Reach Resources Limited has commenced a ~5,200-metre grade control drill program at the proposed NW Pit within the Murchison South Gold Project near Payne's Find, Western Australia.

The program comprises approximately 200 reverse circulation drill holes arranged on a 10-metre by 10-metre grid, targeting the first five proposed mining benches from surface. The work is designed to provide detailed information for mine scheduling and development by SMS Mining Pty Ltd, a subsidiary of Andel Resources Pty Ltd.

The drilling follows Andel Resources completing due diligence and entering into a binding Right to Mine Agreement for the project. Under the agreement, Andel holds a 50/50 net project profit share and is fully funding upfront pre-mining, mining, haulage, and processing costs.

The Murchison South Gold Project includes the Blue Heaven deposit, which holds a Mineral Resource Estimate of 80,000 ounces of gold at 3.0 grams per tonne. By comparison, previous drilling at the project comprised 48 holes for 5,281 metres targeting resource conversion on a broader pattern, whereas the current grade control program applies a denser spacing to evaluate the initial benches.

The NW Pit forms part of a three-pit open cut mine plan currently being progressed by Andel through internal pit optimisation processes. These conceptual pit shells are not based on a scoping, pre-feasibility, or feasibility study, and do not constitute an ASX-defined production target.

"We are moving directly to grade control drilling at the NW Pit based on Andel's mine pit designs, providing another demonstration of our partner's confidence in the Project. Andel's mine engineers have identified three pits for the proposed first-stage mine plan, which is expected to be finalised in the coming weeks. The initial focus will be on the NW Pit as the proposed starter pit."

— Jeremy Bower, Chief Executive Officer

Reach Resources expects to finalise the first-stage mine plan identifying the three pits in the coming weeks. The company is working towards a potential commencement of mining in early 2027, subject to the approval of the Mining Proposal and the receipt of all other required regulatory approvals.

Read the full announcement: Grade Control Drill Program Commenced - Murchison South