Terrain Minerals Ltd (ASX:TMX, OTC:TMXAF) used the December quarter to advance its Smokebush gold-silver project towards resource definition, kicking off a major drilling campaign at the Lightning prospect, securing a mining lease over the area and completing capital raisings to fund exploration through to a maiden JORC estimate targeted for mid-2026.
In its quarterly report released on Monday, the explorer said a 34-hole, 6,800-metre reverse circulation (RC) program was under way across Smokebush, with Lightning â the companyâs most advanced gold target â the initial focus. Drilling began on November 27, with 12 holes for 2,459 metres completed before a Christmas and New Year pause. The rig is expected to return in early January, with assay results to be released once the full program is complete.
Terrain Mineralsâ 100%-owned Lightning Gold Prospect, (part of Smokebush Project), is located within the highly prospective Murchison Gold Region of Western Australia. Located 350 kilometres north of Perth, the project is surrounded by mining operations including Capricorn Metalsâ Mt Gibson Gold Project, 29Metals' Golden Grove processing facility and Vault Mineralsâ high grade Rothsay Gold Mine.
Terrain said the quarter also delivered a key regulatory milestone, with the Lightning tenement converted to a granted mining lease â an important step as the company works towards its first Mineral Resource Estimate. Diamond drilling is being planned to support the mid-2026 resource timeline.
Lightning drilling targets scale and confidence
The Lightning component of the campaign comprises 21 RC holes for more than 4,500 metres, with a further 500 metres held in reserve for follow-up drilling if results warrant. Terrain said the program is designed to both extend known mineralisation and test new targets identified through geophysics.
About 70% of drilling is aimed at extending existing gold zones along strike and at depth to build tonnage for a maiden resource. A further 22% is focused on testing eastâwest-trending magnetic features interpreted as potential new gold-bearing structures, while the remainder targets a previously undrilled area with a similar geophysical signature to Lightning that could represent a repeat-style discovery.
Lightning is a blind discovery first identified using induced polarisation (IP) geophysics, with mineralisation not outcropping at surface. Earlier drilling has confirmed thick gold and silver mineralisation associated with sulphides, with Terrain pointing to a developing polymetallic signature.
Historic results highlighted in the quarterly include multiple higher-grade intersections at Lightning and the nearby Monza trend, such as 11 metres at 6.03 grams per tonne gold and 43.5 g/t silver from 75 metres (SBRC063) and 3 metres at 6.12 g/t gold from 26 metres (SBRC064), alongside a range of additional multi-metre gold intercepts.
Geological cross-section of drill holes SBRC063, SBRC079 and SBRC080 from Terrain Minerals' recent program targeting the Lightning gold trend. A follow-up drill program, scheduled to commence during the coming quarter, will include testing the depth continuation of gold mineralisation below hole SBRC080.
Terrain said geological interpretation continues to improve, with drilling defining a north-trending shear-hosted system and multiple mineralised lenses. Eastâwest magnetic lithological units appear to act as traps for thicker, higher-grade zones, while IP geophysics has repeatedly proven effective as a low-cost targeting tool.
Indicative drill traces of the current reverse circulation (RC) drilling program superimposed over the open-file Western Australian government aeromagnetic data for the prospect area. Early modelling suggests a north-trending shear zone acts as a gold fluid pathway with east-west high magnetic lithological units are acting as traps for thicker, high-grade mineralisation.
Wildflower drilling up next
Following completion of Lightning drilling, Terrain plans to move the rig to the Wildflower gold prospects for a 13-hole, 2,300-metre RC program. The targets were generated from a recent IP survey that identified three strong chargeability anomalies aligned with structural corridors.
Terrain said the Wildflower targets share geological similarities with Lightning and sit in comparable positions around the same intrusive system. Drilling is expected to commence shortly after Lightning wraps up, with results anticipated in April 2026.
The Lightning Gold Prospect is located 15 kilometres from the operating Rothsay Gold Mine and within proximity to Capricorn Metalsâ 4.5-million-ounce Mt Gibson Gold Deposit.
Funding supports next phase
To underpin its expanding work program, Terrain completed two placements during the quarter, raising a combined $2.76 million before costs. The company said the funding positions it to complete the RC drilling at Lightning and Wildflower, commence diamond drilling and continue technical work required for its maiden resource estimate.
Director participation totalling $450,000 across both placements remains subject to shareholder approval, with a general meeting scheduled for January 30, 2026.
Broader portfolio advances
Beyond Smokebush, Terrain reported progress across several other assets during the quarter.
At the Carlindie lithium project in the Pilbara, the company completed an ultra-low-cost soil sampling program covering a 15-kilometre strike length along structures interpreted to control lithium-bearing pegmatites. A total of 822 samples have been submitted for analysis, with results pending.
At the Lort River rare earths project near Esperance, an airborne electromagnetic survey outlined a shallow conductive regolith basin more than 12 kilometres long and 5.5 kilometres wide. The basin correlates with previous drilling that intersected elevated total rare earth oxides, including magnet rare earths such as neodymium and praseodymium. Follow-up air-core drilling and metallurgical sampling are planned for the coming quarter.
Terrain also continues metallurgical test work at its Larinâs Lane gallium and rare earths project, with studies supported by the Minerals Research Institute of Western Australia and Curtin University assessing extraction pathways for regolith-hosted gallium. Results are expected by the end of the March 2026 quarter.
With drilling underway, funding secured and a mining lease in hand, Terrain enters 2026 focused on converting its Lightning discovery into a defined gold resource while advancing a broader pipeline of critical and battery metals projects.