Highlights

  • Reach Resources shares rose 11.11% on 9 April 2026 following a positive mining update.
  • Blue Heaven Mineral Resource increased ~30% to 80,000 ounces of gold
  • Resource stands at 844kt @ 3.0g/t Au from surface
  • Indicated resource accounts for ~62.8% of total resource
  • Metallurgical testwork indicates 95% gold recovery
  • Mineralisation remains open along strike and at depth

Reach Resources Ltd (ASX:RR1) shares climbed 11.11% to AUD 0.010 during trading on 9 April 2026, with the move coinciding with the release of an updated Mineral Resource Estimate (MRE) for the Blue Heaven deposit at its Murchison South Gold Project in Western Australia. The latest update outlines a notable increase in contained gold and improved grade, reflecting the outcomes of recent drilling and ongoing project evaluation.

Reach Resources Limited is an exploration and development company focused on advancing its gold assets in Western Australia. Its Murchison South Project, located near Payne’s Find approximately 340 kilometres north-northeast of Perth, sits within a region with a long history of gold mining. The Blue Heaven deposit forms a key component of this project and is positioned within a granted mining lease, offering proximity to established infrastructure including the Great Northern Highway and nearby processing facilities.

Resource Growth and Grade Improvement

The updated Mineral Resource Estimate for Blue Heaven reports a total of 844,000 tonnes at an average grade of 3.0 grams per tonne gold, equating to 80,000 ounces. This represents an increase of approximately 30% in contained gold compared to the previous estimate.

The resource is divided into Indicated and Inferred categories. The Indicated component accounts for 530,000 tonnes at 2.6g/t gold, containing 45,000 ounces, while the Inferred resource comprises 314,000 tonnes at 3.5g/t gold, containing 35,000 ounces. The Indicated category represents roughly 62.8% of the total resource, reflecting areas with higher geological confidence supported by closer drill spacing.

Importantly, the mineralisation begins from surface, which supports the potential for open-pit mining methods. The resource remains open along strike and at depth, indicating scope for further expansion through additional drilling.

Drilling Drives Resource Expansion

The updated MRE incorporates approximately 5,200 metres of reverse circulation (RC) drilling completed in late 2025. A total of 48 drill holes were completed using a truck-mounted rig, with downhole surveying conducted at regular intervals to ensure accuracy.

Drilling was designed to improve geological understanding and extend mineralisation, with hole orientations targeting known structures. The results contributed to both an increase in resource size and a refinement of geological models used in estimation.

Sampling was conducted at one-metre intervals, producing approximately 2.5-kilogram samples for analysis. A total of 5,836 samples were assayed for gold using fire assay methods, alongside additional multi-element analysis. Sample preparation and analysis were undertaken at Intertek laboratories in Perth using standard industry techniques.

The updated dataset enabled revisions to geological domains and contributed to improved confidence in resource classification.

Geological Setting and Mineralisation

The Blue Heaven deposit is hosted within Archean greenstone rocks comprising basaltic and dacitic metavolcanic sequences, along with banded iron formations and ultramafic schists. These units are intruded by granitoids and exhibit varying degrees of metamorphism.

Gold mineralisation is primarily associated with quartz veins hosted within gneissic rocks. These veins are aligned broadly north-south, parallel to regional foliation, and dip steeply to the west. Mineralised zones are relatively narrow, typically up to two metres in width, with limited alteration.

High-grade shoots have been identified along strike, extending for up to 10 metres in some cases. Additional mineralisation occurs along sheared contacts between different rock units, further contributing to the overall resource.

The geological interpretation has been updated using both recent and historical drilling data, along with geophysical and mapping information. Seven lithological domains have been modelled across the deposit area, with particular attention given to the distribution of pegmatite intrusions and their relationship to mineralisation.

Estimation Methodology and Validation

The Mineral Resource Estimate was completed using Ordinary Kriging applied to one-metre composite samples within a block model framework. The model utilised parent block dimensions of 5m by 10m by 10m, with sub-celling to capture geological boundaries accurately.

Separate variogram models were developed for oxide and fresh material domains, accounting for variations in mineralisation geometry. The estimation process involved multiple passes to ensure appropriate data weighting and continuity.

Validation of the model included visual comparisons, statistical checks, and swath plots to confirm consistency between input data and estimated outputs. Bulk density values were applied based on historical measurements, with different densities assigned to oxide, transitional, and fresh material.

Mining Considerations and Economic Context

The resource has been constrained within an optimised open-pit shell based on a gold price assumption of A$4,500 per ounce and a cut-off grade of 0.5g/t gold. These parameters are used to demonstrate reasonable prospects for eventual economic extraction.

The current spot gold price of approximately A$6,500 per ounce is higher than the price used in the optimisation, highlighting a difference between market conditions and the assumptions applied in the resource model.

Metallurgical testwork completed to date indicates an overall gold recovery of 95%, supporting the processing characteristics of the deposit. Additional metallurgical studies are expected to further refine these parameters.

The project benefits from its location on a granted mining lease, which may facilitate potential development activities. Access to infrastructure, including transport routes and nearby processing options, forms part of the broader project context.

Ongoing Work and Development Pathway

Reach Resources continues to progress the Blue Heaven deposit as part of its broader Murchison South Project. The company is engaged in discussions with third-party operators regarding potential processing arrangements.

Further work is expected to focus on expanding the resource through additional drilling, particularly in areas where mineralisation remains open. Geological modelling and data integration will continue to support resource updates and development planning.

The combination of resource growth, metallurgical performance, and infrastructure access contributes to the ongoing evaluation of the project.

What This Means for Investors?

The updated Mineral Resource Estimate at Blue Heaven reflects an increase in contained gold and an improvement in grade, supported by recent drilling and updated geological modelling. The presence of mineralisation from surface, along with a significant proportion classified as Indicated, provides a foundation for further evaluation.

The expansion of the resource and the outlined project characteristics align with the share price movement observed on 9 April 2026, as investors respond to developments that enhance the scale and definition of the deposit.