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Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce that binding terms sheets have been signed with two separate and non-related parties for the acquisition of four tenements highly prospective for lithium, REE and/or manganese in the Gascoyne Mineral Field, WA (Figures 1 & 2). Three of the four tenements share a boundary with existing Reach tenure which significantly increases the Company’s ability to explore entire mineral strike lengths and provides greater contiguous area for potential future development.
HIGHLIGHTS
- Four (4) tenements are being acquired for low cash consideration plus shares, and are highly prospective with known lithium, rare earth element (REE) and manganese mineralisation
- Lithium tenement (Morrissey Hill project) has widespread outcropping pegmatites, and is directly adjoining, and contains the same geology as, Red Dirt Metals’ (ASX: RDT) Yinnetharra Lithium Project (Figure 1)
Figure 1: Acquisition 1 - Morrissey Hill Lithium project and the Camel Hill REE project
- REE and Manganese tenements bordered by FMG Pilbara (ASX:FMG), Firebird Metals (ASX:FRB), and existing Reach tenure in the Gascoyne region (see Figure 2)
- Upon completion, Reach will command a significant land holding in the highly prospective Gascoyne region, providing scale, contiguity and excellent exposure
ACQUISITIONS:
➢Acquisition 1: Two tenements - Prospective for Lithium: Morrissey Hill (E09/2375) and Rare Earth Elements (REE): Camel Hill (E09/2388). Both in the Gascoyne Mineral Field, WA (Figure 1)
- Lithium tenement E09/2375 (Morrissey Hill) adjoins Red Dirt Metals’ Yinnetharra Lithium Project. RDT recently announced1 initial assay results from drill intersections including 55.6 m @ 1.12% Li2O incl. 15 m @ 1.52% Li2O from 95 m.
- Morrissey Hill historical high-grade lithium, tantalum, rubidium, cesium, niobium results from rock-chip samples include:
- 1.32% Li2O, 3.62% Ta2O5, 1,936 ppm Rb, 2,276 ppm Cs, and 1.55% Nb2O5
- Geology within E09/2375 is consistent with Red Dirt Metals’ “Goldilocks Zone” theory for occurrence of lithium-cesium-tantalum (LCT) pegmatites. Numerous outcropping pegmatites have already been mapped within E09/2375.
- In addition, results show a 5-km long lithium soil anomaly (>100 ppm Li) untested by drilling.
- REE tenement E09/2388 (Camel Hill) has historical rock-chip samples with total rare earth oxide (TREO) results of up to 1,357 ppm
- A ~3.5-km long REE soil anomaly (>500 ppm REE) untested by drilling.
- Recorded REE anomalies correspond with thorium radiometric highs.
➢Acquisition 2: Two tenements: White Castles (E09/2539 & E09/2542) prospective for manganese and REE in the Gascoyne Mineral Field, WA
- High-grade rock-chip results up to 18% MnO2.
- Multiple surface manganese outcrops over 50 km of continuous strike.
- Little to no exploration undertaken since 2010.
- Neighbours include FMG to the east, FRB to the north west and Dreadnought Resources (ASX:DRE) to the south west.
- The tenements lie within 5 km of recent anomalous REE results from Reach’s Skyline project (ASX Release 7 November 2022).
PLACEMENT:
➢The Company has received firm commitments for $2,000,000 in new equity to fund both acquisitions, pay off all debt (non-cash via share issue), conduct exploration activities and provide additional working capital
Firm commitments have been received from sophisticated and professional investors to raise $2M in cash, via a two tranche Placement to fund the acquisitions (low cash consideration plus share consideration – see section “Acquisition Summary and Terms” for full details), accelerate exploration on new and existing tenements with a focus on lithium, REE and manganese, and to provide additional working capital.
Figure 2: Acquisition 2 - White Castles Manganese project
Commenting on the acquisitions, Reach CEO Jeremy Bower said:
“We have intentionally added lithium and manganese to our critical mineral portfolio due to the exponential demand for these minerals from the electrical revolution taking over the globe. When exploring for lithium, you want three key factors: the right geology to produce evolved LCT pegmatites, visible or known lithium mineralisation and the presence of pathfinder elements such as cesium, tantalum, rubidium – Morrissey Hill has all three.
Additionally, we have a direct comparison next door at Red Dirt’s Yinnetharra project. Yinnetharra has the same geology as Morrissey Hill and recent drill results by RDT have intersected good lithium grades. This gives us a great deal of confidence as we plan an aggressive exploration program at Morrissey Hill to begin in early March.”
Further, the acquisition of the White Castles Manganese project is a strategic play for Reach providing additional critical minerals diversification. There is no substitute for manganese in the steel making process, which provides a large demand for the metal itself. However, the importance of manganese is also growing exponentially within the battery sector for use in electric vehicles. Manganese is an important component in the cathodes of the two most commonly produced types of electric vehicle (EV) batteries available today, including Li-Ion.
There is a growing push from EV and battery cathode manufacturers to increase manganese content to improve battery and electric vehicle cost competitiveness, while maintaining energy density. Manganese is therefore a strategic commodity to add to the Reach asset portfolio.
It is an exciting time for the Company, and we can’t wait to update shareholders as our exploration across all tenements ramps up over the coming months.”
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This article includes content from Reach Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
RR1:AU
Outcropping Copper Gossan Delivers 33% Cu Assays At Morrissey Hill Project, Yinnetharra
HIGHLIGHTS
- High grade copper‐oxide mineralisation (malachite) confirmed at the Company’s Morrissey Hill Project, Yinnetharra with rock chip samples reporting highly encouraging assays of up to 33.2% Cu; 0.2 g/t Au and 141.8g/t Ag. (Figure 1).
- Results follow Morrissey Hill assays of up to 2.3% Li2O (ASX Announcement 15 May 2023).
- Mineralisation at the Swallowtail Copper Prospect was mapped over a strike length of at least 150m and remains open in all directions.
- Significant results include:
- 33.2% Cu, 0.2g/t Au and 141.8g/t Ag (23RRRK0039).
- 14.7% Cu, 0.02g/t Au and 55.6g/t Ag (23RRRK0042).
- 4.2% Cu, 0.3g/t Au and 5.7g/t Ag (23RRRK0041).
- 2.3% Cu, 0. 2g/t Au and 5.0g/t Ag (23RRRK0043).
- Historical sampling 3.0km’s west of Swallowtail could potentially extend the strike with historical results returned:
- 18.5% Cu, 1.1g/t Au and 6.8g/t Ag
- 18.5% Cu, 1.1g/t Au and 6.8g/t Ag
- The rock chip results confirm the Company’s targeting methodology and the potential of the area to host significant mineralisation.
- Morrissey has never been drilled & geochemical surveys planned to commence next week.
Commenting on the results CEO Jeremy Bower said:
“The Morrissey Hill tenement at our Yinnetharra Project continues to deliver. These are outstanding copper results and in conjunction with the 2.3% Li20 announced earlier this week, it is clear how prospective the ground is. We’re focused on sourcing the critical and battery minerals of the future and copper is an important part of our strategy. Despite several world class copper‐gold and polymetallic base metal deposits in the East Capricorn Orogen, the West Capricorn and Gascoyne has been massively under‐ explored. We see this as a huge opportunity.
Importantly, we are fully funded to complete our field programs and drilling campaigns earmarked for this year. Our focus remains on thorough geochemical assessment of each target and getting drill rigs out to Morrissey Hill as soon as possible. This will mean consistent news flow for our shareholders over the coming months.”
FIGURE 3: Morrissey Hill showing location of the Swallowtail Prospect along Stringer Fault line
FIGURE 4: Regional location of Reach Yinnetharra projects
The rock chip results confirm the Company’s targeting methodology and the potential of the area to host significant mineralisation. Systematic surface geochemical surveys including soils, stream sediment and rock chip sampling are planned to commence immediately. Results from this work will guide follow up programs which if warranted may include electromagnetic geophysical surveys and drill testing of priority targets.
The results were reported from an outcropping quartz‐veined gossan, the Swallowtail Prospect, showing visible malachite (copper‐oxide) over a strike length of approximately 150m. The gossan strikes east‐ west, appears to dip steeply towards the south and remains open in both directions. A single historical sample located some 3.0km’s west of Swallowtail, and within the same structural corridor, also reported high grade copper, gold and silver assays indicating a potential strike length of the target zone in excess of 3km’s (Refer to Figure 3).
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This article includes content from Reach Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Multiple New Lithium (LCT) Pegmatite Targets Confirmed
HIGHLIGHTS
- Independent geological experts RSC consultants have identified four priority target areas for Lithium-Caesium-Tantalum (“LCT”) Pegmatites within the Company’s Critical Elements Projects, located in the centre of the rapidly developing Gascoyne “Battery Metals” Province, WA
- Each of the target areas are associated with confirmed fertile parental granites of the Thirty Three and Durlacher Supersuites and contain the same metasedimentary sequences which host Red Dirt Metals (ASX: RDT) Yinnetharra Lithium Project, less than 10 km’s to the NE of Reach Resources’ tenure
- All of the targets are defined by favourable geology, multi-element pathfinder geochemistry and the presence of mapped Geological Society of Western Australia (GSWA) Tin, Tantalum and Lithium pegmatites
- A helicopter supported field reconnaissance program has been initiated to assess the priority areas in more detail
- Drilling of priority targets is scheduled to commence in CY Q3/4 2023 once all regulatory approvals are received
CEO Jeremy Bower commented:
“RSC’s independent expert analysis confirms our belief that our landholding in the Gascoyne has the potential to host significant battery metal deposits.
Phase 1 of the assessment focused on the lithium potential at our Critical Elements Projects and has not only cemented Morrissey Hill as our primary lithium target but importantly has identified three new lithium target areas. Each of the areas are defined by the presence of a highly fertile parent granite and supported by key multi-element geochemistry including lithium, caesium, tantalum, tin and rubidium which are all well documented associations of lithium bearing “rare metal” LCT pegmatite mineral systems.
This is an exciting time for the Company and our shareholders, and we look forward to delivering updates to the market over the coming months. The Future is within Reach”.
Phase 1 of the assessment focused on the lithium potential of the Company’s Critical Elements Projects which includes the newly acquired Morrissey Hill and Camel Hill projects as well as the Wabli Creek project (Figure 1).
Figure 1: Critical Elements Projects
The assessment included a review of relevant deposit models and mineralisation styles of interest, regional and local geology, local mineral systems, academic papers, open file company and government reports and all available geochemical, geophysical and remote-sensed data sets.
Click here for the full ASX Release
This article includes content from Reach Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
