Reedy Lagoon Corporation has identified several promising gold drill targets at its Burracoppin project while seeking a farm-in partner for its iron venture, signaling a pivotal phase in exploration and development.
- Multiple gold targets identified at Lady Janet, Windmills, Shear Luck, and Zebra prospects
- Integrated soil geochemistry and geophysical data guide drill planning
- Burracoppin Iron project seeks farm-in partner for resource drilling
- Corporate cash at $97,864 with exploration expenditure of $21,249 this quarter
- Directors forego remuneration; related party provides interest-free subordinated loan
Exploration Momentum Builds at Burracoppin Gold
Reedy Lagoon Corporation Limited (ASX – RLC) has reported significant progress in its Burracoppin Gold Project, located in Western Australia's central Wheatbelt region. The company has integrated fine fraction soil sampling results with airborne magnetic data to pinpoint multiple structural targets across four key prospects – Lady Janet, Windmills, Shear Luck, and Zebra. These targets, characterized by anomalous gold and pathfinder elements such as arsenic and antimony, are now primed for drill testing.
The Lady Janet prospect, straddling the Yandina Shear Zone, shows continuous gold anomalies over a strike length exceeding one kilometre, with geological structures interpreted to be conducive to gold mineralisation. Similarly, the Windmills prospect reveals intersecting fault zones with elevated gold and associated elements, highlighting areas of structural complexity favorable for mineral deposition.
Strategic Focus on Iron Project and Innovative Technology
While exploration advances on the gold front, Reedy Lagoon is actively seeking a farm-in partner for its Burracoppin Iron Project. The project aims to develop a magnetite deposit capable of producing high-purity pig iron using HIsmelt technology, a process that promises net zero greenhouse gas emissions by substituting coal with biochar. Although no field work was conducted this quarter, the company’s plans include drilling to establish a mineral resource, positioning the project to meet potential demand from steel producers interested in green pig iron.
The HIsmelt technology, with operational plants in China and Southeast Asia, offers a competitive edge by exporting power during smelting, contrasting with the energy-intensive conventional blast furnace and direct reduction iron methods. However, Reedy Lagoon currently holds no agreement to use this technology, pending negotiations with the technology owners.
Corporate and Financial Overview
At quarter-end, Reedy Lagoon reported cash reserves of approximately AUD 97,864, with exploration expenditure totaling AUD 21,249. Notably, the board of directors has elected to forgo remuneration for the period, reflecting a cautious financial stance amid ongoing exploration activities. The company also secured an interest-free subordinated loan of AUD 50,000 from a related party, underscoring the tight liquidity position.
On the environmental front, Reedy Lagoon completed reclamation obligations for its discontinued Columbus Salt Marsh project in Nevada, receiving bond refunds following satisfactory inspections by the Bureau of Land Management. This demonstrates the company's commitment to responsible project closure and environmental compliance.
Looking Ahead
Reedy Lagoon’s immediate plans include finalising landowner agreements, conducting heritage surveys, and commencing drilling at selected gold targets, subject to funding or farm-out arrangements. The company’s ability to secure a partner for the iron project will be critical to advancing resource definition and unlocking the potential of its magnetite deposit.
Bottom Line?
With multiple gold targets ready for drilling and a strategic search for an iron project partner underway, Reedy Lagoon stands at a crossroads that could define its next growth chapter.
Questions in the middle?
- When will Reedy Lagoon commence drilling at the identified gold targets, and what initial results can be expected?
- How soon can the company secure a farm-in partner for the Burracoppin Iron Project, and what terms might be involved?
- What progress is being made toward formalising the use of HIsmelt technology, and how might this impact project economics?