Reed has a prudent and robust mine plan to achieve its
ambitions at Meekatharra. Since acquisition, Reed has re-evaluated
Meekatharra’s gold project areas resulting in a 50% increase in
resources to 3.6 million ounces and a 78% increase in reserves to
752,000
ounces. A mine plan has been developed to exploit multiple
ore-streams from multiple sources, reducing the mining risk
and allowing sustainable mining and exploration and bolstering
Reed’s vision of becoming an Australian mid-tier gold producer.
Reed has adopted a strategic and disciplined three-stage
approach to the exploitation of Meekatharra’s gold endowment.
Stage 1 will focus on the Yaloginda region which has historically
produced 1.5 million ounces. In the first 23 months, 134,000
ounces will be produced from four low-risk open pits located within
6.5
kilometres of the Bluebird mill.
Stage 2 will exploit the remaining 618,000 ounces of reserves
and will see the focus continue at Yaloginda, as well as expanding
from open pit to higher grade underground production at Reedys
to the south and Paddy’s Flat to the north. Reed is confident that
significant potential exists to add ounces per vertical metre in the
Eastern ore zones at Paddy’s Flat given existing exploration drill
hole orientation and spacing is unlikely to have adequately tested
very high grade gold spur veins and quartz lodes which result from
steeply dipping cross-structures.
Stage 3 of Reed’s strategy will be executed concurrently with
Stages 1 and 2 and will use the latest targeting and exploration
techniques to convert as many of the remaining 2.8 million ounces
of resources to reserves whilst also defining additional resources
and reserves.
“
The key to Reed’s chances of becoming a successful gold
producer lie in its disciplined approach to mining and exploration,
excellent location, infrastructure advantages and a proven
management team,” concluded Mr Tonkin.
REEDSETFORGOLDENGROWTH
LUKE TONKIN
MANAGING DIRECTOR
REED RESOURCES LTD
Reed Resources is poised to become a significant gold producer in
Western Australia’s historic Meekatharra mining region, with the
first gold pour expected by the end of 2012.
Reed has adopted a strategic, disciplined and staged approach
to exploit Meekatharra’s gold resource and reserve to deliver 100-
150,000
ounces per annum over the next 10 years at costs of less
than $1,000 per ounce.
Reed’s Meekatharra gold project is situated in the prolific
Wydgee Greenstone Belt, which is host to a number of multimillion
ounce deposits including Mt Magnet and Tuckabianna.
“
Crucial to Reed’s success in the region has been its
consolidation of a 1,000 square kilometres landholding which
includes 110 kilometres of prospective strike. This is the first
time the ore potential of the region has been brought together as
a contiguous land package under single control,” said Managing
Director Luke Tonkin.
With this considerable land package comes substantial
advantages, including existing infrastructure and proximity to
mining service centres. The jewel in the infrastructure crown is
the 3 million tonne per annum Bluebird carbon-in-leach processing
plant. Co-located at Bluebird is support infrastructure including a
200-
person camp, offices and workshops, potable water bore-fields,
communications and access to the well-equipped and serviced
Meekatharra township.
Bluebird gold plant at Reed Resources’ Meekatharra gold project
Great Northern Highway runs to the east and the Surprise Pit sits to the north
MINESITE 2012
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