Ann: Murchison South Gold Project - RIU Gold Coast Presentation, page-4

Overall, this presentation from Reach Resources (ASX: RR1) is positive news — especially for a microcap explorer with limited funding. Here's a clear summary and assessment of the key points:

Summary: Murchison South Gold Project (June 2025 Presentation)

✅ Key Highlights

Feature	Detail
Project	Murchison South Gold Project, WA (Tier 1 region)
Gold Resources	- Blue Heaven: 681kt @ 2.8g/t for 61,300 oz Au - Pansy Pit: 72kt @ 2.5g/t for 5,800 oz Au
Mining Plan	Two shallow open pits identified – Blue Heaven & Pansy Pit
Ownership	Mining leases already granted
Infrastructure	Short haul to mills, nearby infrastructure, native title acknowledged
Current Status	Approvals and scoping study underway; starter pits defined
Exploration Upside	Pansy North, Jacamar, and Shamrock targets identified for follow-up
Cash	~$3.5 million cash, no debt
Market Cap	~$7 million (very small, high leverage potential)

Strategy

• Fast-track development to capitalize on high gold prices

• Use starter pits to generate early cash flow

• Self-fund exploration via revenue rather than raising capital

• Keep lithium/REE/manganese assets on standby for commodity cycle changes

Likelihood of Drilling Success

✅ Positives

• JORC-compliant resources already defined at Blue Heaven and Pansy

• High grades for near-surface oxide and fresh material (2.5–3.5 g/t is strong for open pits)

• Pits optimized at A$3,500/oz — conservative for current gold prices

• Mining Plus has confirmed exploration upside at new targets (Pansy North, Jacamar)

• Evidence of mapped quartz veins, a good geological sign for gold continuation

⚠️ Risks

• Resource size is small for now — not yet a standalone large-scale mine

• They will likely need successful follow-up drilling to materially grow the resource

• As a junior explorer, capital markets access and permitting timelines can affect pace

Conclusion: Is this good news?

Yes. This is good news for RR1 holders or potential investors. The company:

• Has defined gold resources with strong grades,

• Is close to development with granted mining leases, and

• Is pursuing a cash-flow-first strategy to avoid dilution.

If drilling at Pansy North and Shamrock extends known mineralisation, this could double the resource base and unlock real re-rating potential from a low $7M market cap. Risk remains, but for a microcap, the setup is compelling — especially if gold prices stay strong.

*gpt4o