Nov 21, 2024

Reach Resources Reports 109m @ 1,109ppm TREO at Wabli Creek, Western Australia

Introduction:

Reach Resources Limited (ASX: RR1) (Market Cap: $9.61M | Last Close: $0.011 | Cash: $5.3M) has reported significant rare earth element (REE) intercepts from its maiden drilling program at the Wabli Creek Project in Western Australia's Gascoyne region, highlighted by 109 metres at 1,109 ppm Total Rare Earth Oxides (TREO) from 11 metres depth.

Drill Results:

109m @ 1,109 ppm TREO from 11m (including 4m @ 1,677 ppm TREO and 8m @ 270 ppm MREO) [24WCRC016]
80m @ 1,280 ppm TREO from 0m (including 3m @ 1,516 ppm TREO and 16m @ 257 ppm MREO) [24WCRC017]
73m @ 1,251 ppm TREO from 7m (including 1m @ 3,615 ppm TREO, 2m @ 6,046 ppm TREO, and 4m @ 708 ppm MREO) [24WCRC015]
86m @ 1,099 ppm TREO from 3m [24WCRC002]‍
80m @ 1,151 ppm TREO from 0m [24WCRC007]

Project Overview:

The Wabli Creek Project is located in the Gascoyne region of Western Australia. The project area contains a large Alkaline Granite intrusion which is the host for the REE mineralization. The recent drilling program targeted three areas within the intrusion: Pelops, Broteas, and Amphion.

Initial results are from the Pelops target area, where 18 of 40 planned holes have been reported. The mineralization appears consistent throughout the Alkaline Granite intrusion, suggesting potential for a large-scale REE deposit.

Program Details:

The maiden drilling program consisted of 40 reverse circulation (RC) holes across three target areas. Results from the first 18 holes at the Pelops target have been received, with the majority of holes reporting TREO >1,000 ppm. Mineralization starts from surface and remains open at depth. Petrology has confirmed Monazite and Zircon as the prominent REE minerals, with trace Pyrochlore and Columbite-Tantalite also identified.

Understanding These Results:

The reported TREO values represent the total concentration of all rare earth elements, including both light and heavy REEs. Magnet Rare Earth Oxides (MREO) specifically refer to Neodymium, Praseodymium, Dysprosium, and Terbium, which are critical for the production of permanent magnets used in electric vehicles and wind turbines.

The broad, consistent mineralization from surface to depths exceeding 100 meters suggests potential for a large-tonnage REE deposit. High-grade MREO intersections up to 1,856 ppm are particularly significant due to their higher economic value.

Management Commentary:

Jeremy Bower, CEO of Reach Resources, stated:

“This is a solid result from our maiden drill campaign at Wabli Creek. These initial results show large zones of TREO mineralisation and almost exclusively within the Alkaline Granite which means the target is potentially very large, considering the size of the intrusion and the mineralisation remains open at depth. We look forward to receiving the remainder of the assays so we can understand the extent of what we have discovered.”

Next Steps & Catalysts:

Reach Resources is awaiting assay results from the remaining 22 drill holes, which are expected in the coming weeks. The company will conduct further geochemical analysis to assess the data and plan the next phase of exploration work.

Commodity Outlook:

Rare earth elements, particularly those used in permanent magnets (MREO), are in high demand due to their critical role in green energy technologies and electric vehicles. The potential for a new REE discovery in Western Australia could be significant for the global supply chain, as the market seeks to diversify sources outside of China's dominant position.

Conclusion:

The initial drill results from Wabli Creek demonstrate potential for a REE deposit with consistent mineralization from surface. The presence of high-grade MREO zones adds value to the project. With mineralization open at depth and across a large intrusion, Reach Resources is positioning itself to continue exploration.

Sources:

RR1 Drill Results Announcement

Additional Figures:

No additional figures

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