Reach Resources has significantly bolstered its gold exploration efforts in the Murchison region of Western Australia by securing a second mining lease. This new lease integrates the East Daffodil gold deposit with existing operations near Payne’s Find, enhancing the company’s strategic position as gold prices remain strong.
The newly granted lease connects the East Daffodil deposit with Reach’s Pansy Pit lease, which already contains an inferred resource of 72,000 tonnes at 2.5 grams per tonne (g/t), amounting to 5,800 ounces of gold. Positioned alongside the historic Shamrock and Daffodil open pits, this area is part of the Primrose Fault, a key gold-bearing structure in the region. Both East Daffodil and Pansy Pit provide promising opportunities for further development.
Potential for Growth and Development
East Daffodil is especially noteworthy as a high-priority growth target. Limited shallow drilling has taken place, with the deepest hole reaching just 29 metres. This presents an opportunity for substantial resource expansion. The newly acquired lease is also located immediately southeast of Reach’s Blue Heaven deposit, which is currently the company’s focus for development. Blue Heaven boasts a solid resource of 681,000 tonnes at 2.8 g/t, equating to over 61,000 ounces of gold. The gold-bearing system here has been traced down to 200 metres below the surface, indicating significant growth potential.
With multiple mineralised zones now under its control, Reach can explore various development strategies rather than being confined to a single approach. The project’s advantageous location enhances its viability, as it is situated within a kilometre of the Great Northern Highway and has access to a nearby accommodation facility and toll treatment plant, currently undergoing refurbishment, about 75 kilometres away.
Forthcoming Updates and Strategic Decisions
The timing of this new lease acquisition aligns well with the current surge in gold prices. Reach Resources anticipates a steady stream of updates in the near future, including metallurgy results, reverse circulation drilling outcomes, and rock chip sampling results. Notably, rock chips collected in December 2023 are expected to provide initial insights into surface gold and the abundant quartz veins present in the area, potentially informing the next phase of drilling.
These forthcoming results will contribute to an updated mineral resource estimate and the completion of a scoping study. Management considers these milestones crucial for shaping future development decisions. As gold prices remain stable and the company steadily navigates technical and permitting challenges, the second mining lease not only expands Reach’s operational map but also enhances the scale, flexibility, and long-term value of the Murchison South gold project.
With this strategic move, Reach is positioned to potentially establish two viable mining centres, setting a strong foundation as it moves into 2026 with optimistic momentum.
