Burracoppin Gold Soil Sampling Yields Up to 7.2 ppb Au; Cash Position $254K

Exploration Momentum Builds at Burracoppin Gold

Reedy Lagoon Corporation Limited (ASX: RLC) has reported steady progress in its Burracoppin Gold project during the December 2024 quarter, with initial soil sampling at the Windmills prospect revealing encouraging gold anomalies. The project, spanning 241 square kilometres in Western Australia's central Wheatbelt, is strategically positioned between Perth and Kalgoorlie, near established gold mines such as Edna May and Tampia.

During the quarter, 44 surface soil samples were collected from the northern section of the Windmills prospect, part of a broader program targeting the Yandina Shear Zone, a 30-kilometre structural feature that remains largely underexplored. Assay results received post-quarter showed anomalous gold values reaching up to 7.2 parts per billion, significantly above background levels, extending the known auriferous zone to at least 1,500 metres in strike length.

Geophysical Insights and Target Refinement

Complementing the geochemical work, a UAV magnetic survey conducted in late 2023 has helped delineate key structural targets, notably the WM1 zone at Windmills. This magnetic unit, segmented by cross-cutting faults, may represent dilation zones conducive to gold mineralisation. However, access restrictions limited survey coverage in some areas, prompting plans for further soil sampling and heritage surveys in the March quarter to refine drill targets.

Other prospects within the Burracoppin Gold project, Lady Janet, Shear Luck, and Zebra, are also slated for soil sampling in the coming months. These areas exhibit structural complexity and anomalous gold-in-soil signatures, with discrete magnetic anomalies identified from UAV data guiding exploration priorities.

Iron Project Faces Market Challenges but Seeks Strategic Partnerships

On the iron front, Reedy Lagoon continues to seek a farm-in partner for its Burracoppin Iron project, which hosts a magnetite deposit capable of producing high purity pig iron (HPPI) using biomass-based carbon and HIsmelt technology. Despite the project's promising low-cost, green production model, the current negative outlook for steel and iron ore markets has tempered near-term development plans.

The deposit benefits from excellent infrastructure, including proximity to the Great Eastern Highway and the Trans-Australian Railway, facilitating potential heavy-haul logistics. The company’s strategy hinges on securing a steel producer partner interested in a stable HPPI supply, leveraging depressed upstream conditions to position downstream operations advantageously.

Financial Position and Corporate Developments

Reedy Lagoon ended the quarter with $253,767 in cash, bolstered by a recent entitlement offer raising approximately $284,000 and a share issuance under a scheme that reduced subordinated loans. Exploration expenditure remained modest at $14,572 for the quarter, reflecting a disciplined approach amid ongoing exploration and project advancement.

Notably, the company implemented a Mine Safety Management System in compliance with Western Australia’s Work Health and Safety Act 2020 and appointed Geof Fethers as Exploration Manager for the Burracoppin Gold project, underscoring a commitment to operational rigour and governance.

Looking Ahead

With extensive soil sampling programs planned across its gold prospects and ongoing efforts to secure a joint venture partner for its iron project, Reedy Lagoon is positioning itself for a pivotal year. The upcoming assay results and potential farm-in agreements will be critical in shaping the company’s trajectory and unlocking value for shareholders.