Reach Resources Moves Into Step-Out Drilling Targeting Untested SE Gold Workings
Key Takeaways
- Reach Resources completed 163 RC holes for approximately 4,238m on a tight 10m x 10m grid at the NW Pit, with grade control assay results expected in early October 2026.
- A 24-hole, ~2,000m step-out expansion programme commenced immediately after grade control wrapped, targeting Primrose Shear extensions and a south-east zone of historical gold workings that has never previously been drill tested.
- The south-east old workings target sits outside the current Mineral Resource Estimate boundary, meaning positive results could directly expand the project's resource footprint.
- Mine planning and scheduling work is being progressed by SMS Mining Pty Ltd, a subsidiary of Andel Resources, with the Kirkalocka Process Plant identified as a potential processing pathway if the resource grows.
- Step-out assay results are expected in late November 2026, representing the most significant near-term catalyst for potential MRE growth at Murchison South.
Grade control complete, step-out drilling now underway at Murchison South
Reach Resources (ASX: RR1) has completed its grade control (GC) drill programme at the proposed NW Pit within the Murchison South Gold Project near Payne’s Find, Western Australia, and moved immediately into a step-out expansion programme. There was no pause between phases, with the step-out commencing as the GC programme wrapped in early September, reflecting the ongoing momentum under the company’s partnership with Andel Resources.
The GC programme delivered 163 reverse circulation (RC) holes drilled for approximately 4,238m on a tight 10m x 10m grid pattern. The original planned total of 5,200m was not reached due to old workings in the area making it unsafe to drill in certain locations, though the company confirmed this did not impact the programme’s objectives — sufficient holes were completed to cover affected areas. Samples have been dispatched to the laboratory, with assay results expected to be reported to the market in early October.
The step-out expansion programme now underway comprises approximately 24 RC holes for a total of ~2,000m, with drilling targeted for completion by early October and assay results expected in late November.
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What the step-out programme is targeting
The step-out programme has two distinct targets, each with different geological significance:
Target 1 — Primrose Shear extensions:
- Up and down strike extensions of the Primrose Shear beyond the currently proposed pits
- The Primrose Shear is described by the company as the “major gold feeder structure” at Murchison South
The current step-out programme builds on a series of earlier findings, with gold opportunities at Murchison South having come into sharper focus through preceding work that helped define the Primrose Shear as the project’s primary structural host.
Target 2 — South-east old gold workings:
- A dense concentration of historical gold workings located to the south-east of the proposed pits
- This area has not previously been drill tested, making it a genuinely untested target explicitly identified as such in the announcement
- Located outside the current Mineral Resource Estimate (MRE) boundary
It is important to note that the pit shells referenced in Figure 1 of the announcement are conceptual only. They are derived from Andel’s internal mine pit optimisation process, are not based on a scoping, pre-feasibility, or feasibility study, and do not constitute a production target for the purposes of the ASX Listing Rules.
Jeremy Bower, CEO
“With grade control drilling now complete at the NW Pit, we have moved straight into a step out program designed to test the extensions of the Primrose Shear and in particular test a concentrated area of old gold workings which lie outside of the current MRE and to the south-east of our current proposed pits…”
Understanding grade control drilling and why it matters for mine planning
Grade control drilling is not exploration drilling. Where exploration drilling aims to discover mineralisation and establish a resource estimate across a broad area, GC drilling operates at a much tighter scale, mapping the precise distribution of gold grades across planned mining benches.
The 10m x 10m grid spacing used at the NW Pit is significantly tighter than typical exploration programmes. That density is deliberate — it provides the high-resolution data needed to schedule which blocks of ore get mined, in what order, and at what grade, rather than working from broader resource estimates alone.
At Murchison South, the GC data feeds directly into mine planning and scheduling work being progressed by SMS Mining Pty Ltd, a subsidiary of Andel Resources. Completing this programme moves the project meaningfully closer to production readiness. The company’s existing agreement with Andel also references the Kirkalocka Process Plant as a potential processing pathway for Murchison South mineralisation if the resource grows.
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Key milestones and what investors should watch
The upcoming catalyst schedule for Murchison South is clearly defined, with three distinct events across the coming months.
| Milestone | Programme | Expected Timing | Significance |
|---|---|---|---|
| GC assay results reported | NW Pit Grade Control | Early October 2026 | Informs mine planning at NW Pit |
| Step-out drilling completed | Primrose Shear / SE workings | Early October 2026 | Tests resource footprint extensions |
| Step-out assay results | Step-out expansion programme | Late November 2026 | Potential MRE growth signal |
Assay results from both programmes are pending, and their outcomes remain unknown at this stage. Beyond Murchison South, Reach Resources holds a strategic shareholding in ASX-listed Delta Lithium (ASX: DLI), providing exposure to Delta Lithium’s portfolio of Australian lithium projects, and an investment in REEcycle Inc., a company that has developed a patented technology for recycling rare earth elements from permanent magnets used in electric vehicles, wind turbines, and other applications.
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