Reach Resources has appointed a global mining technical services firm to independently review the expansion potential of its Murchison South gold project in Western Australia’s Mid West region and to prioritise its targets for a new-year drilling campaign.
As a priority, Mining Plus will also interrogate infill drill targets and validate historical data from Reach’s Murchison South project.
The external review will follow Reach’s own review that identified substantial potential and highlighted immediate drilling opportunities at the Murchison South project.
Reach is now planning a 12-hole reverse circulation (RC) drilling program at the site, which was formerly known as the Primrose project.
Reach’s review identified key targets and new opportunities at the project and produced an updated geological model challenging the previously interpreted position of the Primrose fault.
The amended interpretation opens the western flank of its Blue Heaven prospect to further exploration, the company says.
It now believes the fault’s position to be crucial in the gold distribution that occurred across its grounds.
Considering the continued strength of the gold price, currently at more than $4200 per ounce, management will push forward with plans to define high-grade zones of gold that can present viable open-pit mining opportunities.
The drilling program will aim to confirm previous structural interpretations and focus on known high-grade areas revealed from previous campaigns.
Mining Plus recommended Reach proceed with the planned 12-hole RC drilling to test shallow targets, with the majority plunging to a depth of 60m to 80m.
It will review the priority of the infill drill targets and validate historical drill data that has outlined several high-grade zones remaining open at depth and along strike.
The drill program is planned to begin on January 6.
Reach Resources CEO Jeremy Bower said: “The strategic review of our Murchison South gold project is gaining momentum. After conducting an extensive internal review, it is crucial we now seek independent confirmation of our findings, including the identification of additional opportunities at the project. Mining Plus has recommended that we proceed with a targeted drill program, which we plan to commence in early January 2025.”
Bower said the company is working with various local parties to gain a better understanding of processing opportunities within the area.
Several gold mills are within trucking distance of the project, providing Reach with the opportunity to monetise its asset at today’s roaring gold price. Gold is trading more than 30 per cent higher than it was at the beginning of the year.
The Murchison South project sits near Paynes Find, which is about 430km northeast of Perth.
The site contains an inferred mineral resource of 1.035 million tonnes at 3.2 grams per tonne (g/t) gold for 105,000 ounces and includes a higher-grade component of 582,000t at 4.7g/t gold for 87,000 ounces.
Gold in the region has an interesting history, dating back to its discovery in 1911 by Thomas Payne, who pegged the first lease.
Activity in the region increased in the late 1930s with about 500 people prospecting or mining gold in the area.
Historic reports indicate 69,000t of ore was mined from 1911 to 1982, producing 63,000 ounces of gold at an average grade of 25g/t.
If Reach can expand its gold resource with further exploration and achieve anywhere near those historic grades, it could potentially have a golden period ahead.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Craig Nolan
