Terra Metals (ASX: TM1) has visually confirmed multiple zones of massive sulphides in its latest diamond hole (SWDD011) at the Southwest SW6 target, reinforcing the potential for a high-grade PGM-sulphide discovery within the Dante Project.
This intercept is located proximal to a modelled DHEM conductor and is near previous high-grade mineralisation reported in drill hole SWDD006.
Earlier results from SWDD006 included 31.1g/t PGE3, 1.31% Ni, and 0.55% Cu from 226m within a 200m mineralised zone.
The new semi-massive to massive sulphide layers in SWDD011 are hosted within a 320m zone dominated by disseminated to net-textured sulfides.
Assays for SWDD011 are pending and are expected within 8-12 weeks.
Following drilling, DHEM will be completed on SWDD011 and other Southwest drillholes to guide further targeting.
Dante Project Expansion Continues
Previous drilling updates in March 2026 outlined the Southwest sulphide footprint, defining it at 650m width, 850m strike, and 348m depth, with mineralisation remaining open.
Re-assays confirmed the presence of elevated iridium-group PGM metals, specifically rhodium, iridium, ruthenium, and osmium, supporting a primary magmatic feeder/conduit model.
Beyond Southwest, ongoing drilling continues to define thick, laterally extensive Ti-V-Cu-PGM mineralisation at the Dante Reefs (Crius and Hyperion).
Reconnaissance drilling at Legacy and Reef 5 also indicates additional higher-level oxide reefs, suggesting further resource expansion upside within the broader Dante Project.
Capital Raising Fuels Drilling
In February 2026, Terra Metals successfully completed an A$85 million institutional placement.
The placement was conducted at A$0.37 per share, securing commitments from new and existing institutional and sophisticated investors.
This included cornerstone participation from Washington H. Soul Pattinson and Company (Soul Patts).
These funds are specifically earmarked to accelerate extensional and infill drilling at the Southwest prospect, advance resource definition, and conduct economic studies.
The capital injection will also support drill testing of broader exploration targets across the extensive Dante corridor.
Metallurgical Potential Confirmed
Positive metallurgical testwork conducted in 2025 indicated promising processing pathways for the Dante Project.
The results demonstrated the potential to produce three distinct high-grade concentrates: a Cu-Au-PGM sulphide concentrate, a TiO2 ilmenite concentrate, and a vanadium-rich magnetite concentrate.
The company reported that this could be achieved using relatively simple and low-cost processing techniques.
Following the expanded dataset from recent drilling, Terra Metals plans to commence a full Mineral Resource Estimate (MRE) re-estimation for the Dante Project.
Outlook: Assay Results Key
Terra Metals' recent visual sulphide intercepts at Southwest SW6 are encouraging, potentially validating the company's geological model and DHEM targeting approach.
The ongoing expansion and metallurgical test work across the broader Dante Project provide foundational support for future development.
However, significant value uplift remains contingent on forthcoming assay results from SWDD011 and continued progress in resource definition and economic studies, against a backdrop of capital raising and potential dilution.
