Reed increases Meekatharra Resource

THE BOURSE WHISPERER: Emerging ASX-listed gold producer Reed Resources has added an additional 283,000 ounces of gold in Indicated and Inferred Mineral Resource to its Meekatharra gold project.

The additional ounces represent an 8.5 per cent increase in total gold resources at Meekatharra that now stand at 3.59 million ounces.

Reed said its geological team is continuing to evaluate the numerous brownfield and greenfield targets at the Meekatharra project.

The company is hopeful this will result in further enhancement of both its Resources and Reserves in order to extend the life of the project.

The latest exploration activity program at Meekatharra has identified maiden resources at the Magazine-Grants trend and Five Mile Well deposits along with a further resource at Boomerang Deeps.

Location of Resources along the Magazine – Grants trend. Source: Company announcement

Reed said the new Resources will now be optimised ahead of detailed design and reserve estimation.

The company said it anticipates releasing an updated reserve estimate in the June Quarter 2012.

“This latest announcement further highlights the massive potential the Meekatharra group of tenements offer,” Reed Resources managing director Christopher Reed said in the company’s announcement to the Australian Securities Exchange.

“We have an ongoing program to fully evaluate prospective areas of our tenement holding and are confident of further increases to the resource endowment in the coming months.”

Reed said the continued increases to the resource base at the Meekathara gold project have reinforced its recent decision to mine at Meekathara, which it based on the robust economic viability of the project.

The operation remains on target to start production in the December quarter and the company believes each new resource provides it with future production opportunities.