Mining Approvals and Resource Confidence: What Risks Lie Ahead for Reach Resources?

Progressing Towards Mine Development

Reach Resources Limited (ASX, RR1) has reported steady advancement in its September 2025 quarterly activities, focusing on the Murchison South Gold Project near Paynes Find, Western Australia. The company has completed key components of its scoping study, including pit optimisation and conceptual pit shell modelling, laying the groundwork for future mine planning and financial modelling.

Environmental and heritage surveys across all tenements have been completed without identifying any significant obstacles, a positive sign as Reach moves towards securing mining approvals. Complementary studies in hydrology, hydrogeology, waste characterisation, and engineering design are ongoing, reflecting a comprehensive approach to project development.

Strong Metallurgical Results Bolster Project Viability

Metallurgical test work conducted earlier this year has delivered encouraging results, with an average gold recovery rate of 97% from bottle roll leach tests on composite samples. This high recovery rate suggests that the gold mineralisation is amenable to conventional processing methods, which could translate into more efficient and cost-effective extraction.

To deepen understanding of the mineralisation and refine processing parameters, Reach recently completed two diamond drill holes to obtain core samples. These will support further metallurgical testing focused on gold recovery characteristics, physical properties, and reagent consumption, critical factors for optimising the eventual processing plant design.

Upcoming Drilling Campaign to Enhance Resource Confidence

Looking ahead, Reach plans to commence approximately 5,000 metres of reverse circulation (RC) infill and extensional drilling starting mid-November. The infill drilling targets four key areas within the current conceptual pit shells, North, Central, South, and Southeast, with the goal of converting a significant portion of low-confidence Inferred resources into the higher-confidence Indicated category. This upgrade is essential to reduce project risk and support detailed mine planning.

Extensional drilling will focus on areas adjacent to the pit shells where quartz veining and historical gold workings have been mapped but remain undrilled. Recent geological and geophysical work has also identified multiple high-priority targets near the Blue Heaven resource, which will be subject to targeted surface sampling to guide future exploration efforts.

Corporate and Financial Position

On the corporate front, Reach Resources maintains a solid cash position of $2.482 million as of 30 September 2025, supporting ongoing exploration and development activities. The company reported $0.412 million in exploration and evaluation expenditure during the quarter, primarily related to tenement costs and reconnaissance programs. Payments to related parties, including directors’ fees, amounted to $47,000.

No material events have occurred since the quarter’s end, and the company continues to engage with key stakeholders and regulatory bodies to advance mining approvals. The next phases of drilling and metallurgical testing will be critical in shaping the project’s feasibility and timeline.