Reach Resources Limited has unveiled a maiden mineral resource estimate (MRE) for Blue Heaven Prospect within its flagship Primrose Gold Project, about 420 kilometres northeast of Perth, Western Australia.
A total inferred resource of 1.035 million tonnes at 3.2 g/t gold for 105,000 ounces gold has been estimated for Blue Heaven, above a nominal 1.0 g/t gold cut-off grade.
This includes a higher grade component of 582,000 tonnes at 4.7 g/t for 87,000 ounces, using a higher cut-off of 1.5 g/t.
There is potential upside for Primrose via further drilling at the Pansy Pit Prospect.
Preliminary desktop optimisation studies indicate strong potential for economic extraction of the majority of the mineral resource – about 784,000 tonnes at 3.6 g/t gold for 92,000 ounces.
The company can now pursue the monetisation of the Blue Heaven resource.
Fast track monetisation of Blue Heaven
Reach Resources chairman Robert Downey said: “We are delighted to provide the maiden gold resource to the market for the Blue Heaven Prospect, at our flagship Primrose Gold Project in Western Australia.
“Converting the company’s previously announced exploration target of approximately 170,000 to 520,000 tonnes at a grade range of 2.2 to 4.5 g/t gold into an inferred mineral resource of approximately 1.035 million tonnes at 3.2g/t gold for 105,000 ounces is a fantastic result for all of our shareholders.
“This resource allows the company to push ahead and fast track the potential monetisation of Blue Heaven."
Additional drilling at Pansy Prospect
He said: “Additionally, it provides confidence to commence additional drilling at the company’s Pansy Prospect, which lies south of the Blue Heaven Prospect, and together form the company’s Primrose Gold Project.
“It is certainly an exciting time for the company and we look forward to 2022.”
Encouraging exploration upside
Encouraging exploration upside remains at the Blue Heaven Prospect in the form of an exploration target estimated within a range of about 963,000 to 1.925 million tonnes at 2.0 to 3.2 g/t gold.
This exploration target estimate takes into consideration all the wireframed lodes below and along strike of historic shafts and stopes exposed at the surface but not intersected by drilling and not included in the mineral resource.
Additionally, the inferred mineral resource and exploration target are isolated to drilling completed at the Blue Heaven Prospect alone.
Drilling at the Pansy Pit could potentially increase the company’s resource, providing additional value to shareholders.
Further activities
It is recommended that small trial mining pits should be excavated in several high-grade areas to test whether the narrow gneiss and mafic hosted quartz veins can be selectively mined to achieve an ore that is of sufficient grade to warrant transporting to a nearby mill for toll treating and/or heap leaching on site.
Further infill and drilling along strike and at depth is recommended to improve the reliability of future resource modelling and to increase the quantity of the resources.