In a significant move for Western Australia's gold sector, Reach Resources has commenced an ambitious 5000-metre reverse circulation drilling campaign at its South Murchison gold project near Paynes Find.
Drilling Strategy Targets Resource Upgrade
The program is strategically divided between infill and extensional drilling, with approximately 2400 metres dedicated to infill work at the company's flagship Blue Heaven deposit. This infill drilling aims to tighten spacing to elevate inferred gold material into the indicated category, a crucial step for the ongoing scoping study designed to fast-track production.
The remaining 2600 metres will pursue extensional targets, focusing on undrilled quartz veins and historic workings adjacent to four conceptual pit shells: North, Central, Southeast, and South. A notable aspect includes eleven holes planned east of the Central pit and north of the Southeast pit, targeting a dense cluster of mapped veins and old diggings that have never been drill-tested.
Pathway to Near-Term Production
A key advantage for Reach is that the Blue Heaven resource, containing 681,000 tonnes at 2.8 grams per tonne gold for 61,300 ounces, sits within an existing mining lease. This positioning opens the door for a near-term toll treating scenario, which could generate early cashflow for the company.
Simultaneously, Reach is conducting an extensive rock-chip sampling program across the Murchison South project, planning to collect up to 500 samples guided by geophysical structures and surface quartz. This includes further investigation of the Pansy pit, which recently saw its resources grow by 5800 ounces from historical data review alone.
Infrastructure and Metallurgical Advantages
The project's location is highly strategic, situated on a granted mining lease alongside the highway at Paynes Find. It lies less than 70 kilometres south of the privately-owned Kirkalocka carbon-in-leach plant, a 2 million tonne per annum facility being readied for a restart in 2026.
Reach has already begun metallurgical test work from two diamond holes drilled in October to confirm ore compatibility with Kirkalocka's oxide, transitional, and fresh ore circuits. The company reports these circuits could deliver impressive gold recoveries between 90 and 98 percent.
With gold prices recently pushing north of $6400 an ounce, Reach's conservative $3500 an ounce pit shell could be substantially expanded, potentially adding significant ounces to the project's inventory. Even a modest indicated resource upgrade could underwrite an early toll treatment operation.
The current infill program could pave the way for toll mining within weeks of receiving assays, while successful extensional hits could quickly swell the inventory available for haulage. As Reach tightens its resource confidence, it simultaneously demonstrates to larger production neighbours that it represents a viable and attractive partner.
Given the current robust gold price environment, the company would only need to mine a small portion of its current 61,000-ounce resource to generate meaningful cashflows, marking an exciting phase for the emerging gold producer.
