Reach Resources has been granted a new mining lease, M59/790, expanding its Murchison South Gold project near Payne’s Find, Western Australia (WA).
The new lease sits immediately south of the company’s Blue Heaven deposit and north of the Pansy Pit.
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The Blue Heaven deposit currently has a mineral resource estimate (MRE) of 681,000 tonnes (t) at 2.8 grams per tonne (g/t) for 61,300oz of gold. The Pansy Pit has an MRE of 72,000t at 2.5g/t for 5,800oz of gold.
The M59/790 mining lease encompasses the Jacamar deposit with historical gold-producing workings and is said to be highly prospective.
Historically, exploration has been limited to a shallow reverse circulation (RC) drilling programme comprising eight holes, with the deepest hole reaching 47m. Notably, some significant gold grades were encountered in areas in the proximity of the old workings.
Jacamar is situated along the primary gold-bearing structure, the Primrose Fault, directly south of the Blue Heaven deposit, which has yielded high-grade gold intercepts at depths of up to approximately 200m.
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By GlobalDataSince drilling at Jacamar has only reached a maximum depth of 47m, the company says there is potential to intercept gold mineralisation at greater depths.
The present rock chip sampling programme, as announced by the company on 28 October, is expected to offer an initial evaluation of surface gold mineralisation and any exposed quartz veins across the area.
The acquisition of this mining lease underscores the potential for greater scale at the Murchison South Gold project, the company stated.
This addition increases the likelihood that Reach Resources could develop two viable future mining zones, both strategically located on granted mining leases alongside the Great Northern Highway.
Reach Resources has a diversified portfolio, anchored by its flagship Murchison South Gold project.
The company is also actively advancing exploration for lithium, manganese, and rare earth elements (REE) within the resource-rich Gascoyne Mineral Field.
Additionally, Reach Resources holds an investment in a patented downstream technology which recycles rare earth elements from permanent magnets used in electric vehicles, wind turbines, hard disk drives, and MRI machines.
