Terra Metals Limited (ASX: TM1) has just revealed that high-grade magmatic sulphide mineralisation has been confirmed in the initial three drill holes (out of 13) at Crius Reef , at the company’s flagship Dante Project. The mineralisation is sulphide-dominant, containing a combination of high-grade copper and precious metals, and hosted in stratiform “reefs” extending over 23 kilometres. This significant progress comes after receiving the Exploration Incentive Scheme (EIS) grant of AUD 435,000 from Western Australia’s Government.
Figure 1: Terra Metals Limited’s Project Location
Details of the Discovery
The discovery of high-grade magmatic sulphide mineralisation is positive news for Terra Metals Limited, as the discovered metals have significantly high market values. Copper, vanadium, platinum, gold, palladium, and titanium are all independently in high concentrations. Multiple stacked reefs have been identified, suggesting the possibility of replicated stratiform reef layers extending along the strike.
Discoveries of the first three holes at Crius Reef:
1.Hole URC003 intersected:
- 5 metres @ 0.56% copper (Cu), 0.53 grams per ton of platinum group elements (PGE3i), 0.61% vanadium pentoxide (V2O5), and 18.5% titanium dioxide (TiO2) from 80 metres depth
- This interval includes 2 metres @ 0.83% Cu, 0.52% V2O5, and 16.6% TiO2 from 80 metres depth
2.Hole URC002 intersected:
- 5 metres @ 0.30% Cu, 0.71 grams per ton PGE3, 0.71% V2O5, and 18.8% TiO2 from 43 metres depth
- This interval includes 3 metres @ 0.32% Cu, 1.02 grams per ton PGE3, 0.87% V2O5, and 21.9% TiO2 from 45 metres depth
3.Hole URC001 intersected:
Figure 3: Magmatic sulphide mineralisation in CRC003 at a depth of 80-81 metres, with a copper grade of 0.94%
These findings possess a bright future for the drilling programs at the Dante Project.
Some other characteristics were also found through the metallurgical tests of the first-week samples from the drilling program:
- The mineralisation discovered at Crius Reef exhibits a notable correlation to the characteristics of the 125 million ton Platreef platinum group elements-copper-nickel (PGE-Cu-Ni) deposit associated with Ivanhoe Mines, featuring high-grade by-products
- The initial drilling at the Cronus Prospect, comprising the first five holes, has confirmed the validity of the exploration model by revealing extensive shallow magmatic copper (Cu), gold (Au), and palladium (Pd) mineralisation. Further drilling is currently underway
- Terra Metals is actively progressing its well-funded, expansive 10,000-metre drilling campaign at the Dante Project
Assay results are pending for approximately 5,000 metres of drilling (30 out of 33 planned holes) targeting the reefs, with ongoing drilling activities. So, assay results are anticipated every few weeks over the next two to three months.
Mr Thomas Line, Managing Director & CEO of Terra Metals Limited, mentioned, “The first three drill holes at the Crius Reef confirm the presence of a high-grade polymetallic magmatic sulphide system. We have drilled 30 more drill holes covering a 10-kilometre outcropping strike at the Crius Reef and Hyperion Reef, and the Oceanus Reef remains to be drilled in the coming weeks. We have been drilling for almost two months now, and these results represent only the first weeks’ worth of drilling at the Dante Project. Our observations on the ground highlight the immense scale of the Crius Reef, the multiple developing copper opportunities at the Dante Project, and the similarities of the Dante Project to the Bushveld Complex, delivering a rare combination of grade, thickness, geometry and scale, with potential significant vanadium and titanium bi-product credits.”
Figure 4: About Terra Metals’ Dante Project
Terra Metals Limited acquired the Dante Cu-PGE-Au-Ni Project in October 2023. The Project is located in Western Australia’s West Musgrave region near BHP’s Nebo-Babel mine, which is emerging as a significant mining hub.
Figure 5: Dante Project Location
Features of the Dante Project
- It features extensive magmatic Cu-PGE-Au-Ni targets and PGE-Au Reef systems, with approximately 23 kilometres of exposed mineralised strike. This is one of the key reasons behind the Company’s decision to acquire the Dante Project
- The project has secured a Native Title Agreement with the Ngaanyatjarra Land Council and completed initial heritage surveys, paving the way for drilling. Terra Metals benefits from an extensive historical dataset, including airborne electromagnetic and magnetic surveys, over 3,000 auger drill holes, and various drilling programs. This strategic move positions Terra Metals to capitalise on the project’s significant potential
Recent Activities at the Dante Project
In March 2024, Terra Metals initiated its initial Phase 1 drilling campaign at the Dante Project, targeting approximately 10,000 metres of reverse circulation (RC) drilling. As of the announcement’s release date on May 13th, 2024, the Company has completed 45 drill holes under this program, which is excellent progress. The announcement released by the Company focuses on the first eight drill holes, consisting of 5 holes at Cronus and 3 at Crius. Assay results for the remaining 37 drill holes are awaited while drilling continues. Terra Metals has plans to execute an additional 16 drill holes, specifically targeting the Cronus magmatic copper-gold prospect and the Oceanus Reef.
About the Crius Reef’s Strong magmatic copper-sulphide mineralisation
The initial three drill holes at Crius Reef confirmed the presence of a polymetallic magmatic sulphide copper mineralisation. “Reefs,” like Crius Reef, are concentrated bands with mineralisation of important elements/metals like copper, gold, platinum, palladium, vanadium, titanium, and iron in high concentration. Among other lucrative features of Crius, geological observations in the Crius Reef have revealed nickel and cobalt anomalies. Furthermore, the stratiform reef layers of Crius extend along the strike and remain open, which is also good news for Terra Metals Limited. Ten more holes, covering 3 kilometres of strike, have been drilled, all intercepting reef material. Assay results for these holes are anticipated within the next 2-4 weeks from the announcement’s release date.
Figure 6: Cross-sectional view from the initial drill site at the Crius Reef
About Advancements at the Hyperion Reef and Cronus Prospects
An additional 7 kilometres of strike length has been explored through drilling at the Hyperion Reef, another significant reef in the Dante Project. The Company is hopeful about this reef as well. All drill holes across the 5 designated sections at Hyperion intersected the targeted reef along this extensive 7-kilometre stretch. However, the report from this reef needs to be included in the recently released announcement. The samples from these drill holes have been submitted to the laboratory for assay. The Company expects to release the reports about this reef in 8 weeks gradually.
The technical team conducts systematic shallow RC drilling at Cronus to characterise the intrusion for planned deep diamond drilling. Initial results from the first 5 holes confirm extensive low-grade copper, gold, and palladium mineralisation near the surface, supporting an extensive mineralised Cu-Au-Pd sulphide system at depth. The Cronus intrusion is the largest known mineralised magmatic sulphide intrusion in the West Musgrave region. Outstanding RC drilling results will guide deep diamond drilling targeting high-grade mineralisation. Government EIS co-funded grants of AUD 220,000 were awarded for deep drilling at Cronus post-RC results in June-July.
Figure 7: Future Exploration Plans
- Phase 1 RC drilling at Cronus aims to:
– Obtain geochemical profiles of the intrusion (characterisation)
– Confirm broad-scale copper, gold, and palladium mineralisation in shallow portions
– Identify targets for high-grade sulphide mineralisation within the magmatic conduit
– Inform upcoming deep diamond drilling co-funded by the WA government
- Phase 1 RC drilling at Crius, Hyperion, and Oceanus Reefs seeks to:
– Characterise the mineralisation
– Determine the position within the magmatic sulphide system
– Assess continuity and consistency of mineralisation along strike and down-dip
- The Company secured AUD 220,000 in government EIS funding for deep diamond drilling at Cronus following RC drilling results expected in June-July
- Geophysical programs, supported by AUD 215,000 in EIS funding, will commence in Q3 2024 to conduct a high-power electromagnetic (EM) survey for regional target generation
- The ongoing 3D inversion modelling of high-resolution magnetics will provide insights into Phase 2 drill planning
Terra Metals’ Market Outlook
- As of May 13th, 2024, Terra Metals Limited’s share price stood at AUD 0.05 per share, with a 52-week range of AUD 0.023 to AUD 0.069
- The market capitalisation of Terra Metals Limited is approximately AUD 17.74 million, with 295.78 million shares on issue as of May 13th, 2024
About The Company
Terra Metals Limited is a mineral exploration and development Company focusing on critical metals like copper, platinum group elements, gold, nickel, etc. The Company has robust projects with ongoing drilling programs in Western Australia, including the Dante Cu-PGE-Au-Ni Project, in the West Musgrave region and the Onslow Cu-Au Project in the Pilbara region.
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