March Quarterly Report

29 April 2022

ASX:BCA

Rapid progress across our Pilbara manganese assets

CARAWINE JV

  • • Thick, high-grade manganese results returned from the LR1 deposit and FB3 discovery at Flanagan Bore1,2,3 with reverse circulation drill assays including:

    • o 40m @ 13.4% Mn from surface (FBRC018),

      • ▪ Incl. 11m @ 20.4% Mn from 10m

    • o 47m @ 10.6% Mn from 10m (FBRC001),

      • ▪ Incl. 10m @ 14.5% Mn from 13m

    • o 35m @ 11.7% Mn & 9.4% Fe from surface (FBRC035),

      • ▪ Incl. 15m @ 14.7% Mn & 9.7% Fe from 10m

    • o 40m @ 11.0% Mn & 8.2% Fe from surface until EOH (FBRC044)

      • ▪ Incl. 10m @ 17.4% Mn & 9.6% Fe from 15m

    • o 39m @ 13.5% Mn from surface (FBRC060),

      • ▪ Incl 15m @ 15.8% Mn from surface

    • o 40m @ 11.9% Mn from surface (FBRC061)

      • ▪ Incl. 13m @ 14.1% Mn from surface

    • o 36m @ 11.6% Mn from surface (FBRC075)

      • ▪ Incl. 14m @ 13.5% Mn from 9m

  • • Post quarter end, the Company announced an updated Indicated Mineral Resource estimate of 104Mt @ 10.5% Mn at Flanagan Bore4 at LR1 and FB3. Significant high-grade zones identified totalling 33 Mt @ 12.8% Mn across the FB3 and LR1 deposits

  • • 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.

  • • As a result of this work, the Company also announced post quarter end that it had satisfied the A$1.5m expenditure commitment to earn a 51% interest in the Carawine JV

  • 1 ASX Announcement 8 January 2022 - Thick Manganese Intersections from Drilling at Flanagan

  • 2 ASX Announcement 21 February 2022 - Further thick manganese intersections from the Flanagan Bore LR1 Deposit

  • 3 ASX Announcement 2 March 2022 - Manganese Discovery at FB3 - Flanagan Bore Project

  • 4 ASX Announcement 13 April 2022 - Mineral Resource Estimate at Flanagan Bore Exceeds 100 Mt

ASX Code: BCA

Registered Address

Telephone: +61 8 9426 0666

283 Rokeby Road

Email:info@blackcanyon.com.au

Subiaco, WA, 6008

Website:www.blackcanyon.com.au

NEW TENEMENTS

  • • Davis River EL granted during the quarter5, significantly increasing the project by 618km2 to 820km2

  • • During the quarter, the Company completed the acquisition of Panther Exploration Pty Ltd6 which holds strategic tenements adjacent to Flanagan Bore, increasing areas under exploration around Flanagan Bore by 625km2

CORPORATE

  • • Cash at hand at 31 March 2022 of $2.4m

  • • A well supported placement was completed, post quarter end raising $3.2m from new Investment Funds and Sophisticated Investors based in Australia

Commenting on activities completed during the March quarter, Black Canyon's Executive Director, Brendan Cummins, said "The highlight of the quarter was the receipt of the assay data and confirmation of a significant manganese discovery at FB3 at the Flanagan Bore Project.

"After defining a maiden mineral resource at the LR1 deposit in October 2021, post quarter end, the Company has added significant value through the expansion of Mineral Resources at LR1 and an exciting discovery at FB3. Announcing over 100 Mt of Indicated mineral resources from our maiden drill program at Flanagan Bore provides the company with a solid foundation for future development activities. In addition the outcropping higher-grade zones averaging 12.8% Mn within this Mineral Resource and exhibit impressive geological and grade continuity, both of which are extremely positive factors for resource optimisation and potential mining scenarios

"With an increasing landholding of prospective ground, we have a significant work program ahead of us as we progress Flanagan Bore towards finalising the Scoping Study in mid-2022."

Activities Report

Black Canyon (ASX: BCA) is focused on manganese exploration and development in WA's Pilbara region. The Company has a portfolio of tenements that are prospective for manganese mineralisation (Figure 1).

Mineralisation includes both "Woodie-Woodie" hydrothermal (high-grade Mn) and "Supergene Balfour" style manganese deposits (med-grade Mn/Fe).

Black Canyon has a farm-in and joint venture agreement with Carawine Resources Ltd (ASX:CWX). Subsequent to the end of the reporting period, the Company announced that it had earnt the initial 51% interest in the JV and has elected to move to 75% by sole funding $2.5m in exploration expenditure within 3 years. The Carawine Project covers approximately 793km² of tenure located south of the operating Woodie-Woodie manganese mine, providing a large footprint in a proven and productive manganese belt.

The Company also holds a number of 100% owned tenements

and during the quarter, completed the acquisition of a further

Figure 1. Black Canyon Project Locations

  • 5 ASX Announcement 15 March 2022 - Grant of Davis River EL Significantly Expands Oakover West

  • 6 ASX Announcement 7 March 2022 - BCA Completes Acquisition of Panther Exploration

625km2 of tenure surrounding Flanagan Bore (Panther tenements). The exploration tenure controlled by Black Canyon now total over 2600 km2.

FLANAGAN BORE DRILLING RESULTS1,2,3

Following the completion of the drilling programs in December 2021 (168 reverse circulation (RC) holes for 5,569 metres & 13 PQ diamond holes for 477 metres), the Company released several announcements during the quarter describing the thick, high-grade manganese mineralisation encountered at Flanagan Bore. Significant results were returned from the LR1 deposit,FB3 prospect and the FB1 and FB5 Prospects.

LR1 had a maiden Inferred Mineral Resource of 15 Mt @ 11.3% Mn defined in 2021. Drilling completed by Black Canyon in December 2021 was designed to infill and extend the mineralised area. The program was successful in expanding the mineralisation footprint and significant results included:

  • o 40m @ 13.4% Mn from surface including (FBRC018)

    • ▪ 11m @ 20.4% Mn from 10m

  • o 47m @ 10.6% Mn from 10m including (FBRC001)

    • ▪ 10m @ 14.5% Mn from 13m

  • o 26m @ 12.6% Mn from surface (FBRC016)

  • o 12m @ 16.1% Mn from 18m (FBRC015)

  • o 31m @ 11.2% Mn from surface (FBRC019)

  • o 35m @ 11.7% Mn & 9.4% Fe from surface including (FBRC035)

    • ▪ 15m @ 14.7% Mn & 9.7% Fe from 10m

  • o 40m @ 11.0% Mn & 8.2% Fe from surface until EOH including (FBRC044)

    • ▪ 10m @ 17.4% Mn & 9.6% Fe from 15m

  • o 23m @ 11.7% Mn & 8.9% Fe from surface including (FBRC022)

    • ▪ 4m @ 14.6% Mn and 7.6% Fe from surface

  • o 30m @ 12.1% Mn & 9.3% Fe from 11m (FBRC030)

  • o 22m @ 11.0% Mn & 9.4% Fe from surface (FBRC023)

The expanded mineralised footprint at LR1 is now 1,100m x 800m and open to the west.

The Company announced a discovery at FB3 during the quarter based on the drilling completed in December 2021. The drill program at FB3 encountered thick manganese intervals including shallow high-grade zones from surface with the following significant results:

  • o 39m @ 13.5% Mn from surface (FBRC060),

    • ▪ Incl 15m @ 15.8% Mn from surface

  • o 40m @ 11.9% Mn from surface (FBRC061)

    • ▪ Incl. 13m @ 14.1% Mn from surface

  • o 29m @ 14.5% Mn from surface (FBRC066)

    • ▪ Incl. 10m @ 19.2% Mn from surface

  • o 34m @ 13.7% Mn from surface (FBRC068)

    • ▪ Incl. 8m @ 17.5% Mn from surface

  • o 36m @ 11.6% Mn from surface (FBRC075)

    • ▪ Incl. 14m @ 13.5% Mn from 9m

A 1,000m x 1,000m manganese enriched shale footprint extending over the FB3 synclinal structure has now been defined.

SIGNIFICANTLY UPGRADED MINERAL RESOURCE ESTIMATE4

Subsequent to the end of the Quarter, the Company's previous Mineral Resource at the FB1 deposit (15 Mt @ 11.3% Mn - Inferred) was significantly expanded and upgraded to 104 Mt @ 10.5% Mn (Indicated) containing 11 Mt of manganese. This represents a substantial increase of 89 Mt of total tonnage and 9 Mt of contained manganese from the previous Mineral Resource or a 580% increase in Mineral Resource tonnes.

The Mineral Resource Estimate was conducted by Greg Jones, a specialist consultant in mineral resources, metallurgy and processing technology and employed by IHC Mining (refer to Competent Person statement).

Table 1 displays the Global Mineral Resource estimates for the FB3 and LR1 deposits. An oblique and cross-section view of the FB3 deposit is presented inFigure 2andFigure 3.Importantly, 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.

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

*Refer to ASX release dated 13/04/2022 Mineral Resource Estimate - Flanagan Bore Exceeds 100 Mt JORC Table 1, Sections 1 to 3 and Appendix 1-3 for further details

Figure 2. Oblique view of the Maiden FB3 Mineral Resource model looking northeast and coloured by Mn grade

(%) (2x vertical exaggeration). (Labels represent drill holes used in the estimate)

L1 and TF1 Prospects: located along strike to the east of the LR1 deposit and extending to FB3 the L1 and TF prospects have historically drill tested with four drill holes and more recently four holes the Company completed in the December 2021 drill program. The results have been encouraging and similar to those already drilled into LR1 and FB3 but there remains 2,000 m of strike that requires more systematic drill testing.

1000m cross strike Mn mineralisation

Vertical Exaggeration = 2

Figure 3. Type section 278,450 mE mid-point (looking north-east) showing FB3 Mineral Resource model cells and drill holes coloured by Mn grade (%) (2x vertical exaggeration)

Within the significantly expanded and upgraded Mineral Resource across FB3 and LR1 deposits at Flanagan Bore, a shallow, high-grade subset of mineralisation has been delineated and presented in Table 2. Using an elevated cut-off grade of 11% Mn the Mineral Resource estimate totals 33 Mt @ 12.8% Mn and classified as Indicated. 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.

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

*Refer to ASX release dated 13/04/2022 Mineral Resource Estimate - Flanagan Bore Exceeds 100 Mt JORC Table 1, Sections 1 to 3 and Appendix 1-3 for further details

FURTHER EXPLORATION UPSIDE AT FLANAGAN BORE

The Company is planning to drill a number of manganese-enriched shales targets as summarised below:

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Black Canyon Ltd. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 04:11:37 UTC.