Reach Resources Quarterly Report Highlights New Niobium and REE Discoveries
RR1 (RR1) Share Update October 2024 Thursday 24th
Reach Resources Identifies New High-Grade Niobium and REE Targets
Reach Resources Limited (ASX: RR1 & RR1OA) has released its quarterly activities report, announcing significant developments at its Wabli Creek project, including the identification of new high-priority targets for niobium and rare earth elements (REE).
Instant Summary:
- Multiple new high-priority targets identified for niobium and REE at Wabli Creek.
- Heritage clearance obtained for drilling activities with local Aboriginal groups.
- Detailed mapping and sampling completed, revealing complex geology.
- Drilling program commenced and completed, with assay results pending.
Exploration and Target Identification
Reach Resources has made significant strides in its exploration efforts at the Wabli Creek project in Gascoyne, Western Australia. The company's expert geophysical consultant, Southern Geoscience, has identified multiple new targets considered high priority for the discovery of niobium and rare earth elements (REE) enriched features.
The detailed geophysical imagery analyzed by Southern Geoscience shows a strong correlation with previously identified geochemical targets, adding confidence to the potential of these high-grade niobium and REE targets. This discovery marks a significant shift from the previously assumed pegmatite source to a fine-grained alkaline igneous rock, which is strongly associated with carbonatite.
Heritage Clearance and Drilling
In collaboration with the Wajarri people and the Burringurrah Aboriginal Corporation, Reach Resources has obtained heritage clearance for ground-disturbing activities, including a drilling program over the main target areas. This clearance is crucial for the progression of the project and demonstrates the company's commitment to working with local communities.
The company has completed a detailed mapping and sampling exercise, which has accurately mapped the complex geology of the area. This includes three different alkaline igneous formations, associated dykes, multiple pegmatites, and granite complexes, resulting in the identification of multiple new high-priority targets.
Drilling Program and Future Prospects
Reach Resources has confirmed drill-ready targets following the analysis of surface samples, which returned highly anomalous values for niobium, neodymium, and praseodymium, among others. The company's maiden RC drill program commenced on 4 October 2024 and was completed by 22 October 2024, with 40 holes drilled across three target areas.
The company eagerly awaits the assay results from the 3,013 RC samples collected, which are currently being analyzed in Perth. These results will provide further insights into the mineralization potential of the Wabli Creek project.
The identification of new high-priority targets for niobium and REE at Wabli Creek is a positive development for Reach Resources. This could potentially enhance the company's exploration portfolio and attract investor interest. The successful completion of the drilling program and pending assay results are crucial for determining the project's viability and future impact on the company's stock.
Investor Reaction:
Analysts are likely to view this announcement positively, given the potential for significant mineralization at Wabli Creek. However, investor sentiment will largely depend on the forthcoming assay results and the company's ability to capitalize on these discoveries.
Conclusion:
Investors should keep a close watch on Reach Resources as it progresses with its exploration efforts at Wabli Creek. The pending assay results will be a key indicator of the project's potential and could influence future investment decisions. Reach Resources' strategic approach to these discoveries will be critical in maintaining and boosting investor confidence.