Reach Resources (ASX:RR1) unveils high-margin gold potential at Blue Heaven

It’s not every day a junior gold explorer digs up a fresh estimate that ticks the boxes for grade, scale, recovery and, crucially, economics.

But Reach Resources (ASX:RR1) may have just done that with its updated Mineral Resource Estimate (MRE) for the Blue Heaven deposit at Murchison South.

And the punchline?

The entire 61,300-ounce resource sits from surface within a granted mining lease, adjacent to key infrastructure and, just quietly, riding a tailwind from a near-record A$5,000/oz gold price.

Independent consultant Mining Plus verified the estimate at 681,000 tonnes grading 2.8 g/t gold, with a notable kicker — 92% of those ounces sit in fresh rock at an average 3.1 g/t.

Metallurgy looks just as promising, with 97% gold recovery confirmed via bottle roll leach test work.

Highlights:

• ✅ 61,300 ounces @ 2.8 g/t Au from surface

• ✅ 92% in fresh rock, average grade 3.1 g/t

• ✅ 65% of the resource is Indicated

• ✅ Recovery rates average 97%

• ✅ Optimised pit modelled at conservative A$3,500/oz

• ✅ Sits on a granted mining lease with highway access

With a pit shell based on a conservative A$3,500/oz gold price — and today’s spot hovering around A$5,000/oz — the economic margin looks robust.

“This is an excellent result, particularly given the gold price is at record highs,” Reach Resources CEO Jeremy Bower said. “Our project is situated on a granted mining lease, next to key infrastructure and we are well positioned to advance rapidly toward development.”

The geology, too, is refreshingly uncomplicated.

The mineralisation is hosted in gneiss with tight, steeply dipping auriferous quartz veins extending along strike and at depth. It’s classic greenstone-hosted gold — but without the underground headaches.

So what’s the point of difference?

While many juniors tout high grades or blue-sky potential, Reach has something rarer — a credible development case.

The company isn’t pitching a far-flung dream, but a short-haul sprint to potential near-term cashflow.

Add to that proximity to third-party mills and the potential for toll treatment, and the numbers start to make sense.

Further upside is brewing with a separate MRE underway for the nearby Pansy Pit and ~4km of strike on the Primrose Fault yet to be properly explored.

Investors are right to be wary of juniors brandishing ounces without a pathway to production.

But Reach’s Blue Heaven resource is not only independently validated — it sits within an optimised pit, on a mining lease, next to a highway, with enviable recovery metrics.

The trick now will be execution. If Reach can leverage infrastructure access and fast-track permitting and processing, Blue Heaven might just live up to its name.

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