Terra Metals Limited (ASX: TM1) (“Terra Metals” or “the Company”) has delivered a significant breakthrough at the Dante Reefs. Phase 1 metallurgical testwork confirms the potential to produce three high-grade concentrates using simple, low-cost processing methods. These results underscore Dante’s ability to be a globally competitive source of valuable metals.
Dante Reefs: A Promising Source of High-Value Metals
The latest testwork has validated Dante’s potential to produce high-grade copper-gold-PGM, vanadium-magnetite, and titanium-ilmenite concentrates. These results highlight the project’s economic viability and attractiveness to global markets.
Figure 1: Location of the Dante Project
Managing Director and CEO, Mr Thomas Line, stated:
“This is a major milestone in the project’s development. The metallurgical results demonstrate the economic potential of the project, highlighting the potential for the Dante Reefs to produce copper, gold, platinum, titanium, and vanadium products.”
Three High-Grade Concentrates Produced
The testwork focused on representative composite samples from diamond drilling at Dante Reefs. It successfully produced three separate, high-grade concentrates:
1. High-Grade Cu-Au-PGM Sulphide Concentrate
- Concentrate Grade: 28.0% Cu, 17g/t Au, 21.4g/t PGM
- Metal Recoveries: Cu: 95.8%, Au: 75.8%, PGM: 74.4%
The high copper and precious metal recoveries confirm Dante’s potential as a globally competitive source of Cu-Au-PGM concentrate.
2. High-Grade Vanadium-Magnetite Concentrate
- Vanadium Content: 1.81% V₂O₅
- Vanadium Recovery: 90.9%
This grade exceeds those achieved by leading ASX-listed vanadium projects, demonstrating Dante’s ability to compete in the vanadium market. The concentrate is suitable for producing high-purity vanadium pentoxide flake, a key product for steelmaking and battery applications.
3. High-Purity Titanium-Ilmenite Concentrate
- Titanium Content: 40% TiO₂
- Titanium Recovery: 65.6%
Dante’s ilmenite concentrate grades exceed those produced by major hard-rock ilmenite producers. This strengthens its potential to supply high-value titanium products for industrial and commercial applications.
Principal Metallurgist, Dr Evan Kirby, noted:
“These preliminary results are extremely encouraging and suggest the Dante Reefs has potential to produce multiple commercial concentrate products using low-cost and simple processing techniques. The mineralogy has favourable properties compared to some other known deposits in production.”
Low-Cost Processing Enhances Economic Viability
The testwork used simple and efficient processing techniques, including magnetic separation and flotation, to achieve outstanding metal recoveries. These methods reduce operational costs and improve the economic outlook for the project.
Dr Kirby highlighted the significance of these results:
“The initial results demonstrate a potential pathway to produce a high-grade saleable copper-precious metal sulphide concentrate, a high-grade vanadium concentrate suitable for producing high-purity vanadium pentoxide flake, and a high-quality commercial titanium-ilmenite concentrate, using simple and low-cost processing methods.”
Phase 2 Testwork to Optimise Processing
The Company will proceed with Phase 2 metallurgical testwork to refine processing parameters, improve concentrate grades, and enhance metal recoveries.
Mr Line reiterated Terra’s strategic approach:
“We have systematically approached the development and assessment of the Dante Reefs since the initial discovery was made last year. We will continue our systematic development of the deposit, including Phase 2 optimisation testwork and delineation of a maiden resource.”
Dante Reefs: A Globally Significant Project in the Making
Dante Reefs has already demonstrated the scale and quality required to be a globally significant source of multiple high-value metals. The next steps will further de-risk the project and pave the way for commercial production.
Mr Line concluded:
“Given the large amount of work undertaken last year, we believe we can achieve these next major milestones cost-effectively with modest further investment.”
Terra Metals is poised to strengthen its position as a key player in the critical metals sector. With ongoing testwork and resource definition in progress, Dante Reefs continues to emerge as a world-class project.
Future Prospect
Insights from the Recent Webinar
Terra Metals Limited is well-positioned to advance the Dante Project with minimal additional investment, capitalising on the extensive groundwork undertaken over the past year. The Company has already commenced Phase 2 optimisation metallurgical testwork and has initiated a review for a potential maiden resource estimate.
In a recent webinar, Principal Metallurgist Dr Evan Kirby highlighted the potential to further enhance the project’s value. He stated:
“This first test has produced 40% ilmenite concentrate just by magnetic fractionation. There’s a very good chance we’ll reach 46%, which is a salable grade. If not, we can use the same flotation processes employed in China and Brazil to upgrade this to a super-grade salable ilmenite concentrate.”
This promising outlook strengthens Dante’s commercial potential, positioning it as a competitive source of high-quality titanium products.
Managing Director and CEO Mr Thomas Line reinforced the project’s strong financial standing, commenting:
“We’re in a very good position to undertake our optimisation metallurgical test work and report on delineating a maiden resource without any further material or major investment. As I said, this is a result of the work undertaken last year.
We’re now well-positioned to reap the rewards of our previous investment and the large programs we executed. We believe we will gain significant value from that this year without requiring further material investment.
We have already started reviewing a potential maiden resource and look forward to providing an update soon. Additionally, we have begun our phase two optimisation test work.”
Strong Geological Potential
Terra Metals’ discovery of large Bushveld-style Cu-PGE sulphide reefs at Dante in June 2024 confirmed the project’s significant scale and prospectivity. Drilling results suggest that the Dante Reefs could host a major sulphide deposit containing copper, gold, platinum group elements (PGEs), vanadium, and titanium—the first of its kind in Australia.
Key geological highlights of the Dante Project include:
- Regional Scale: Large magmatic Cu-Au-PGE-V₂O₅-TiO₂ targets with extensive outcropping mineralised PGE + Au reef systems.
- Compelling Geochemistry: Auger geochemistry indicates widespread Cu-Au-PGE-Ni anomalism over multiple kilometres.
- Exciting Geology: Mafic-ultramafic layered intrusion within the highly prospective Giles Complex.
- Strategic Location: Just 15km from BHP’s $1.7 billion Nebo-Babel Cu-Au-PGE-Ni mine development.
Investor’s Outlook
Strong Market Response to Dante Reefs Announcement
Terra Metals Limited (ASX: TM1) has experienced a 14.999% increase in its share price following the announcement of successful Phase 1 metallurgical testwork at the Dante Reefs. The stock is now trading at $0.023, reflecting strong investor confidence in the project’s potential.
Market Capitalisation and Performance
With a market capitalisation of $8.15 million, Terra Metals remains a promising small-cap Company. The stock has gained 21.05% over the past week, indicating growing investor interest as the project advances.
Stock Volatility and Growth Potential
Over the last 52 weeks, Terra Metals has traded between $0.018 and $0.105, highlighting both its volatility and potential upside. With 407.6 million shares on issue, the Company remains relatively small but has room for significant growth as it progresses towards commercial production.
Key Milestones to Watch
Investors will closely monitor the upcoming Phase 2 metallurgical testwork and the delineation of a maiden resource. Successful outcomes could further enhance the project’s economic viability and drive additional value for shareholders.
