The new mining lease directly adjoins the project. Pic: via Getty Images.
Reach picks up new mining licence, expands lithium landholding at ‘Delta lookalike’ Morrissey Hill
Mining
share
- Reach acquiring a new mining lease adjacent to Morrissey Hill lithium project in WA
- Project hosts pegmatites (lithium host rock) with combined strike length of 10km+
- Lease provides logistical benefits and will allow company to conduct trial bulk sampling
- Phase 2 drilling is planned at the project, Phase 1 assays are pending
Reach Resources has acquired a new mining lease (M09/101) right next door to its Morrissey Hill lithium project in WA, where all-important Phase 1 drilling assays are pending.
The project hosts more than 50 previously unrecognised pegmatites – the host rock for lithium mineralisation – across a combined strike length in excess of 10km.
It is also in the right area of a big discovery, being in the same system of rocks as neighbour Delta Lithium’s (ASX:DLI) Malinda project, where numerous hits like 56m at 1.12% lithium sparked a regional pegging rush.
Rock chip assays at RR1’s Bonzer prospect have already confirmed up to 2.3% Li2O across a monster 1.5km long pegmatite.
Subsequent Phase 1 drilling identified individual outcropping pegmatites with strike lengths of up to 2kms and widths of up to 30m.
Not to mention, diamond drill cores have shown multiple pegmatite intersections consistent with the geology at Malinda. Assays are pending.
Low-cost boost to landholding
A newly acquired mining lease directly adjoins the project, expanding RR1’s footprint and providing a bunch of logistical benefits and further exploration opportunities.
The company says the strategic acquisition will also allow them to conduct trial bulk sampling.
The company’s wholly owned subsidiary Critical Elements is purchasing the lease from Tamas Kapitany for ~$100,000 cash and shares to the value of $100,000.
RR1 has also agreed to issue the contingent share consideration to the seller in the event the company produces a resource on the mining lease of greater than 10,000,000 tonnes at greater than 1% Li20.
The completion date for the deal is scheduled for 31 December 2023.
“From my point of view this was a strategic acquisition two-fold: the mining lease (ML) contains potential lithium bearing pegs and as an ML is a much quicker path to production,” Reach CEO Jeremy Bower says.
“Plus securing this tenure rather than a competitor ensures greater control of our operations.”
Exploration ongoing and assays pending
The company expects to receive the first round of assays and geochemical analysis from Morrissey Hill in early November.
Three new target areas, Peggy Sue, Sunset Boulevard and the Morrissey Hill prospects have all had heritage surveys completed with Peggy Sue and Morrissey Hill cleared for the next phase of drilling at the project.
The Martin’s Reach prospect will be the subject of further heritage surveys with the Yinggarda people.
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.
