Reach Resources Expands Murchison South Gold Resource to 67,100 Ounces

Resource Growth at Murchison South

Reach Resources Limited (ASX: RR1) has announced a significant update to its Murchison South Gold Project with a new Mineral Resource Estimate (MRE) for the Pansy Pit deposit. The independent assessment by Mining Plus confirms an inferred resource of 72,000 tonnes at 2.5 grams per tonne gold, equating to 5,800 ounces. When combined with the nearby Blue Heaven deposit’s 61,300 ounces, the total gold resource inventory at Murchison South now stands at approximately 67,100 ounces.

This addition is particularly notable because it was achieved without any new drilling expenditure, relying solely on a review of historical drilling data. The Pansy Pit resource is based on reverse circulation drilling to a depth of 60 metres, with mineralisation remaining open both at depth and along strike to the north and south, suggesting further upside potential.

Geological and Operational Context

The Pansy Pit deposit is situated within granted mining lease M59/662, just over 2 kilometres from Blue Heaven and adjacent to the Great Northern Highway near Paynes Find, Western Australia. Both deposits are hosted in Archean greenstone rocks, with gold mineralisation occurring in multiple vein orientations along the Primrose Fault. The Pansy Pit mineralisation is primarily contained within a sheared mafic unit, with veins up to 2 metres wide and high-grade shoots extending along strike.

Mining Plus’ modelling used a conservative gold price of A$3,500 per ounce to optimise pit shells, despite the current spot gold price hovering around A$5,000 per ounce. This price differential underscores the potential economic upside for the project as gold prices remain elevated.

Next Steps and Strategic Outlook

Reach Resources’ CEO Jeremy Bower emphasised the significance of the result: “Without spending a dollar on any drilling, we have added more gold ounces at our Murchison South Gold project and show the potential for further upside.” The company has initiated a Scoping Study to explore development scenarios for both Pansy Pit and Blue Heaven deposits, aiming to progress rapidly toward production.

Further diamond drilling is planned to enhance metallurgical understanding and provide structural data to support resource growth and classification upgrades. Additional exploration targets along the Primrose Fault, including the Pansy North, Jacamar, and Shamrock deposits, remain prospective and will be the focus of ongoing work.

Environmental considerations appear manageable given the region’s long mining history, and metallurgical assumptions are supported by test work from Blue Heaven, which demonstrated high gold recoveries of around 97%.

Implications for Investors

The Murchison South project’s expanded resource base and the company’s strategic focus on advancing toward production position Reach Resources as an intriguing player in Western Australia’s gold sector. The inferred classification of the Pansy Pit resource reflects the historic nature of the data, but planned drilling and studies could unlock further value and improve confidence.

With gold prices at elevated levels, the project’s economics could be robust, but investors should watch for updates from the Scoping Study and drilling results to better understand the project’s development pathway.