Black Canyon : Mineral Resource Estimate at Flanagan Bore Exceeds 100 Mt

ASX Announcement

13 April 2022

ASX:BCA

Mineral Resource Estimate at Flanagan Bore

Exceeds 100 Mt

HIGHLIGHTS

• • Global Indicated Mineral Resource estimate of 104 Mt @ 10.5% Mn containing 11Mt of manganese at the FB3 and LR1 deposits, Flanagan Bore, comprising;

  • o A maiden Mineral Resource estimate at FB3 of 67 Mt @ 10.4% Mn (Indicated)

  • o An expanded Mineral Resource estimate at LR1 of 37 Mt @ 10.8% Mn (Indicated), representing a 147% increase over the previous, maiden LR1 Mineral Resource1

• • Significant high-grade zones identified totalling 33 Mt @ 12.8% Mn across the FB3 and LR1 deposits

• • The updated Mineral Resource estimate adds 89 Mt of mineral resource containing 9 Mt of manganese

• • Geological and grade models show exceptional continuity between drill holes and supports the higher confidence Indicated Mineral Resource classification at both deposits

• • The Mineral Resource estimate highlights significant scale, well defined grade domains and high-grade manganese mineralisation commencing from surface

• • The updated Indicated Mineral Resource estimate provides a robust foundation for use in scoping level and potential detailed development studies into the future

• • Metallurgical test work continues with the delivery of drill core composites for ore sorting trials at Steinert Global, with results expected in May 2022. Preparing samples for heavy liquid separation (HLS) test work by the end of the month.

Australian manganese explorer, Black Canyon Limited (Black Canyon or the Company) (ASX:BCA), is pleased to announce a significant increase in the Mineral Resource tonnage and contained manganese at its Flanagan Bore Project in the eastern Pilbara region of Western Australia.

The previous Mineral Resource at the FB1 deposit at Flanagan Bore comprised 15Mt @ 11.3% Mn (Inferred) has been significantly expanded and upgraded to 104 Mt @ 10.5% Mn (Indicated) containing 11 Mt of manganese (Table 1). This represents an substantial increase of 89 Mt of total tonnage and 9

1 ASX:BCA Announcement 5 October 2021 - Maiden Manganese Resource for LR1 Prospect at Flanagan Bore

ASX Code: BCA

Registered Address	Telephone: [phone]
283 Rokeby Road	Email:[e-mail]
Subiaco, WA, 6008	Website:www.blackcanyon.com.au

Mt of contained manganese from the previous Mineral Resource or a 580% increase in Mineral Resource tonnes.

The Mineral Resources defined at LR1 and FB3 have been estimated based on drill assay information received from the 4,312 m reverse circulation (RC) drill program completed in December 2021, in addition to 516 m of historic RC drilling from 2012.

Flanagan Bore is part of the Company's Carawine JV and is subject to a farm-in and joint venture agreement with Carawine Resources Ltd (ASX:CWX). Having earned a 51% interest, Black Canyon is now earning up to 75% in the Carawine Project tenements by sole-funding an additional $2.5m of exploration expenditure. The Flanagan Bore project is located approximately 400 km southeast of Port Hedland.

Black Canyon Executive Director, Brendan Cummins, said: "The Company is very fortunate that from our first drill program at Flanagan Bore, we have been able to deliver a large-scale, high quality manganese Mineral Resource. In my experience, this is uncommon and is testament to the robustness of the mineralisation we have discovered at FB3 and LR1. Defining an Indicated Mineral Resource of greater than 100Mt has more than exceeded our expectations at such and early stage for the project."

"In addition the outcropping higher-grade zones averaging 12.8% Mn within this Mineral Resource exhibit impressive geological and grade continuity, both of which are extremely positive factors for resource optimisation and potential mining scenarios. The large tonnage resource also enables the Company to consider using elevated cut-off grades to increase the mine feed grade whilst maintaining sufficient tonnage for a long-life mining operation."

"There also remains further upside at Flanagan Bore with several other manganese targets that have only been partly tested or remain untested such as FB1, FB5 and FB6 with the potential to deliver significant additional tonnage to the project."

Table 1. Global Mineral Resource estimate for the FB3 and LR1 deposits at Flanagan Bore April 2022*

Grand Total Notes:

67 37 104

7 4 11

2.4 2.4 2.4

10.4 10.8 10.5

10.3 8.9 9.8

17.9

4.7

(1) Mineral resources reported at a cut-off grade of 7% Mn

Summary of Mineral Resources(1)DepositMineral Resource Category

In SituMaterial

(Mt)

Mn (Mt)

BD (gcm3)Mn (%)Fe (%)Si (%)Al (%)

FB3

LR1

Indicated Indicated

17.6 4.5

18.3 5.0

* refer below, JORC Table 1, Sections 1 to 3 and Appendix 1-3 for further details

Figure 1. Flanagan Bore Project - FB3 & LR1 Mineral Resource outlines and future resource potential upside at

FB1, L1, TF1, FB5 and FB6 (Black Canyon (51%) earning up to 75%)

FB3 and LR1 Global Mineral Resource Estimate

Historic drill (RC) results from the LR1 Prospect and new RC drill assay information from the LR1 and FB3 deposits have been reviewed and validated for the Mineral Resource estimate. The work was supervised and conducted by Greg Jones, a specialist consultant in mineral resources, metallurgy and processing technology and is employed by IHC Mining (refer to Competent Person statement).

Table 1 displays the Global Mineral Resource estimates for the FB3 and LR1 deposits. The grade tonnage curves are presented in Figures 2 to 5 and an oblique and cross-section views of the FB3 and LR1 deposits are presented in Figures 6 to 9. Supporting JORC tables are presented in Appendix 1, 2 and 3.

The Mineral Resources at LR1 and FB3 are outcropping, and form pronounced topographic features. The Mineral Resource estimate is based on drill holes on traverses completed on 200 m spaced lines at 100 m drill hole centres. At FB3, a total of 76 holes for 2,016 m metres were drilled averaging 27 m depth, whilst at LR1, a total of 47 holes for 2,296 m averaging 48 m depth were completed. The drill data shows manganese grades are strongly continuous downhole and across strike, which has significantly improved the confidence in the estimate and supports the Indicated Mineral Resource classification. High-grade manganese mineralisation is encountered from surface at FB3 and LR1 with zones of continuous mineralisation typically between 20 to 40m thick.

High-Grade Manganese Mineral Resource

A shallow, high-grade subset of mineralisation has been delineated across the LR1 and FB3 Mineral Resources and presented in Table 2. At an elevated cut-off grade of 11% Mn the Mineral Resource estimate totals 33 Mt @ 12.8% Mn at an Indicated level of classification. This higher-grade material could be capable of supporting a substantial, multi-decade mining operation at Flanagan Bore with potential to also grow the resource base in the region.

As the Company progresses the Scoping Study, the proposition of having immediate access to high grade manganese Mineral Resources from surface will be evaluated and potentially add significant value.

Table 2. High-grade Zone Mineral Resource estimate from the FB3 and LR1 deposits at Flanagan Bore April 2022*

Summary of Mineral Resources(1)

Mineral

In Situ

Deposit	Resource	Material	Mn	BD	Mn	Fe	Si	Al
Category	(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)
FB3	Indicated	19	2	2.4	12.7	11.5	18.5	4.6
LR1	Indicated	15	2	2.4	12.9	9.9	18.4	4.9
Grand Total	33	4	2.4	12.8	10.8	18.5	4.8
Notes:

(1) Mineral resources reported at a cut-off grade of 11% Mn

* refer below, JORC Table 1, Sections 1 to 3 and Appendix 1-3 for further details

Figure 2. FB3 Mineral Resource grade-tonnage curve

Figure 3. FB3 Mineral Resource grade-contained metal tonnage curve