Reach Resources Uncovers New Gold Opportunities at Murchison South Project

Gold Resources Double as Second Deposit Confirmed

Reach Resources Limited (ASX: RR1) has significantly strengthened its gold asset portfolio with the announcement of a second mineral resource estimate at its Murchison South Gold Project in Western Australia. The company now controls 67,100 ounces of gold across two deposits, presenting a compelling opportunity in today's robust gold market where prices hover around A$5,000/oz – well above the A$3,500/oz used for economic modelling.

The quarter saw Reach confirm a new resource at Pansy Pit, which complements the previously announced Blue Heaven deposit. The Reach Resources Murchison South Gold Project benefits from key advantages:

• Near-surface mineralisation starting from ground level
• High-grade gold averaging 2.5-2.8 g/t across both deposits
• Exceptional metallurgical recoveries of 97% at Blue Heaven
• Strategic location on granted mining leases along the Great Northern Highway
• Expansion potential along the 4km Primrose Fault corridor

With $3.27 million in cash as of June 30, 2025, Reach is well-positioned to advance its gold assets while gold antimony discoveries and prices remain at historical highs.

Twin Gold Deposits Provide Strong Foundation

The Reach Resources Murchison South Gold Project now boasts two complementary gold deposits with similar characteristics:

The Blue Heaven deposit provides the backbone of the resource, with over 65% classified in the higher-confidence Indicated category. This positions the company well for potential conversion to reserves in future studies.

Meanwhile, the recently announced Pansy Pit resource is based entirely on historical drilling to just 60m depth. This suggests significant upside potential with modern exploration techniques, particularly as the mineralisation remains open along strike and at depth.

Understanding "Open Along Strike" in Gold Exploration

When a company reports that gold mineralisation is "open along strike," this is a significant technical indicator that investors should understand.

In geological terms, "strike" refers to the horizontal direction or trend of a rock unit or mineralised zone. When mineralisation is described as "open along strike," it means that drill holes at the edge of the currently defined resource have still encountered gold mineralisation, suggesting the deposit likely extends further in that direction.

For investors, this is important because:

1. Resource expansion potential exists without needing to drill deeper (which is typically more expensive)
2. Near-surface extensions are often more economical to mine
3. Drilling along strike is generally cheaper and more straightforward than deeper drilling

At both Blue Heaven and Pansy Pit, the mineralisation remains open along strike and at depth, indicating that the current 67,100 ounces might represent just the beginning of the resource potential at the Reach Resources Murchison South Gold Project.

Strong Metallurgical Results Point to Processing Advantages

One standout aspect of the Blue Heaven deposit is its exceptional metallurgical performance. Test work conducted by independent laboratory Nagrom showed an average gold production soars recovery of 97% across all sample types, including high-grade, low-grade, and oxide material.

This high recovery rate has significant implications for project economics:

These results indicate the gold is "free-milling" and likely amenable to conventional processing methods without requiring specialised or expensive treatment. In practical terms, this means Reach Resources could potentially:

1. Process ore through existing facilities in the region
2. Design a simpler, more cost-effective processing plant
3. Achieve higher gold recoveries than many comparable projects

With gold prices at A$5,000/oz – approximately 43% higher than the A$3,500/oz used in resource modelling – the project's economic potential appears increasingly robust.

Strategic Expansion Targets Identified

Beyond the existing resources, Mining Plus has identified several high-priority exploration targets along the Primrose Fault that could substantially increase the project's gold inventory:

1. Pansy North: Located along strike from Pansy Pit with mapped quartz veins
2. Jacamar: Northern extension with significant surface indicators
3. Shamrock: Southern extension of the mineralised system

These targets benefit from being located within already granted mining leases, simplifying the pathway to development if copper gold discovery exploration proves successful.

"The Pansy Pit MRE is based on historical drilling to 60m depth only, as the Company has not undertaken any exploration or extensional drilling at this deposit as yet. Therefore, the mineralisation is open at depth and also along the strike both north and south." – Reach Resources

This statement highlights that the current resource is based only on shallow historical drilling, suggesting modern exploration techniques could significantly enhance the resource base.

Investment Case: Why Reach Resources Merits Attention

Reach Resources presents a compelling investment case based on several key factors:

1. Established Gold Resource Base

• 67,100 ounces across two deposits at the Reach Resources Murchison South Gold Project
• High-grade mineralisation averaging 2.8 g/t gold
• Near-surface resources suitable for open-pit mining

2. Strong Gold Market Tailwinds

• Current gold price (~A$5,000/oz) significantly above the A$3,500/oz used in resource modelling
• 43% potential upside to economic assumptions

3. Technical Advantages

• Exceptional metallurgy with 97% gold recovery
• Granted mining leases reducing development timeline
• Strategic location along Great Northern Highway

4. Exploration Upside

• Multiple identified targets along 4km of the Primrose Fault
• Resources open in multiple directions
• Historical drilling only to limited depths

5. Strong Financial Position

• $3.27 million cash position as of June 30, 2025
• Low quarterly burn rate
• Additional potential for resource portfolio warroora deferred consideration from previous asset sales

For gold investors seeking exposure to a junior developer with near-term production potential, the Reach Resources Murchison South Gold Project offers a compelling mix of established resources, high-quality assets, and significant north cobar copper gold exploration upside in a premier mining jurisdiction.

The combination of high-grade gold, exceptional metallurgy, and a strong gold price environment positions the company well to advance its Murchison South Gold Project toward development milestones in the coming quarters.

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