Reach Resources (ASX:RR1) advances Murchison South with 5000m drill program to build confidence and extend gold potential

Reach Resources Limited (ASX:RR1) has announced the commencement of a 5000 metre infill and extensional drilling program at its Murchison South Gold Project near Payne’s Find, Western Australia.

The program aims to increase geological confidence, upgrade resource classification and test for new mineralisation adjacent to the current conceptual pit shells.

Chief Executive Officer Jeremy Bower outlines how the upcoming program will strengthen the company’s Scoping Study, provide critical geological insight and support ongoing exploration efforts across Murchison South.

What is the main purpose of the upcoming drilling program at Murchison South?

The upcoming reverse circulation drilling program, totalling about 5000 metres, is designed to achieve two very specific outcomes.

The first is to improve the level of confidence in the current resource by converting material that is classified as Inferred into the Indicated category.

This will occur within the conceptual pit shell areas that are currently forming part of our ongoing Scoping Study. By tightening drill spacing and improving data density, we can build a stronger understanding of how the gold mineralisation behaves across the North, Central, South and Southeast zones.

The second objective is to expand our understanding of the mineral system by testing areas immediately adjacent to the current pit shells.

These areas contain mapped quartz veining and historic gold workings but have never been drilled. Extensional drilling in these locations gives us the opportunity to identify new mineralised lodes and to determine whether mineralisation continues beyond the boundaries of the current resource model.

“This combined infill and extensional approach ensures that every metre drilled delivers value by either improving confidence or expanding potential.”

How will this program contribute to the current Scoping Study?

The Scoping Study for Murchison South is progressing well, with several technical work streams underway including hydrology, hydrogeology, waste characterisation and engineering design.

The results of the upcoming drill program will directly feed into this work and by increasing the volume of Indicated material through infill drilling, we can provide the level of geological certainty required to underpin mine design and scheduling scenarios.

At the same time, the extensional component of the drilling will test for additional mineralisation around the edges of the conceptual pit shells.

If successful, this could improve the overall shape and tonnage potential of future pit designs. Importantly, all of this work is being done to build a technically robust understanding of the deposit before moving on to any economic analysis.

The conceptual pit shells being used to guide the drilling are preliminary in nature and should not be interpreted as final mine designs or production targets.

“By increasing the volume of Indicated material through infill drilling, we can provide the level of geological certainty required to underpin mine design and scheduling scenarios.”

What geological insights have been gained from the recent diamond drilling and metallurgical work?

In October, we completed two diamond holes totalling 127 metres to provide representative core samples across different rock types and grades, this work is giving us valuable new geological insight.

The logging of the diamond core revealed two additional sets of quartz veins that differ from the main north-northwest to north-northeast trending veins historically mined in the area.

“The logging of the diamond core revealed two additional sets of quartz veins that differ from the main north-northwest to north-northeast trending veins historically mined in the area.”

One of these new vein sets is near-vertical and runs almost perpendicular to the main veins, while the other has a similar strike but dips at a much shallower angle.

These structural observations are consistent with what we have seen in surface mapping around the exposed Pansy Pit and could indicate an additional structural control on mineralisation.

The core has now been sent to Bureau Veritas in Perth, where it will be cut and used for a series of metallurgical tests designed by JT Met Services.

The test work will evaluate how the ore performs through the nearby Kirkalocka processing plant, providing important data on metallurgical recovery and processing characteristics.

What other exploration activities are being conducted alongside the drilling?

While the reverse circulation drilling is being completed, our geological team will also conduct a detailed rock chip sampling program across untested quartz veins and mapped structures that extend along strike of the Blue Heaven resource.

This work will help confirm the presence of mineralisation at surface and assess how far it continues beyond the current modelled areas.

The results of this sampling will be used to refine the design of future drill programs, ensuring we maintain a strong pipeline of targets for follow-up exploration.

In addition, the company continues to hold active discussions with key stakeholder groups, including downstream processing partners, as we progress the Scoping Study.

This coordinated approach ensures that exploration, metallurgical testing and development planning are advancing together toward the goal of understanding Murchison South’s full potential.

How does Murchison South fit within Reach Resources’ broader portfolio and strategy?

Murchison South is our lead gold project, located near Payne’s Find in Western Australia, and it is the central focus of our current exploration effort.

It provides the company with near-term exposure to gold at a time when the gold price remains strong, which supports the economic rationale for progressing the project through detailed technical studies.

At the same time, Reach Resources maintains a diversified exploration portfolio.

We have lithium, manganese and rare earth element assets in the highly prospective Gascoyne Mineral Field, and we also hold an investment in REEcycle Inc., a company with patented technology that recycles rare earth elements from permanent magnets used in electric vehicles, wind turbines and other advanced technologies.

This combination of gold development and critical mineral exposure positions Reach as a company with both near-term exploration catalysts and long-term growth opportunities in key sectors of the energy transition.

Building confidence and unlocking value

Jeremy Bower says the integrated program of drilling, surface sampling and metallurgical analysis is designed to deliver tangible outcomes that progress Murchison South toward development readiness.

“Each element of this work program —from infill drilling to metallurgical testing — is about improving confidence, defining continuity and understanding how the project could ultimately be mined and processed.”

Reach Resources continues to advance multiple work streams within its Scoping Study, with results from this drilling and sampling phase expected to underpin the next stage of project evaluation.

The company remains focused on disciplined exploration and technical excellence as it builds value across its Western Australian gold and critical minerals portfolio.

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