TERRAIN MINERALS LTD (TMX): Unearthing Critical Resources Across Australia

Discover the untapped potential of Australian mining with Terrain Minerals Executive Director Justin Virgin as he reveals game-changing discoveries that could reshape the company's future.

The conversation begins with explosive news from the Smokebush project, where recent drilling has delivered spectacular results of 11 metres at 6g gold and 43.5g silver. Justin explains how these findings have completely transformed their understanding of the project, uncovering parallel structures at the Lightning and Monza prospects that suggest different mineralisation events. With characteristics resembling Volcanic Massive Sulphide deposits similar to major nearby operations, this breakthrough could signal the emergence of a significant new gold district in Western Australia.

Beyond precious metals, Justin illuminates Terrain's strategic position in the critical minerals space through their Larins Lane Gallium project. With China controlling 98% of global gallium production and prices reportedly around US$1 million per tonne, Terrain's discovery of substantial surface gallium mineralisation couldn't be more timely. This "magical glue" powers everything from AI and quantum computing to LED lighting and electric vehicles, making it an essential component of modern technology with rapidly growing demand.

Chapters

• 0:00 Introduction to Terrain Minerals

Transcript

Andrew Musgrave Host

Welcome to another episode of ASX Briefs, where we spotlight the companies and leaders shaping the future of Australian mining and resources and today I'm joined by Justin Virgin, the Executive Director of Terrain Minerals Limited, a company at the forefront of critical mineral exploration, with projects spanning gold, silver, gallium, rare earth elements, copper and lithium across Western Australia and Queensland. Justin, thanks for joining me today and welcome to the ASX Briefs podcast. 

Justin Virgin Guest

Thank you, Andrew, great to be here. 

Andrew Musgrave Host

Now, Justin, for listeners that may be unfamiliar with Terrain Minerals, can you just provide a brief overview of the company? 

Justin Virgin Guest

Terrain is an ASX exploration company. We are looking for gold, gallium and copper. That's our main three projects we have at the moment. So, we're very active and if you go back and look at our data, we've been doing a lot of drilling and we've had some pretty spectacular results, which I think is just about to excite the market. 

Andrew Musgrave Host

Now Terrain recently announced standout drill results from the Lightning and Monza prospects. So how do these results reshape your view of the Smokebush Project's potential? 

Justin Virgin Guest

These results really turn the project on its head. We got 11 metres at 6g gold and 43.5g silver from 75 metres down, which is about 50 metres true depth. There's a couple of structures sitting there Monza and 43.5g silver from 75m down to about 50m through depth. There's a couple of structures sitting there Monza and Lightning. We've been playing around there for about five years, and we knew the Monza's about 700m long, there's mineralisation throughout. But we knew we weren't in the right place. So, we've done an IP survey which picks up sulphides, which has detected Lightning, which is 50 meters off Monza, parallel, and we put a few holes into it and obviously the more data you put into these models, the better it gets. But that's where we got that spectacular drill result. So, I think we've been drilling in the wrong place and it looks like these two event, two mineralization structures are potentially from different events. 

It's got a bit of VMS smell to it. So, we can sort of explain why Monza is there because other deposits and mines around the Mount Margon intrusive units. We think that's related to that. But Lightning has got that VMS smell. And we've got Golden Grove to our north and Capricorn Metals, Mount Gibson operation to our south, are both VMSs, so potentially a really big leap forward for this project and just shows that if you persist you can do well. 

There's also Larins Lane, Gallium project, which is to the south of where Monza and Lightning is, and we've got gallium over 27 square kilometres. There's a JORC exploration target of 5% of it and we're currently gallium over 27 square kilometres. There's a drop exploration target of 5% of it and we're currently doing a government funded MET study with Curtin University and RSC. So this project's been bouncing between gallium and gold and it looks like the gold's really coming to life now. It's going to be the forefront of the company for the next 6-12 months at least, and there's a few other interesting targets to chase up now that we've got a new model that actually works in the area. 

Andrew Musgrave Host

And you mentioned those new parallel structures, so could this signal a major discovery in the Yalgoo region? 

Justin Virgin Guest

It's definitely something. It obviously hasn't come down with the rain, so it's come up from underneath. We don't have enough holes into it, so we're about to roll out a 3,500-metre RC program. If you look in today's quarterly release which came out, you'll see a diagram of what the drill program's designed and there'll be more news on that coming up. But let's get this program done. I think if this comes in, it's hold on to your hats, and there's potentially another IP survey happening down over an area called Wildflower to the south. There are sniffs of something happening down there as well. So, yeah, maybe we're onto a little camp of EMSs. I don't know, you know the drawing will tell us. But very exciting for a company with near 6 million market cap. 

Andrew Musgrave Host

Okay, and with a mining lease application already submitted for the Monza Gold Prospect, how soon could investors expect a maiden resource or a scoping level production pathway? 

Justin Virgin Guest

Depends how many metres we drill. I guess Look, probably next year. Our goal is to basically do these 3,500 metres and then probably go back for another 1,500, 2,000 straight away. We need to do some diamond drilling to bring it into a JORC, but we just need to see how it shapes up. I think we need a fair few more metres, but maybe later next year it's possible. 

Andrew Musgrave Host

And looking at Larin's Lane. So, gallium has become a globally strategic commodity, particularly in light of the semiconductor demand and the Chinese export controls. So how is the company positioning itself within this geopolitical and industrial context? 

Justin Virgin Guest

Well, we're down there looking for some polymetallics at Larins Lane, but we found gallium, basically in sand or in regolith from surface in many areas up to 63 metres thick and up to about 54 grams a tonne. So, we've got a heap of samples, say as part of a government study at the moment being run by Curtin University, and we need to find a solution to get it out. Our one's associated with the rare earths. But if you look at the global situation, China controls 98% of the gallium market. Talking to people out there, we know larger companies are paying around a million dollars a US a tonne. You know these people are using six to eight tonne a month. The world sort of stops. Gallium is this sort of magical glue. Most people don't know that. You know you can't have AI or quantum computing without gallium transistors and computer chips or LED lights in your house and your car. You can't have LEDs; you can't have lasers without gallium. 

They're putting it in your magnets in your car motors because it helps stabilize them. Gallium basically allows for more switching at lower voltages, at higher temperatures. So, they make a gallium alloy. But China, they get it all out of bauxite. They're only going to get 10% or 15% recovery. So, I would imagine it's a nasty process. 

Andrew Musgrave Host

Okay, and just touching on the Queensland copper gold tenement, can you just elaborate on where that project is at and the history of that site? 

Justin Virgin Guest

Yeah, this is another exciting project. Look, our focus is identifying good projects. Two years ago, the opportunity came up with another company dropping it. Now a geologist has had a history of this project. They've made discoveries elsewhere and they never got to this one, so this has been dragged through to other ASX companies. When he left, they dropped it, and we pegged it. 

It's taken 2 years to get it granted. The system in Queensland is a little bit different to WA. Hard to get granted, but once it's granted it's probably a bit easier. So, it's only just come online. We are now a lot of landowners wouldn't talk to us until it's granted. So, we've now started that process off. We plan to be out there as quick as we can. But there's historic 9% rock chips, copper I've walked around some of the areas and seen copper hanging out of the ground secondary copper, 2g gold. We know the Krakow gold mine so we're in a pretty interesting area. So that's where we're moving towards. Copper. Gold is a good place to be, obviously at Smokebush, at Monza and Lightning. There's potentially for other new deposits to pop out there with this new IP model. So, you know the company is definitely going to the gold, silver gold, copper route as well as the gallium. 

Andrew Musgrave Host

Okay, and Terrain is hinted at openness to joint ventures or asset divestment. So, could we see a shift towards a more focused portfolio, or is diversification part of the long-term thesis? 

Justin Virgin Guest

I think diversification is part of the long-term thesis but like all these junior companies and we’re one of them, the moment you get onto something that’s real that's what you become, and you know, logically, we're pretty exciting about the SmokeBush and what's happening there. But if that becomes real in our focus, that's where we're going to unlock the most value for shareholders and that's where we have to concentrate on and obviously at that point we're happy to look at other ways for extracting value on our other projects. 

Andrew Musgrave Host

Okay now, and just to wrap things, Terrain's market cap remains relatively modest, despite substantial exploration momentum so, what message would you like to send to current and prospective investors as you move into the next phase? 

Justin Virgin Guest

Andrew, that's quite interesting and probably quite topical. We've just announced a capital raising for $730,000, which went to shareholders, and we're also rolling out a rights issue that's non-renounceable. So, the ex-date is the 14th of May. So, if you like terrain, you want to be involved in a company that's very active with drill rig, and we've got some very exciting follow-up. I think this next program is going to be the one that sets us off. 

You can actually get some Terrain shares now. As long as you're on the register before the 14th of May, you can take up your rights and also bid for some extras. So, it’s a pretty good opportunity. You can get some new shares at 0.3 of a cent but the exciting thing is a one for one attaching option, a two-year life and a ½ cent strike price on these options to really give you a supercharged event for your portfolio because you’re getting twice as much exposure. So, it's good timing. All your viewers have an opportunity to be a part of the rights issue and apply for a few extras and get all those options. 

Andrew Musgrave Host

Okay, Justin. Well, thanks for your time today. It's been great to chat about the company and we look forward to further updates from Terrain Minerals in the upcoming months. 

Justin Virgin Guest

Thank you very much. Look forward to it. 

Andrew Musgrave Host

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.