Reach Resources Completes 5,281m Drilling and Expands Tenure at Murchison South
Reach Resources has completed a significant drilling program at its Murchison South Gold Project and secured two new mining leases, setting the stage for enhanced resource confidence and potential open-pit development.
- 5,281m infill and extensional RC drilling completed
- 48 holes drilled targeting priority pit-scale zones
- Two new mining leases granted expanding development options
- Assay results expected in February to guide mine planning
- Company holds $1.578 million cash with ongoing scoping studies
Drilling Advances Resource Confidence
Reach Resources Limited (ASX, RR1) has successfully completed a 5,281-metre reverse circulation (RC) drilling program at its wholly owned Murchison South Gold Project near Paynes Find in Western Australia. The 48-hole campaign focused on infill and extensional drilling within and adjacent to conceptual pit shells, aiming to upgrade a significant portion of the project's Inferred Resources to the higher-confidence Indicated category. This upgrade is crucial for advancing the project towards potential open-pit mining operations.
The drilling targeted priority zones across multiple prospects, including Blue Heaven, Jacamar, Pansy, Shamrock, and East Daffodil. Alongside the drilling, rock chip sampling was conducted to better understand mineralisation along quartz vein systems and historic workings. Assay results from these activities are anticipated in February and will inform the next phase of resource modelling and mine planning.
Expansion of Mining Tenure Enhances Development Optionality
In a significant tenure development, Reach Resources secured two new mining leases; ML M59/790 at Jacamar and ML M59/786 at East Daffodil. These leases expand the company's footprint along the Primrose Fault and directly along strike from the Blue Heaven Mineral Resource Estimate (MRE), which currently stands at 681,000 tonnes at 2.8 grams per tonne gold for approximately 61,300 ounces, with 61% classified as Indicated.
The Jacamar lease is particularly notable for its historical gold production and promising drill results from previous shallow RC programs. The granted leases, located adjacent to the Great Northern Highway, provide strategic access and flexibility for future mining operations, potentially unlocking multiple gold systems within the project area.
Ongoing Technical and Financial Progress
Alongside exploration, Reach Resources is advancing a scoping study encompassing hydrology, hydrogeology, waste characterisation, and engineering design. The company is also engaging with potential downstream service and processing providers to support future development phases.
Financially, Reach Resources reported a cash balance of $1.578 million at the end of December 2025, following $0.682 million in exploration and evaluation expenditure during the quarter. The company maintains a prudent cash management approach while progressing technical studies and awaits assay results that will be pivotal for refining mine plans and financial models.
CEO Jeremy Bower emphasised the importance of the recent drilling program in increasing geological confidence and advancing the project towards open-pit mining potential. He highlighted that the assay results will be critical in guiding the next stages of technical evaluation and mine design.
Bottom Line?
With assay results imminent and new mining leases secured, Reach Resources is poised to sharpen its development strategy at Murchison South.
Questions in the middle?
- Will assay results confirm significant upgrades from Inferred to Indicated Resources?
- How will the new mining leases influence the scale and timeline of potential mining operations?
- What are the next steps in securing downstream processing partnerships?
