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Cashed up Reach is about to drill right next door to Delta’s massive lithium discovery
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Reach Resources will raise $4m — at no discount — in a heavily oversubscribed placement ahead of highly anticipated lithium drilling across its Yinnetharra tenure in WA.
When Delta Lithium (ASX:DLI) began exploring its Yinnetharra project near Gascoyne Junction late last year, the Gascoyne region of WA was anything but a lithium hub.
It was, and still is, very unexplored for the battery metal but the prospectivity is apparent — hard drilling Delta has now confirmed multiple mineralised pegmatites “with commercial scale opportunity and strikes exceeding 1600 metres length”.
Reach Resources’ Yinnetharra ground comprises three large 100% owned projects — Morrissey Hill, Camel Hill and Wabli Creek – nestled between Delta Lithium and fellow emerging heavyweight Minerals 260.
The popular explorer has been on a tear since mid-May, when it picked up rock chips grading ~2.3% lithium at Morrissey Hills’ Bonzer target, which is in the same system as Delta’s neighbouring discovery.
RR1 now has the cash get the drills spinning on key targets.
Raise massively oversubscribed
The $4m raise was popular with new and existing institutional investors.
Not only was it was done at 0% discount, which is rare, it was also heavily oversubscribed.
With all regulatory approvals and permits, including Aboriginal heritage clearance, now received, these funds will be immediately put to work.
Drilling contractors are expected to mobilise to Morrissey Hill during the week commencing 14 August for a significant maiden program.
Highly anticipated maiden drilling
The first campaign of 4500m of RC and diamond drilling is hunting lithium-bearing pegmatites in the Bonzer Pegmatite Field.
Reconnaissance holes may also go into the Malibu lithium prospect, the Swallowtail copper prospect and south of Bonzer where a large number of outcropping pegmatites have been recently mapped and heritage cleared.
“The Bonzer prospect only represents a small portion of the potential at Morrissey Hill, but we have always said the Bonzer is a walk‐up drill target and following the outstanding rock chip results obtained at this location, it’s without a doubt our first stop,” RR1 CEO Jeremy Bower says.
“Having Strike Drilling and DDH1 mobilising in a couple of weeks to kick off our maiden drilling program, on an area that has never been previously drilled is exciting.”
Delta Lithium are doing some great work next door and reporting fantastic results from the same pegmatite system, Bower says.
“Morrissey Hill deserves to be drilled comprehensively, and with the $4 million raised under the placement, the exploration team can take their time and do things right.
“Additionally it provides sufficient funding to fast track the necessary approvals required to get things moving at Wabli Creek where the company has reported very promising Niobium results.
“We are delighted with the outcome of the Placement which secured strong institutional support from new investors who recognise the value in the Company.
“We look forward to providing regular updates over the coming months as we obtain assays from over 5000 soil samples and as drilling gets underway.”
This article was developed in collaboration with Reach Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
