Reach Resources Limited (ASX:RR1): How Murchison South Drilling Is Shaping Mine Planning

Aditi Sarkar

28 October 2026 03:52 PM AEDT

Reach Resources Limited (ASX:RR1): How Murchison South Drilling Is Shaping Mine Planning

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Highlights

Grade control assays refine the planned north-west pit at Murchison South.
One reported intercept returned 7 metres at 7.5 grams per tonne gold.
A binding agreement assigns planned Mining and processing work to a project partner.
Remaining assay results and detailed mine scheduling are outstanding.
FY26 financial results underline the distinction between exploration activity and gold production.

Reach Resources Limited (ASX:RR1) is a Perth-based mineral exploration and development company focused on its Murchison South Gold Project near Payne’s Find in Western Australia. Its latest grade control programme at the proposed north-west pit is supplying detailed information for the first mining benches. Results released on 27 October 2026 follow a binding arrangement with Andel Resources, under which a Subsidiary is expected to undertake the mining work.

Grade Control Results Refine the Pit Model

Reach Resources (ASX:RR1) reported results for approximately 123 holes from a 163-hole reverse circulation programme covering about 4,236 metres. The holes were drilled on a 10-metre by 10-metre grid across the first five proposed benches, compared with the wider spacing used to establish the existing resource model.

The reported intervals included 7 metres at 7.5 grams per tonne gold from 20 metres, including 2 metres at 24.6 grams per tonne. Another interval returned 15 metres at 2.2 grams per tonne from 2 metres. These downhole assays help distinguish proposed ore from waste in short-term planning; they do not themselves constitute a new ore reserve.

The closer-spaced drilling indicated some wider and higher-grade zones than previously modelled. Results for roughly 40 holes were still pending when the announcement was issued, so interpretations of the first benches remain subject to the outstanding assays and subsequent estimation work.

Mining Arrangements and Resource Base

In August 2026, Reach Resources (ASX:RR1) said Andel Resources had exercised its option and completed due diligence, making the Right to Mine arrangement binding. Andel’s subsidiary SMS Mining is expected to undertake mining, with ore to be processed at the nearby Kirkalocka Mill.

The Blue Heaven deposit has a reported Mineral Resource of 844,000 tonnes at 3.0 grams per tonne for 80,000 ounces of gold. Pansy contributes a further 5,800 ounces. These are mineral resource estimates, rather than guarantees of economically recoverable production.

FY26 Financial Position and Execution Risks

Reach Resources (ASX:RR1) reported a net loss after tax of A$4,440,751 for FY26 and cash of A$4,531,511 at 30 June 2026, alongside A$2,000,000 in term deposits. An A$2,000,000 option fee from Andel was recorded as a Liability at year-end rather than operating revenue. The company had not commenced gold production and therefore had no mining sales to report.

The June-quarter Appendix 5B showed A$6,531,000 of cash and an indicative funding period of 98.95 quarters. That unusually long calculation reflected low relevant outgoings during the quarter, influenced by a tax receipt, and should not be treated as a reliable measure of the entire development funding requirement.

The immediate operational questions concern the remaining assays, detailed pit design, mining schedules and the partner’s delivery timetable. Reported intercept lengths are not necessarily true mineralised widths. Project outcomes also depend on costs, processing performance, approvals and gold-market conditions.

Upcoming Project Milestones

Reach Resources (ASX:RR1) anticipated the outstanding grade control assay results in November 2026. Its September-quarter cash-flow report will provide another funding reference point, while the company’s stated expectation remains for mining to begin in 2027. Subsequent disclosures can clarify how grade control interpretation is incorporated into the final schedule.

Key Insights

Murchison South has progressed from resource definition toward mine-level planning, but the distinction between drilling results and operating performance remains important. The 2026 grade control programme provides more local detail for selective mining, while contractual execution and future cash-flow disclosures will establish how the project develops beyond the current technical work.

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