Reach Resources has announced promising assay results from its latest drilling at the Blue Heaven deposit, revealing multiple high-grade gold lodes extending beyond historic workings and current resource boundaries. These findings bolster the potential for resource expansion and underpin plans for updated mining studies.
- Multiple new high-grade gold lodes confirmed at Blue Heaven deposit
- Gold mineralisation extends along strike, at depth, and beneath historic workings
- Mineralisation found both inside and outside current conceptual pit shells
- Updated Mineral Resource Estimate and mine planning underway
- Project positioned as a low capex, shallow open pit opportunity near Payne’s Find
Drilling Success at Blue Heaven
Reach Resources Limited (ASX: RR1) has reported encouraging assay results from a 48-hole reverse circulation drilling program at its Murchison South Gold Project in Western Australia. The program, completed in December 2025, targeted the Blue Heaven deposit within the proposed Roadhouse Project Zone and successfully intersected multiple new high-grade gold lodes. These results confirm that gold mineralisation extends not only along strike and at depth but also beneath and between historic workings that had previously gone untested.
Expanding the Resource Envelope
The drilling has demonstrated mineralisation continuity both within existing conceptual pit shells and beyond their boundaries, enhancing the potential for resource expansion. Notable intercepts include intervals such as 21 metres at 1.4 grams per tonne gold from 92 metres depth, including a high-grade 1 metre section grading 19 grams per tonne. These findings suggest that the mineralised system is more extensive than previously modelled, offering new opportunities to increase the project's gold inventory.
Geological Context and Project Advantages
The Murchison South project sits within the Youanmi Terrane, a well-known greenstone belt hosting significant gold deposits. Mineralisation is associated with quartz veins along the contact zones of tonalite gneiss and mafic-ultramafic packages, controlled by major shear zones such as the Primrose and Daffodil Shears. The project benefits from its proximity to infrastructure, including the Great Northern Highway, a nearby toll treatment mill under refurbishment, and an on-site roadhouse with accommodation and an airstrip, facilitating potential fly-in/fly-out operations.
Next Steps and Market Implications
Mining Plus consultants are currently incorporating the latest drilling results into an updated Mineral Resource Estimate, which will inform pit optimisation and mine planning. The company is also progressing a Scoping Study and continuing discussions with mining contractors and processing operators. With a current resource estimate of approximately 61,300 ounces at Blue Heaven and additional ounces at nearby Pansy, these new results could significantly enhance the project's economics and attractiveness to investors.
Strategic Outlook
CEO Jeremy Bower emphasised the confidence in the geological model and the opportunity to expand resources across the project area, including southern mining leases yet to be drilled. The combination of high-grade intercepts and shallow, open-pit mining potential positions Murchison South as a compelling development prospect in a region active with major mining players.
Bottom Line?
With high-grade extensions confirmed, Reach Resources is poised to redefine the scale and scope of its Murchison South gold project.
Questions in the middle?
- How will the updated Mineral Resource Estimate impact the project's valuation and mine plan?
- What timelines are expected for the completion of the Scoping Study and potential development decisions?
- How might ongoing discussions with toll treatment operators and contractors influence project economics?