Terra Metals Limited (ASX:TM1) has successfully transitioned its Southwest Discovery at the Dante project in Western Australia from an exploration-focused program to a systematic resource delineation phase. Recent drilling activities, including both diamond and reverse circulation methods, have significantly expanded the known mineralised corridor. The system now extends across more than 950 metres of strike, 700 metres in width, and 750 metres down dip, with the entire structure remaining open in all directions.

Operational efforts during the June quarter were highlighted by the confirmation of exceptional mineralised thickness. Specifically, diamond drilling returned an interval of 448 metres of continuous palladium-platinum-nickel-copper mineralisation, marking the thickest intercept identified at the site to date. This consistency across the principal drill holes, combined with downhole electromagnetic survey data, has provided the technical confidence to treat the discovery as a singular, laterally extensive layered magmatic sulphide system. The presence of internal, higher-grade reefs suggests the potential for future selective mining scenarios, adding a layer of operational optionality to the project’s development profile.

Five drill rigs were deployed throughout the quarter to accelerate these resource definition activities. Geophysical targeting via downhole electromagnetic surveys remained a primary driver of success, with conductive anomalies consistently correlating with the presence of massive and semi-massive sulphides. These results directly facilitate the ongoing work towards the release of a maiden Southwest Mineral Resource Estimate, which stands as the key upcoming catalyst for the company.

Financially, the explorer remains well-positioned to support its aggressive work program. During the quarter, shareholders approved the second tranche of a capital placement, providing approximately $20.8 million in additional funding. This infusion of capital bolsters the company’s treasury, allowing for the continuation of large-scale drilling and geophysical surveys without liquidity constraints. Terra Metals concluded the June quarter with a cash balance of $75.1 million, ensuring the project remains fully funded for its current development cycle.

The corporate structure also saw recent adjustments, with several appointments to the Board and executive leadership team to support the next stage of advancement. These changes, alongside the recent inclusion in the MSCI Australia Micro Cap Index, coincide with the company’s move into more structured resource estimation. By formalising its technical approach and maintaining a strong cash position, the company is preparing the foundation for its next major reporting milestone. The focus remains on maintaining the current drilling momentum across the Southwest corridor while geological teams refine the modelling required for the upcoming maiden resource calculation. As exploration efforts continue to move from initial discovery into rigorous definition, the project continues to demonstrate the scalability required to support long-term development objectives. With rigs active and funding secured, the path toward quantifying the scale of the Southwest discovery is clearly defined by the successful intersection of wide, consistent mineralised zones that have been confirmed through consecutive drilling campaigns since the original identification of the system.

Read the full announcement: June 2026 Quarterly Report