Reach Resources (ASX:RR1) has acquired three prospecting licences adjacent to its Pansy and Shamrock deposits at the Murchison South Gold Project near Payne’s Find, Western Australia.
The company acquired P59/2210, P59/2408, and P59/2411 for $45,000 cash and 3.94 million shares. The licences directly adjoin the Pansy Pit mining lease and lie immediately southwest of the Shamrock deposit, enabling a larger and deeper open pit.
Geophysical imagery shows a distinct magnetic low interpreted as a felsic intrusion bounded by a greenstone contact and associated faulting.
According to Reach, this setting is similar to that which hosts gold mineralisation at Blue Heaven, Pansy, and Shamrock.
CEO Jeremy Bower says the acquisitions provide strategic control over the area surrounding the Pansy Pit, including the ability to realign the Maranalgo Road.
“These are low-cost acquisitions with a big strategic payoff,” Bower says.
“Securing this ground gives us control over the area surrounding the Pansy Pit, including the ability to realign the Maranalgo Road. This provides the flexibility to expand Pansy and design a deeper, larger pit.”
The Pansy Pit hosts an inferred mineral resource estimate of 72,000 tonnes @ 2.5 grams per tonne gold for 5,800 ounces and sits on the Primrose Shear between the Jacamar and Shamrock deposits.
According to Reach, the extent of any future open pit at Pansy is currently constrained by the alignment of the Maranalgo Road, which passes immediately adjacent to the existing pit.
Bower says the licences contain extensions of the Primrose Shear, the major gold feeder structure.
“What excites our geology team is that this is not just infrastructure ground. Geophysical imagery has identified extensions of the Primrose Shear, and mapping showing surface quartz veining, which hosts the gold at Blue Heaven,” Bower says.
The acquisitions consolidate the company’s tenure along the Primrose Shear corridor as it develops Murchison South into a multi-deposit gold project.
Reach now intends to undertake first-pass exploration to define targets for future drill testing. This includes detailed mapping and rock chip sampling of the quartz veins and interpreted contact zone.
Reach Resources is focused on advancing its flagship Murchison South Project near Payne’s Find, WA.
Write to Paula Fabe at Mining.com.au
Main image: Reach Resources
