement. They position Wandanya to advance development approvals and feasibility studies with essential environmental baseline data and heritage assessments in place. The timing ahead of water search drilling is strategic, as securing water supply is vital for mineral processing and feasibility evaluations.

Robust Cash Position Supports Resource Estimation and Scoping Study Advancement

As of 30 June 2026, Black Canyon held $7.8 million in cash, providing a strong financial base for planned Wandanya exploration and development. This balance supports upcoming mineral resource estimation and a Scoping Study examining a dual commodity project approach. The company is well-funded to achieve these milestones without near-term capital raises, offering operational flexibility and avoiding shareholder dilution.

The capital structure at 30 June 2026 comprised 162.2 million shares and 8.0 million 14-cent options expiring 14 October 2026. The top 20 shareholders held 45%, board and management 8%, and funds and institutions 28%, reflecting a diversified shareholder base. The Managing Director emphasized the solid cash position aligns with the company’s funding trajectory and supports development progress. Combined with government co-funding, this positions Black Canyon to execute its planned programs in coming quarters without immediate capital requirements.

Upcoming Mineral Resource Estimation and Dual Commodity Scoping Study to Define Development Strategy

The next key milestone is the mineral resource estimation for Wandanya, expected next quarter. This will utilize the extensive 17,200-metre reverse circulation drilling data and meet standards suitable for a Scoping Study. The estimate will provide foundational data to assess the deposit’s economic potential and guide feasibility analysis. Achieving Indicated or Measured classifications based on the 50-metre grid in the base case and wider spacing in expansions will enable confident scoping-level evaluation.

Following resource estimation, Black Canyon plans a Scoping Study exploring a dual commodity project featuring direct ship ore iron, direct ship ore manganese, and beneficiated manganese products. This multi-product strategy reflects the deposit’s dual commodity nature and beneficiation results confirming premium-grade manganese concentrate production. The study will assess technical and economic feasibility to identify the optimal development pathway. The Managing Director highlighted the study’s focus on integrating both manganese and iron products into the development plan.

Market Outlook for Manganese and Iron Development in Australia’s Minerals Sector

Black Canyon advances Wandanya amid sustained global demand for manganese, essential in steelmaking and battery technologies. The company’s focus on high-grade direct ship ore and beneficiated manganese concentrates positions it to serve diverse manganese market segments. Producing premium-grade concentrates at 40–50% manganese via density-based beneficiation aligns with market preferences and potential pricing premiums. The iron mineralisation offers a secondary revenue stream, enhancing operational and financial flexibility.

Within Australia’s minerals sector, Black Canyon’s strategy is well-aligned. Australia is a major global producer of iron ore and manganese, with Western Australia hosting significant operations. The region’s established regulatory and operational frameworks support mineral extraction and processing. Completion of environmental and heritage surveys aligns with standard development requirements. The government’s Exploration Incentive Scheme co-funding reflects strong institutional support for exploration. The company’s emphasis on shallow, high-grade mineralisation and cost-effective beneficiation meets economic criteria for sustainable mineral projects in today’s global market.