Reach Resources Reports 67,100oz Gold Resource at Murchison South

Resource Growth at Murchison South

Reach Resources Limited (ASX – RR1) has announced a notable increase in its gold resources at the Murchison South project in Western Australia. The combined Mineral Resource Estimates (MRE) for the Blue Heaven and Pansy Pit deposits now total approximately 67,100 ounces of gold. This update follows recent independent assessments by Mining Plus Pty Ltd, confirming the scale and quality of the deposits.

The Blue Heaven deposit remains the cornerstone, with 681,000 tonnes grading 2.8 grams per tonne gold, translating to 61,300 ounces. Impressively, over 65% of this resource is classified as Indicated, providing a higher confidence level for potential development. Meanwhile, the Pansy Pit deposit contributes an additional 5,800 ounces from 72,000 tonnes at 2.5 grams per tonne, based solely on historical drilling to a depth of 60 meters. Importantly, mineralisation at Pansy Pit remains open both at depth and along strike, suggesting further upside potential.

Metallurgical and Operational Insights

Metallurgical test work conducted on Blue Heaven samples by Nagrom in Perth has demonstrated an average gold recovery rate of 97%, indicating that the gold mineralisation is amenable to conventional leaching processes. This high recovery rate bodes well for the economic viability of future mining operations.

Both deposits are located within granted mining leases along the Great Northern Highway near Payne’s Find, with Blue Heaven situated on lease M59/769 and Pansy Pit on M59/662, just 2 kilometers apart. The proximity of these deposits could facilitate integrated mining operations, potentially reducing costs and improving project economics.

Exploration Upside and Future Prospects

Mining Plus’s geological review has identified significant exploration targets along the Primrose Fault, including the Shamrock deposit to the south and the Pansy North and Jacamar deposits to the north. These areas feature mapped quartz veins that are promising conduits for gold mineralisation, suggesting that further drilling could materially increase the resource base.

During the quarter, Reach Resources invested $415,000 in exploration and evaluation activities, including a sterilisation reverse circulation drill program and laboratory analyses. The company also progressed engineering designs as part of a scoping study for Blue Heaven and Pansy Pit, laying groundwork for potential development decisions.

Financial Position and Corporate Update

As of 30 June 2025, Reach Resources held $3.272 million in cash, providing a solid financial foundation to continue exploration and study work. There were no production or development activities during the quarter, reflecting the company’s focus on resource definition and project evaluation at this stage.

Additionally, Reach Resources retains potential deferred consideration from the sale of its Albury Heath asset, which could provide up to $600,000 subject to milestones. The company also maintains a diversified portfolio including lithium, manganese, and rare earth element projects, alongside an investment in REEcycle Inc., a patented technology for recycling rare earth elements from permanent magnets.