Terra Metals Limited (ASX: TM1) (“Terra” or “Company”) announced the successful completion of the maiden reverse circulation (RC) drilling program at the Dante Cu- Au-PGE-Ni project. The program consisted of 60 strategically placed drill holes, totalling 10,220 m, distributed across four regional targets: Crius Reef, Hyperion Reef, Oceanus Reef, and Cronus Prospect.
Assays from the first three drill holes at Crius Reef confirmed the presence of high-grade magmatic sulphides, including PGE. Assays from 52 drill holes at approximately 8,500m will be available in the following weeks.
Figure 1: Dante Cu-Au-PGE-Ni Project – Plan View of Drilling Completion
Additional mapping and ground-truthing identified three new outcropping reefs in proximity to the existing ones: the Typhon Reef (10km), Helios Reef (6km), and Pytho Reef (3km). Hence, the strike length has been extended by 80% to 42km.
Highlights of Dante Project RC Drilling Results:
Terra has received assays for five holes at the Cronus Prospect and three at the Crius Reef. The initial results from the first three out of 13 completed holes at Cirius Reef include:
- 5m @ 0.56% Cu, 0.53 g/t PGE3, 0.61% V2O5, and 18.5% TiO2 from 80m
- Including 2m @0.83% Cu, 0.52% V2O5, and 16.6% TiO2 from 80m
- 5m @ 0.30% Cu, 0.71 g/t PGE3, 0.71% V2O5, and 18.8% TiO2 from 43m
- Including 3m @0.32% Cu, 1.02 g/t PGE3, 0.87% V2O5, and 21.9% TiO2 from 45m
- 2m @ 1.17 g/t PGE3, 1.04% V2O5, and 18.9% TiO2 from 23m
Additionally, initial results from the first five holes at Cronus Prospect confirmed the presence of extensive magmatic copper, gold, and palladium sulphide mineralisation from near the surface.
Future Work at the Dante Project:
The Company will now refine Phase 2 magmatic Cu-Au-PGE sulphide targets. Phase 2 drill targets will include:
- Strike extensional and infill drilling, as defined during Phase 1 RC drilling, of stratiform magmatic Cu-Au-PGE sulphide mineralisation
- New stratiform magmatic sulphide targets, as defined from reconnaissance mapping & sampling, and surface geochemistry & geophysical modelling
- Electromagnetic magmatic sulphide targets that include both stratiform and chonolithic styles
Copper, gold, platinum, palladium, and nickel are considered ‘critical minerals’ and crucial for the global transition towards clean energy. The demand for battery metals is driven by electric vehicles (EVs). According to research, global sales of EVs are forecasted to touch about 73 million units in 2040, from 40 million units in 2023. Such a vast demand offers immense opportunities for growth for metals and minerals exploration Companies.
Figure 2: Global Electric Vehicles Sales Forecast 2040
Moreover, in Australia, the Government, in its Critical Mineral Strategy 2024-2030, has committed USD 3.9 billion to accelerate the strategically significant projects and strengthen the country’s critical mineral security and supply chains.
Terra Metals Limited is a critical metals exploration and development Company in Western Australia. It mainly focuses on developing metal resources that align with the world’s green energy transition. The Company owns two strategic projects in Western Australia:
Dante Cu-PGE-Au-Ni Project
Figure 3: The Dante Project Location Map
The Dante project in West Musgrave contains large-scale magmatic Cu-PGE-Au-Ni and PGE-Au reef targets. This region is an emerging mining hub in WA and consists of one of the most critical global clusters of mafic-ultramafic layered intrusions. This mafic layered intrusion, called the Giles Complex, comprises proven PGE reefs that are popularly compared to the Bushveld Reef Complex in South Africa. The Bushveld Complex is estimated to contain 2.2 billion ounces of PGE and Au, making it a critical, large-scale global source of PGE.
Moreover, the Dante project is located near BHP’s AUD 1.7 billion Nebo-Babel project, one of the most significant mining developments in the world. BHP’s Ni-Cu-PGE project is located 15km to the south and hence provides logistics benefits to the Dante project.
The Bushveld Complex, South Africa
Figure 4: Bushveld Complex, South Africa
The Bushveld Igneous Complex is the world’s most considerable layered intrusion owned by the Company. It contains the world’s most prominent Pt group elements, chromium, titanium and vanadium reserves. It contains 75% of the world’s Pt reserves and 50% of global Pd reserves. The Complex is known for its chromitite reef deposits, the Merensky and UG-2 reefs. Lithologies are variable but are primarily ultramatic chromitite, peridotite, harzburgite and bronzitite in the lower sections to matic norite, gabbro, and anorthosite toward the top.
Mr Thomas Line, Managing Director and CEO of Terra Metals Limited stated, “We are pleased to have completed our maiden 10,220m drilling program at the Dante Cu-Au-PGE-Ni Project. The first 8 holes confirmed the presence of magmatic copper-gold-PGE sulphides at the Crius Reef and Cronus Prospect. Assays are pending for the remaining 52 holes, and we look forward to reporting the remaining results as they become available.
The field team has already transitioned to on-ground reconnaissance and is preparing the next round of infill and extensional drill targets. We have already increased the strike of Dante Reefs by 19km, and we anticipate the definition of further magmatic sulphide targets to follow.”
Investor’s Outlook and Market Position
Mr Thomas’ expertise in critical mineral exploration makes him a valuable leader in the company’s growth. His vast experience in mining project planning and management adds a wide array of capabilities to the Company as it swiftly progresses with its Dante, Onslow, and Bushveld Projects. He understands the global demand for critical minerals and has been strategically pushing towards positioning the Company in the international emerging markets for EVs. With ample support from the WA government regarding favourable policies, the Company is anticipated to become a key producer and exporter of Cu, PGE, Au & Ni in the global market. As of June 4th, 2024, Terra Metals Limited’s share price was traded at AUD 0.044, and a 52-week range was AUD 0.028 to AUD 0.069. The Company’s market capitalisation was AUD 12.42 million, with 295.7 million shares on issue as of the same date.
