Reach Resources has reported high-grade gold assays up to 31 g/t Au from rock chip sampling outside its current resource at Murchison South, highlighting promising targets for resource expansion.
- High-grade gold assays up to 31 g/t Au outside current Mineral Resource Estimate
- Five anomalous zones identified aligning with structural and geophysical targets
- Sampling focused on areas around Jacamar, Shamrock, and Pansy deposits
- Plans underway to update Mineral Resource Estimate and complete Scoping Study
- Project benefits from nearby infrastructure including toll treatment mill and roadhouse facilities
Exploration Breakthrough at Murchison South
Reach Resources Limited (ASX:RR1) has announced encouraging results from its recent rock chip sampling program at the Murchison South Gold Project near Payne’s Find in Western Australia. The assays revealed gold concentrations reaching as high as 31 grams per tonne (g/t) outside the boundaries of the current Mineral Resource Estimate (MRE), signaling potential for significant resource growth.
The sampling targeted geological and geophysical anomalies identified through detailed analysis of subsurface faults and quartz vein outcrops. These efforts uncovered five standout anomalous zones, notably around the Jacamar and Shamrock deposits as well as the Pansy pits, which align closely with the regionally significant Primrose Shear structural feature. This alignment strengthens the geological case for further exploration and resource expansion.
Strategic Sampling and Geological Context
The program collected 284 rock chip samples on a systematic grid, focusing on exposed bedrock areas across three mining leases. The approach was designed to complement last December’s reverse circulation drilling campaign and to refine drill targets beyond the current resource footprint. CEO Jeremy Bower highlighted the use of geophysical imagery combined with surface mapping to identify drill-ready targets, emphasizing the unbiased nature of the sampling grid.
Geologically, the Murchison South project sits within Archean greenstone belts, with gold mineralisation associated with quartz veins along contacts between tonalite gneiss and mafic-ultramafic units. The mineralisation extends from surface to depths of around 180 metres, offering a shallow, low-capital-expenditure mining opportunity. The project benefits from proximity to a toll treatment mill and established infrastructure including a roadhouse with accommodation and an airstrip, facilitating potential fly-in/fly-out operations.
Next Steps and Market Implications
Reach Resources is progressing an update to the MRE incorporating recent drilling and sampling results, with Mining Plus engaged to deliver an updated block model. Concurrently, a Scoping Study is underway to assess the project’s economic viability, alongside ongoing discussions with mining contractors and processing operators. These developments are critical milestones that could unlock value and attract investment interest.
While the rock chip assays provide compelling early indications, it is important to note that such samples are selective and do not guarantee continuity of mineralisation. Investors will be watching closely for the forthcoming resource update and Scoping Study outcomes to better understand the scale and economics of the potential resource expansion.
Bottom Line?
The high-grade assays at Murchison South set the stage for a pivotal resource update that could reshape Reach Resources’ growth trajectory.
Questions in the middle?
- How will the updated Mineral Resource Estimate quantify the extent of new mineralisation?
- What economic parameters will the upcoming Scoping Study reveal about project viability?
- How might ongoing contractor and processor negotiations influence development timelines?