Terra Metals Hits 194m at 1.01g/t PGE3 From 15m in Southwest Drilling
Key Takeaways
- SWRC106 returned 194m at 1.01g/t 3E and 0.17% Ni from just 15m, with 9m at 3.53g/t PGE3 inside it.
- 16 of 35 newly assayed holes intersected broad PGM–Cu–Ni sulfide zones, and SWRC105 delivered 200m at 0.75g/t from surface.
- More than 40,000m of drilling awaits assays with five rigs running, setting up a heavy run of results through 2026.
- The maiden Mineral Resource Estimate is targeted for Q1 CY2027, with a scoping study to follow and no date given.
- Near-surface Pt:Pd ratios close to 1:1 differ from the palladium-dominant reefs at depth, while regional Dante results at Tethys and Titan were modest.
Southwest drilling hits high-grade PGM mineralisation from surface
Terra Metals (ASX: TM1) has reported shallow reverse circulation (RC) drilling at its Southwest PGM discovery that intersected 194m at 1.01g/t 3E and 0.17% Ni from 15m (SWRC106). The interval sits in thick platinum group metal, copper and nickel (PGM–Cu–Ni) mineralisation that starts at or near surface.
Assays were received for a further 35 holes, and 16 of those intersected broad zones of PGM–Cu–Ni sulfide mineralisation. The remaining holes helped define the strike extent and geometry of the mineralised system.
More than 40,000m of drilling is still awaiting assays, and five rigs continue to drill. The company says this represents a major pipeline of results to come in 2026. Those pending results are not yet known, so no conclusions should be drawn from them.
The company says the drilling continues to support a large PGM–Cu–Ni deposit with numerous thick, high-grade reefs from near surface. It describes this as supporting the potential for low-strip open cut mining and selective processing of high-grade reefs.
Thomas Line, CEO and Managing Director
“…these latest results further demonstrate that the mineralisation extends right to surface…”
“These results will feed directly into our maiden Mineral Resource Estimate…”
Note that all intervals are downhole lengths, and true widths are not yet known. “3E” and “PGE3” are the same measure: the sum of platinum (Pt), palladium (Pd) and gold (Au). This article uses PGE3 from here.
Shallow RC results
The RC holes were drilled roughly 370m east of the SWDD011 diamond hole. The table below shows headline and “including” intercepts from Table 2 of the announcement.
| Hole | From (m) | Width (m) | PGE3 (g/t) | Cu% / Ni% |
|---|---|---|---|---|
| SWRC106 | 15 | 194 | 1.01 | 0.10 / 0.17 |
| incl. | 43 | 24 | 1.84 | 0.19 / 0.27 |
| incl. | 49 | 5 | 2.94 | 0.29 / 0.35 |
| incl. | 185 | 9 | 3.53 | 0.21 / 0.25 |
| SWRC105 | 0 | 200 | 0.75 | 0.07 / 0.16 |
| incl. | 4 | 35 | 1.11 | 0.12 / 0.21 |
| incl. | 83 | 79 | 1.08 | 0.10 / 0.16 |
| incl. | 188 | 3 | 3.03 | 0.10 / 0.16 |
| SWRC107 | 127 | 129 | 0.98 | 0.08 / 0.15 |
| incl. | 172 | 20 | 1.46 | 0.11 / 0.20 |
| incl. | 237 | 8 | 3.39 | 0.14 / 0.22 |
Three results stand out:
- SWRC105 returned 200m at 0.75g/t PGE3 from surface.
- SWRC106 included 9m at 3.53g/t PGE3 from 185m.
- SWRC107 included 8m at 3.39g/t PGE3 from 237m.
Assays remain pending for the upper portion of SWRC107.
The near-surface zone is also relatively platinum-enriched. Pt:Pd ratios are close to 1:1, including 24m at 0.90g/t Pt and 0.86g/t Pd in SWRC106, compared with the palladium-dominant mineralisation typically intersected at depth. For investors, that signals a different metal mix near surface than the deeper reefs.
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Diamond drilling confirms continuity at depth
Diamond and RC-diamond drilling continue to intersect thick, stacked zones of sulfide mineralisation at depth, with internal higher-grade intervals. SWRD078 returned 181m at 1.12g/t PGE3 from 144.13m, including 56.87m at 1.69g/t.
Two wedge holes from the parent hole SWDD011 added to the picture:
- SWDD011W1: 105.4m at 1.03g/t PGE3 from 200.5m, including 4.3m at 3.71g/t.
- SWDD011W2: 126m at 0.98g/t PGE3 from 200m, including 5.6m at 4.29g/t.
Several holes, including SWRD073, SWRD078, SWRD079 and SWRD081, intersected multiple mineralised zones downhole. The company says this supports the interpretation of a stacked, layered geometry typical of a layered mafic intrusion. Higher-grade intervals generally coincide with elevated copper and nickel, consistent with sulfide accumulations.
The three best high-grade intervals in this group were:
- 5.6m at 4.29g/t PGE3 from 280.40m (SWDD011W2).
- 4.3m at 3.71g/t PGE3 from 287m (SWDD011W1).
- 17.60m at 2.51g/t PGE3 from 280.40m (SWDD011W2).
What is PGM–Cu–Ni mineralisation and why does it matter?
PGM stands for platinum group metals. Here, the PGE3 measure covers platinum, palladium and gold, with copper and nickel reported alongside them in the same sulfide mineralisation.
Low-strip open cut mining means removing relatively little waste rock to reach mineralisation. Because the mineralisation at Southwest reaches surface, the company says this supports the potential for that approach. Selective processing means treating the higher-grade reef material separately, which the company says could help project economics in early mining phases.
A maiden Mineral Resource Estimate (MRE) is the first formal calculation of how much mineralised material a deposit holds and at what grade. It is the step that turns drilling results into a quantified resource, which is why it is the next major milestone. The announcement gives no indication of its likely size.
Maiden MRE, metallurgy and scoping study timeline
The maiden Southwest MRE is targeted for Q1 CY2027. The company says it will provide the first formal estimate of mineralised tonnage and grade and quantify the distribution of different grade domains.
Metallurgical testwork is running in parallel. As reported on 1 October 2026, cleaner flotation trials are underway following initial rougher flotation work. The testwork is assessing concentrate options, from a single bulk sulfide concentrate to separate copper, nickel and pyrrhotite concentrates, with early engagement with smelters informing the evaluation.
A scoping study is planned following the maiden MRE. Terra intends it to evaluate preliminary mining methods, processing strategies, potential production scenarios and development options.
The sequence is:
- Resource definition drilling and assays continue.
- Maiden MRE targeted for Q1 CY2027.
- Scoping study to follow, with no date given in the announcement.
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Regional exploration extends the Dante story
Assays were also received from the broader Dante regional program, covering Oceanus, Tethys and Titan. Geological logging indicates Tethys and Titan mineralised horizons sit higher in the stratigraphy than at Southwest. The titanomagnetite-bearing reefs are considered geologically similar to those in the existing Basal Reefs Mineral Resource.
Results here are modest. Most Titan intercepts carry negligible PGE grades, so this part of the program should be read as early geological information. Tethys offers the clearest highlights from Table 3:
| Hole | From (m) | Width (m) | 3E (g/t) |
|---|---|---|---|
| TYRC004 | 28 | 5 | 1.18 |
| TYRC008 | 69 | 2 | 1.21 |
The company says the results will help refine regional exploration targets and assess opportunities for future resource growth.
For investors, the picture is of a large mineralised system with surface-to-depth continuity, an active drilling pipeline and defined next steps. Those are the Q1 CY2027 maiden MRE, ongoing metallurgical testwork and a planned scoping study. Delivery of each step remains subject to results and the usual exploration risks.
Ready To Learn More About Terra Metals’ Southwest PGM Discovery?
Shallow RC drilling at Southwest has returned 194m at 1.01g/t 3E and 0.17% Ni from 15m, with more than 40,000m still awaiting assays. A maiden Mineral Resource Estimate is targeted for Q1 CY2027.
Explore the Terra Metals (ASX: TM1) company profile for further insight into the Southwest project and the company’s investment potential. Review the latest drilling results and upcoming milestones before making your next move.