Reach Resources Limited

Reach Resources Limited

ASX:RR1

Sourcing the Critical Minerals of the Future

Company Highlights

  • Reach Resources is an Australia-based exploration and development company with short- and long-term objectives to create near-term cash flow and long-term value with gold and critical metal-focused projects and technologies.
  • The company has recently announced high grade lithium oxide assay results up to 2.3 percent at its Morrissey Hill project and up to 14.3 percent niobium with associated heavy REE’s at its Wabli Creek project. Forward plans are focused on a maiden drill program at Morrissey Hill initially before moving to Wabli Creek.
  • Reach Resources wholly owns all its projects that allow for near- and long-term value creation.
  • Investing in an emerging magnet recycling technology, REEcycle, diversifies the company’s portfolio and could potentially enable them to bring the US-based technology to Australia.
  • A strong management team with decades of diversified experience leads the company toward its ambitious goals.
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INNspired

Overview

It’s no secret that the world is pivoting toward clean technology, but it’s not as simple as flipping a switch. Manufacturing green tech calls for higher quantities of critical metals, such as lithium, nickel, and rare earth elements (REEs). REEs are necessary to produce the powerful magnets found in nearly every emerging clean technology, such as electric vehicles and wind turbines. China produces between 80 and 90 percent of all REEs on the planet. This monopoly raises concerns among world governments, as countries with ambitious goals to become carbon-neutral are effectively dependent on China.

The Australian government recognizes this challenge while acknowledging its untapped REEs and critical mineral deposits. The success of Hasting Technology Metals’ (ASX:HAS) Yangibana Project in the Gascoyne Province has rekindled interest in REEs. Reducing its dependence on imported critical metals is why the government committed AU$240 million to critical mineral projects, ranging from mining operations to building new refineries.

Reach Resources Limited (ASX:RR1), is a Perth-based exploration and development company, aiming to develop a critical metals supply chain in Australia through a portfolio of high-potential mineral assets in the prolific Gascoyne Province and an investment in their downstream technology. This diversified critical minerals portfolio comprising lithium, rare earth elements (REE) and niobium (Nb) as well as an advanced gold asset, is strategically located in close proximity to other successful projects in Yinnetharra, Western Australia. Reach Resources' critical minerals projects include the Morrissey Hill Lithium project; Camel Hill Li/REE project; and the Wabli Creek Nb/HREE project.

In addition to its lithium potential, recent results from ongoing exploration at Morrissey Hill also revealed high-grade copper, gold and silver. Assays from a recently concluded rock-chip sampling program included up to 33.2 percent copper, 0.2 grams per ton (g/t) gold and 142 g/t silver.

The company’s Primrose Gold Project presents a strategic opportunity to generate cash flow to fund its promising critical minerals exploration projects. The Primrose Gold Project has a JORC-compliant inferred gold resource estimate of ~1 million tons (Mt) at 3.2 grams per ton (g/t) for 105,000 ounces of gold. In addition, nearby mills within the district could enable Reach Resources to refine its raw materials and quickly generate cash flow.


In addition to its promising mining projects, and to exemplify the Company’s ESG objectives, Reach Resources has also invested in an exciting new REE recycling technology. Recycling discarded neodymium (NdFeB) magnets is the foundation of the company’s long-term strategy. It has invested in REEcycle, a US-based magnet recycling company, leveraging technology pioneered at the University of Houston. The current market solution for recycling these magnets dissolves iron and boron in the process, whereas REEcycle’s technology separates them, which means more value is extracted from discarded magnets. Additionally, pilot testing shows that the new technology can achieve up to 99.8 percent recovery efficiency of the REEs. Reach Resources hopes to bring this technology to Australia.
Reach Resources Limited

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Overview

It’s no secret that the world is pivoting toward clean technology, but it’s not as simple as flipping a switch. Manufacturing green tech calls for higher quantities of critical metals, such as lithium, nickel, and rare earth elements (REEs). REEs are necessary to produce the powerful magnets found in nearly every emerging clean technology, such as electric vehicles and wind turbines. China produces between 80 and 90 percent of all REEs on the planet. This monopoly raises concerns among world governments, as countries with ambitious goals to become carbon-neutral are effectively dependent on China.

The Australian government recognizes this challenge while acknowledging its untapped REEs and critical mineral deposits. The success of Hasting Technology Metals’ (ASX:HAS) Yangibana Project in the Gascoyne Province has rekindled interest in REEs. Reducing its dependence on imported critical metals is why the government committed AU$240 million to critical mineral projects, ranging from mining operations to building new refineries.

Reach Resources Limited (ASX:RR1), is a Perth-based exploration and development company, aiming to develop a critical metals supply chain in Australia through a portfolio of high-potential mineral assets in the prolific Gascoyne Province and an investment in their downstream technology. This diversified critical minerals portfolio comprising lithium, rare earth elements (REE) and niobium (Nb) as well as an advanced gold asset, is strategically located in close proximity to other successful projects in Yinnetharra, Western Australia. Reach Resources' critical minerals projects include the Morrissey Hill Lithium project; Camel Hill Li/REE project; and the Wabli Creek Nb/HREE project.

In addition to its lithium potential, recent results from ongoing exploration at Morrissey Hill also revealed high-grade copper, gold and silver. Assays from a recently concluded rock-chip sampling program included up to 33.2 percent copper, 0.2 grams per ton (g/t) gold and 142 g/t silver.

The company’s Primrose Gold Project presents a strategic opportunity to generate cash flow to fund its promising critical minerals exploration projects. The Primrose Gold Project has a JORC-compliant inferred gold resource estimate of ~1 million tons (Mt) at 3.2 grams per ton (g/t) for 105,000 ounces of gold. In addition, nearby mills within the district could enable Reach Resources to refine its raw materials and quickly generate cash flow.


In addition to its promising mining projects, and to exemplify the Company’s ESG objectives, Reach Resources has also invested in an exciting new REE recycling technology. Recycling discarded neodymium (NdFeB) magnets is the foundation of the company’s long-term strategy. It has invested in REEcycle, a US-based magnet recycling company, leveraging technology pioneered at the University of Houston. The current market solution for recycling these magnets dissolves iron and boron in the process, whereas REEcycle’s technology separates them, which means more value is extracted from discarded magnets. Additionally, pilot testing shows that the new technology can achieve up to 99.8 percent recovery efficiency of the REEs. Reach Resources hopes to bring this technology to Australia.
REEcycle - How it works

Reach Resources is led by an experienced management team that builds confidence in its ability to reach its goals. Jeremy Bower, CEO, has over 15 years of experience in the global consulting and mining industry, working with the likes of GHD Pty Ltd and BHP Iron Ore. Robert Downey, non-executive chairman, is a commercial lawyer with over 20 years of experience helping companies in the public and private sectors. Additional experts in the mineral industry and corporate governance round out the management team.

Company Highlights

  • Reach Resources is an Australia-based exploration and development company with short- and long-term objectives to create near-term cash flow and long-term value with gold and critical metal-focused projects and technologies.
  • The company has recently announced high grade lithium oxide assay results up to 2.3 percent at its Morrissey Hill project and up to 14.3 percent niobium with associated heavy REE’s at its Wabli Creek project. Forward plans are focused on a maiden drill program at Morrissey Hill initially before moving to Wabli Creek.
  • Reach Resources wholly owns all its projects that allow for near- and long-term value creation.
  • Investing in an emerging magnet recycling technology, REEcycle, diversifies the company’s portfolio and could potentially enable them to bring the US-based technology to Australia.
  • A strong management team with decades of diversified experience leads the company toward its ambitious goals.

Key Projects

Reach Resources Key projects

Morrissey Hill Lithium

Morrissey Hill contains historical high-grade lithium, tantalum, rubidium, cesium, niobium results from rock-chip samples. It adjoins Red Dirt Metals’ (ASX:RDT) Yinnetharra Lithium Project, which recently announced initial assay results from drill intersections including 55.6 meters at 1.12 percent lithium oxide including 15 meters at 1.52 percent lithium oxide from 95 meters.

Geology within Morrissey Hill is consistent with Red Dirt Metals’ “Goldilocks Zone” theory for occurrence of lithium-cesium-tantalum (LCT) pegmatites. Numerous outcropping pegmatites have already been mapped at Morrissey Hill. In addition, results show a 5-kilometer lithium soil anomaly (>100 ppm Lithium) untested by drilling.

Project Highlights:

  • Historical high-grade samples: Results from historical rock-chip sampling at Morrissey Hill includes: 1.32 percent lithium oxide; 3.62 percent tantalum pentoxide; 1,936 ppm rubidium; 2,276 ppm cesium; and 1.55 percent niobium pentoxide.
  • Sampling Confirms High-grade Lithium: Encouraging assay results confirmed high-grade lithium of up to 2.3 percent lithium oxide; 4,295 ppm caesium and 705.8 ppm tantalum oxide.
  • High-grade copper, gold and silver: Recent rock-chip sampling also confirmed up to 33 percent copper, 0.2 grams per ton (g/t) gold and 142 g/t silver.

Wabli Creek REE Project

Pegmatites at Wabli Creek were previously evaluated by Great Mines, Kookynie Resources and Nickel Mines while targeting calcrete-hosted uranium deposits between 1974 and 1983. Two mineralised pegmatites have been the focus of exploration to date at Wabli. Reconnaissance assays indicate significant levels of critical elements like niobium and tantalum. A field program is currently underway at Wabli Creek, which includes detailed surface geochemical soil surveys, mapping the individual niobium-tantalum pits and following the niobium-tantalum-heavy-rare-earth mineralisation along strike.

Projects Highlights:

  • High-grade assays: High‐grade results from surface eluvial samples at Wabli Creek include: 14.3 percent niobium pentoxide; 6.7 percent tantalum pentoxide; 3,689 ppm total rare earth oxides (TREO) with 70.3 percent heavy rare earth oxides (HREO)
  • Consistent high-grade niobium and HREO: Independent geological experts have advised that the consistent high‐grade niobium and HREO are associated with an approximately 2.5-kilometer-long rare element pegmatite swarm identified from historical records at Wabli Creek.
  • Future work: Geophysical work using tight spaced radiometrics, gravity and/or aeromagnetics; petrography study using powder X‐ray diffraction and scanning electron microscopy; and drill testing of key targets.

Camel Hill REE Project

The Camel Hill tenement includes historical rock-chip samples with total rare earth oxide (TREO) results of up to 1,357 ppm - an approximately 3.5-kilometer REE soil anomaly of more than 500 ppm REE. Recorded REE anomalies at Camel Hill correspond with thorium radiometric highs.

Primrose Gold Project

Primrose project

Project Highlights:

  • Total inferred mineral resources: 1.035 million tons (Mt) at 3.2 g/t gold for 105,000 oz gold; includes higher grade components with 0.582 Mt at 4.7g/t gold for 87,000 oz gold.
  • Well-known Gold Field: This project is known for its gold deposits, with historical results of up to 25 g/t found with old equipment and techniques. Now, more recent exploration programs have indicated the existence of substantial gold at shallow depths with high-grade intercepts.
  • Nearby Processing Facilities: Two mills within the district may be available for processing the raw materials. However, the mine may eventually support its standalone mill.
  • Robust Infrastructure: The project is located a mere four-and-a-half hours north of Perth, adjacent to the Great Northern Highway. A local roadhouse provides accommodations and maintains a nearby airstrip.
  • Blue Heaven Prospect: On August 29, 2022, Reach Resources’ wholly owned subsidiary Cervantes Gold was granted a mining lease over the entire Blue Heaven tenure package within the Primrose Gold Project.

Management Team

Jeremy Bower - CEO

Jeremy Bower is an experienced company executive with a strong technical background spanning the last two decades.

He has worked across a diverse range of industries with a major focus on mining and resources with global consulting firms and BHP Billiton Iron Ore.

Bower has developed a unique skill set over the last twenty years working in technical fields such as contaminated sites, environmental impact assessment and tenure management to project management, corporate affairs and as the chief executive officer for several companies.

With the experience and understanding gained from these fields. Bower brings a highly strategic and detailed focus to company management.

Robert Downey - Non-executive Chairman

Robert Downey is a barrister and solicitor in Western Australia and has practiced as a corporate and commercial lawyer for over 20 years. He advises a wide range of public and private companies, and high-net-worth individuals, concerning commercial and corporate transactions. Downey has been a director of many publicly listed and private companies, offering significant experience as a director. He has particular experience in day-to-day listing rule compliance, disclosure, and governance issues.

Sam Wright - Non-executive Director

Sam Wright has over fifteen years of experience in the administration of ASX-listed companies, corporate governance and corporate finance. He is a member of the Australian Institute of Company Directors, the Financial Services Institute of Australasia, and the Chartered Secretaries of Australia. Wright is currently the finance director and company secretary of PharmAust (ASX:PAA) and non-executive director and company secretary of Structural Monitoring Systems (ASX:SMN). Wright is the company secretary at Buxton Resources (ASX: BUX) and Wide Open Agriculture (ASX:WOA).

Matthew O'Kane - Non-executive Director

Matthew O’Kane is an experienced mineral industry executive and company director with 25 years of experience in the mining, commodities, and automotive sectors. He has held senior leadership roles in Australia, the US, and Asia, in both developed and emerging markets. O’Kane has served on the board and as an executive of mining companies in Canada, Hong Kong, and Australia. He is currently the managing director of Comet Resources, non-executive director of Pursuit Minerals and non-executive director of Azarga Uranium. During his career, O’Kane has worked with companies involved in production, exploration, and development.

Chris Achurch - Company Secretary

Chris Achurch provides company secretarial, corporate advisory, and general consulting services to a number of ASX-listed clients.

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Reach Resources Limited

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