Terra Metals Uncovers High-Grade Sulfides at Southwest Prospect Expansion

Terra Metals Expands Southwest Prospect with Multiple High-Grade Sulfide Discoveries

Terra Metals Limited (ASX: TM1) has delivered exceptional first assay results from its Southwest SW1 Prospect, revealing a complex multi-metal system that significantly expands the company's Terra Metals Southwest prospect expansion potential. The latest reverse circulation drilling has intercepted multiple near-surface Bushveld-style reefs alongside newly identified magmatic Cu-Ni-PGE-Co sulfide zones, establishing Southwest as a district-scale polymetallic discovery.

The standout results demonstrate the remarkable diversity of this emerging system, with 21-35 metre thick mineralised zones returning copper equivalent grades up to 1.18% CuEq. Furthermore, these intercepts build directly on previous Southwest discoveries, expanding the footprint of sulfide-bearing mineralisation and confirming multiple stacked layers close to surface across the 12 km² prospect area.

Breakthrough Drilling Results Reveal System Scale

The first batch of assay results from Southwest's SW1 prospect has exceeded expectations, delivering substantial high-grade intercepts across four drill holes. Moreover, the Terra Metals Southwest prospect expansion has demonstrated exceptional continuity across multiple geological horizons.

Key Intercepts Summary

These results represent only the first holes to return assays from SW1, with several subsequent holes containing stronger visual sulfides still pending laboratory analysis. In addition, the consistency of results across multiple drill holes validates the systematic approach to the Terra Metals Southwest prospect expansion.

Managing Director Commentary

"These latest results demonstrate the scale and diversity of mineralisation across the Dante Project. The associations we are seeing are consistent with immiscible sulfide melt separating from the magma during recharge events – a recognised process in many layered intrusions globally, such as the Sudbury Igneous Complex," said Managing Director Thomas Line.

Understanding Magmatic Sulfide Systems: A Primer for Investors

The sulfide mineralisation discovered at Southwest represents a magmatic sulfide system formed when sulfur-rich liquid separates from cooling magma and pools at the base of rock layers. Consequently, this process, known as immiscible sulfide melt segregation, creates some of the world's most valuable Ni-Cu-PGE deposits.

Why This Matters to Investors:

• Proven Geology: Similar processes created the Sudbury Igneous Complex in Canada, one of the world's most productive nickel-copper-PGE districts
• High-Value Metals: These systems concentrate platinum group elements (PGEs), copper, and nickel – critical metals for the energy transition
• Predictable Targeting: Understanding the geological controls allows systematic exploration for additional high-grade zones

The presence of net-textured to semi-massive sulfides at Southwest indicates a well-developed system with excellent potential for higher-tenor accumulations in feeder zones. However, the true significance lies in how this discovery validates the broader Terra Metals Southwest prospect expansion strategy.

Multiple Discovery Styles Across Southwest Prospect

Southwest is emerging as a multi-faceted polymetallic system hosting at least three distinct mineralisation styles. For instance, the diversity of mineralisation types significantly enhances the project's economic potential and development flexibility.

1. Bushveld-Style Fe-Ti-V Reefs

• Thick oxide packages reaching up to 58 metres
• Higher TiO₂ and V₂O₅ grades than current Dante MRE reefs
• Large-scale tonnage potential for titanium-vanadium operations

2. Magmatic Cu-Ni-PGE-Co Sulfides

• Net-textured to semi-massive accumulations at mafic cycle bases
• Near-equal nickel and copper with elevated PGEs and cobalt
• Primitive geochemical signatures indicating feeder zone proximity

3. Stratiform Reef Sequences

• Multiple stacked mineralised layers from surface to depth
• Consistent metal enrichment along basal contacts
• District-scale continuity potential across the 12 km² prospect

This diversity positions Southwest as a comprehensive polymetallic district rather than a single-commodity target, significantly enhancing development optionality and economic robustness.

Strategic Context: Building on Dante's Foundation

Southwest represents the third major discovery area within Terra Metals' expanding Dante Project, located approximately 5 kilometres west of the established 148 Mt Mineral Resource Estimate. Furthermore, the project's strategic positioning within the globally significant Giles Intrusive Complex provides exceptional geological context for the ongoing Terra Metals Southwest prospect expansion.

Current Dante Project Resources

The Southwest discoveries significantly expand this foundation, with reef thicknesses substantially greater than those in the current MRE and additional sulfide potential not represented in existing resources. Consequently, the strategic value of this discovery extends far beyond the immediate drill results.

2026 Development Pipeline: Systematic Expansion Strategy

With the 2025 drill programme now complete totalling 21,678 metres and assays pending for approximately 106 drill holes, Terra Metals is implementing a comprehensive advancement strategy. In addition, this systematic approach ensures optimal value extraction from the expanding discovery footprint.

Immediate Technical Programmes

• Metallurgical testwork on Southwest sulfide and oxide zones
• Downhole electromagnetic surveys to identify off-hole conductors
• Detailed gravity surveys to map feeder system geometry
• Heritage clearance programmes for expanded drilling areas

2026 Exploration Priorities

• Systematic drilling across high-priority Southwest targets (SW2-SW6)
• Resource definition drilling at SW1 sulfide zones
• Step-out exploration along the 80+ kilometre prospective strike
• Integration studies for multi-commodity development scenarios

The company's systematic approach to advancing multiple prospects simultaneously positions Dante for accelerated resource growth and development optionality across various commodity exposures.

Investment Thesis: Multi-Commodity Critical Metals Platform

Terra Metals has established itself as a premier critical metals developer through the systematic expansion of the Dante Project. Moreover, the Southwest discoveries fundamentally enhance the investment proposition across multiple dimensions, validating the strategic focus on the Terra Metals Southwest prospect expansion.

Scale and Grade Advantages

• Thick, high-grade mineralisation with intercepts exceeding 30 metres
• Multiple stacked reef systems providing substantial tonnage potential
• Near-surface access minimising development complexity and cost

Critical Metals Exposure

• Titanium dioxide: Essential for pigments and aerospace applications
• Vanadium pentoxide: Critical for energy storage and steel alloys
• Platinum group elements: Indispensable for hydrogen economy infrastructure
• Copper and nickel: Fundamental to electrification and renewable energy

Geological Endowment

• World-class geological setting within the Giles Intrusive Complex
• Proven mineralisation styles with global analogues in producing districts
• District-scale potential across 80+ kilometres of prospective strike

Key Differentiator: Unlike single-commodity projects, Dante's multi-metal nature provides commodity price diversification and enhanced development economics through integrated processing opportunities. However, the true value lies in the systematic approach to developing this complex geological system.

Why Investors Should Track Terra Metals Closely

The Southwest discoveries position Terra Metals as a standout critical metals story with several compelling tracking catalysts. Furthermore, the ongoing Terra Metals Southwest prospect expansion offers multiple value creation opportunities across various timeframes.

Near-Term Value Catalysts

• Pending assay results from 106+ drill holes across multiple prospects
• Resource expansion potential at Southwest and other Dante targets
• Metallurgical advancement defining processing pathways for multiple commodities
• Strategic development studies evaluating integrated polymetallic operations

Medium-Term Growth Drivers

• Resource definition drilling across the expanding Southwest system
• New prospect generation along 80+ kilometres of prospective geology
• Partnership opportunities with major mining companies seeking critical metals exposure
• Development pathway clarity toward production scenarios

Sector Positioning Advantages

• First-mover advantage in Australia's critical metals development
• Strategic location with established infrastructure connectivity
• Proven management team with successful development experience
• Strong balance sheet supporting aggressive exploration expansion

Investment Highlight

Terra Metals has demonstrated exceptional geological success in expanding the Dante Project beyond initial expectations. With Southwest emerging as a district-scale polymetallic system and substantial drilling results pending, the company offers compelling exposure to critical metals essential for the global energy transition. Investors seeking leveraged exposure to titanium, vanadium, PGEs, copper, and nickel should monitor Terra Metals' continued advancement of this world-class geological endowment.

The combination of proven geology, multiple discovery styles, and systematic development approach establishes Terra Metals as a premier critical metals investment with significant upside potential as the Southwest system continues expanding. Consequently, the successful execution of the Terra Metals Southwest prospect expansion strategy positions the company for sustained value creation across multiple commodity cycles.

Want to Learn More About Terra Metals' Southwest Discovery?

With exceptional drilling results pending from over 106 holes and a district-scale polymetallic system emerging at Southwest, Terra Metals is rapidly advancing one of Australia's most compelling critical metals projects. The company's systematic expansion across multiple discovery styles—from high-grade magmatic sulfides to thick Bushveld-style reefs—positions investors for leveraged exposure to the energy transition's most essential commodities. To explore Terra Metals' complete project portfolio, technical data, and upcoming development milestones, visit the company's official website for comprehensive investor resources and management presentations.