Reach Resources has significantly bolstered its gold ambitions in Western Australia's Murchison region, securing a second key mining lease that consolidates its landholding and opens up multiple development pathways. The move comes as the gold price continues to trade at robust levels, providing a favourable backdrop for the company's expansion plans near Payne's Find.
Consolidating a Strategic Position
The newly granted mining lease incorporates the East Daffodil gold deposit into Reach's existing project area, stitching it together with the company's Pansy Pit lease. This strategic consolidation creates a more substantial and coherent land package along the highly prospective Primrose Fault, the area's principal gold-bearing structure.
The Pansy Pit lease already contains an inferred resource of 72,000 tonnes at 2.5 grams per tonne (g/t) gold, equating to 5,800 ounces. The addition of East Daffodil, which sits alongside the historic Shamrock and Daffodil open pits, presents clear upside. East Daffodil is considered a high-priority growth target, having seen only very limited and shallow drilling to date, with the deepest hole reaching a mere 29 metres.
Unlocking Development Flexibility and Scale
Reach Resources' Chief Executive Officer, Jeremy Bower, stated that the grant marks the start of an exciting period. "We now control three granted mining leases covering the most prospective portions of the Primrose Fault, giving the Company a dominant position in this highly mineralised corridor," Bower said.
The new lease sits immediately south-east of the company's near-term development focus, the Blue Heaven deposit. Blue Heaven hosts a solid resource of 681,000 tonnes at 2.8g/t for over 61,000 ounces of gold, with mineralisation intercepted down to 200 metres and clear potential for growth. With multiple mineralised zones now on granted tenure, Reach can evaluate various development scenarios rather than being committed to a single path.
Infrastructure is a major advantage for the project. It is located within a kilometre of the Great Northern Highway and has access to accommodation and a toll treatment plant approximately 75 kilometres away, which is currently undergoing refurbishment.
Catalysts on the Horizon for 2026
The timing of the lease grant appears fortuitous, aligning with strong gold markets and an impending stream of news from the company. Reach is set to announce several key results in the near term, including:
- Metallurgy results.
- Outcomes from reverse circulation drilling.
- Findings from rock chip sampling conducted in December.
The rock chip samples are particularly anticipated, as they will provide a first-pass assessment of surface gold and the abundant quartz veins in the area, potentially guiding the next phase of drilling. These results will feed into an updated mineral resource estimate and a scoping study, which management views as critical milestones for shaping future development decisions.
By securing this second mining lease, Reach Resources has done more than just expand its map. The company has materially enhanced the scale, flexibility, and long-term value of its Murchison South gold project. It also improves the potential for establishing two viable mining centres, positioning Reach strongly as it moves into 2026 with considerable momentum.
