Black Canyon (ASX:BCA) has confirmed high-grade manganese and iron results in the third batch of assay outcomes from resource definition and expansion drilling at its Wandanya project in northern Western Australia. Western Australia is already a significant global manganese producing region, hosting major operations such as South32's Groote Eylandt mine in the Northern Territory and Woodie Woodie in the Pilbara, placing Black Canyon's work in an established mining jurisdiction with existing infrastructure and export pathways.

Drilling across the central portion of the three-kilometre-long base case target at Wandanya has continued to yield consistent zones of high-grade stratiform manganese and iron mineralisation. Managing Director Brendan Cummins said additional resource expansion drilling has extended the base case manganese mineralisation 400 metres to the south.

"Resource definition drill results continue to demonstrate the significance of the Wandanya discovery, with the latest assays confirming the predictability of shallow, thick and high-grade intervals of stratiform manganese and iron mineralisation," Cummins said.

"Since our first drill program at Wandanya we have reported assay results for 786 holes out of the 929 holes drilled. Remarkably, our mineralisation intersection success rate has been almost 9 out of every 10 holes drilled, which demonstrates the scale and consistency for both the iron and manganese, especially within the three-kilometre-long base case target."

"The consistency of the high-grade results gives us great confidence in the grade and scale potential of the system, which is exactly what you want for a development project," he added.

The company is awaiting the remaining assay results ahead of delivering a maiden mineral resource estimate and an initial financial evaluation for a dual commodity operation in the coming months. The maiden resource will be a key milestone for investors to gauge the project's economic potential, as no tonnage or grade estimate currently exists for the deposit.

Manganese is essential for steelmaking, which accounts for the vast majority of global demand, and is increasingly sought for use in electric vehicle battery cathodes, including nickel-manganese-cobalt (NMC) chemistries. The Australian government classifies manganese as a critical mineral, reflecting its strategic importance to supply chains for both traditional industries and clean energy technologies.

The resource definition drilling has further highlighted direct shipping ore (DSO) potential. DSO operations are attractive because they can potentially reduce processing costs and shorten timelines to first production, as ore is mined and sold with minimal beneficiation. Iron ore drop tower tests completed by the company produced a high percentage (74%) of lump product, with an average grade of 59.7% iron — a specification typically sought after in the market as a premium product.

The central section is characterised by thick intervals of high-grade iron, with multiple drill holes reporting intersected thicknesses exceeding 10 metres and reaching up to 18 metres from the surface.

Separately, a Western Australian government Exploration Incentive Scheme (EIS) co-funded detailed gravity survey is more than 80% complete and is expected to be finalised by mid-August. The gravity survey has been designed to test for deeper manganese targets potentially related to hydrothermal manganese mineralisation. Hydrothermal manganese systems can host higher-grade material at depth compared to stratiform deposits, potentially broadening the project's resource base beyond near-surface mineralisation.

BCA shares were steady at 30.5 cents, with a market capitalisation of $49.45 million.