Reach Resources (ASX:RR1) secures new mining lease at Murchison South

Reach Resources has advanced its position in the Payne’s Find district with the granting of Mining Lease M59/790 at the 100% owned Murchison South Gold Project, adding a strategically located zone between existing resources at Blue Heaven and the Pansy Pit.

The lease covers the Jacamar gold deposit, an area hosting historical workings and shallow drilling results, and forms an important link along the Primrose Fault, a recognised structural feature associated with gold mineralisation in the region.

Highlights

• Mining Lease M59/790 granted over the Jacamar gold deposit at the 100% owned Murchison South Gold Project.

• Jacamar sits along strike of Blue Heaven (681kt @ 2.8 g/t for 61,300 oz Au) and immediately north of the Pansy Pit (72kt @ 2.5 g/t for 5,800 oz Au).

• Historical drilling returned grades up to 3.35 g/t Au, with mineralisation open at depth.

• The expanded tenure provides potential for 2 mining zones on granted leases beside the Great Northern Highway.

• Rock chip sampling underway to assess surface gold and quartz vein exposure.

The newly granted lease lies directly south of Blue Heaven, which hosts a Mineral Resource Estimate of 681kt @ 2.8 g/t for 61,300 oz Au, and directly north of the Pansy Pit, which contains 72kt @ 2.5 g/t for 5,800 oz Au.

Jacamar itself contains historical gold workings and limited modern drilling, with only 8 reverse circulation holes completed to a maximum depth of 47m, yet despite the shallow nature of this work several intervals returned grades exceeding 1 g/t Au as detailed in Table 1 of the release.

Key reported intersections include 1m @ 3.14 g/t Au from hole 22PF003, 1m @ 2.09 g/t Au from hole 22PF005, 1m @ 3.35 g/t Au from hole 22PF006 and a 2m interval averaging 1.26 g/t Au at the end of hole 22PF011.

These results, although limited in scale, demonstrate localised mineralisation immediately adjacent to historical workings and remain untested at depth.

The project map on page 2 of the announcement shows how Mining Lease M59/790 integrates into the broader Murchison South tenement package, with the Primrose Fault identified as the primary structural control running through Blue Heaven and continuing south into Jacamar.

The tenure is situated alongside major infrastructure including the Great Northern Highway and the Paynes Find roadhouse and accommodation camp.

The company notes that drilling at Blue Heaven has intercepted gold to depths of approximately 200m, whereas Jacamar has only been tested to 47m, a contrast that reflects the absence of deeper drilling rather than any defined limit to mineralisation.

The announcement states that rock chip sampling is underway and will provide a first-pass assessment of surface gold and any exposed quartz veins across the newly acquired ground.

Chief Executive Officer Jeremy Bower commented,

“The addition of this mining lease with historical gold producing workings and limited drilling showing gold intercepts, highlights the potential for greater scale at the Murchison South Gold project, providing potential the Company could have two viable future mining zones strategically located alongside the Great Northern Highway, on granted mining leases.”

The granting of M59/790 strengthens Reach Resources’ position within an established gold corridor and provides a foundation for further technical work, and with shallow intercepts, historical workings and immediate proximity to defined resources the lease broadens the scope of exploration activities across Murchison South.

Future progress will depend on outcomes from the ongoing rock chip sampling and any subsequent drilling, which will determine the potential for depth extensions and continuity at Jacamar.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.