Why ASX mining stock Reach Resources is pivoting its exploration work away from gold | Summary and Q&A

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February 18, 2023
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Investing News
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Why ASX mining stock Reach Resources is pivoting its exploration work away from gold

TL;DR

Reach Resources has acquired new tenements in Western Australia for Rare Earth elements, manganese, and lithium mining, capitalizing on the growing demand for battery metals.

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Key Insights

  • ๐Ÿค˜ Reach Resources has shifted its focus from gold exploration to Rare Earth elements and battery metals due to market demand and potential.
  • ๐Ÿค— Acquiring tenements with manganese deposits opens up diversification opportunities for the company, considering its widespread use in steelmaking.
  • ๐Ÿ’— The acquisition of lithium mineralization aligns with the growing demand for lithium in the EV market and provides significant opportunities for Reach Resources.
  • ๐ŸŒ The gascoigne region in Western Australia is emerging as a critical mineral region, making it an ideal location for Reach Resources' acquisitions.
  • ๐Ÿคจ Reach Resources has secured funding through a capital raise of $2 million to aggressively pursue exploration and mining activities.
  • ๐Ÿซฅ The company has invested in a chemical process developed by researchers at the University of Houston, which allows for the separation of Rare Earth elements from permanent magnets, in line with the global push for a circular economy.
  • ๐Ÿšš Reach Resources aims to deliver on both the upstream and downstream aspects of mining, highlighting their commitment to a greener future.

Transcript

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Questions & Answers

Q: How has Reach Resources shifted its focus in recent months?

Reach Resources has pivoted towards Rare Earth elements and other battery metals, moving away from gold exploration due to the high market demand for these metals.

Q: What recent acquisitions has Reach Resources made?

The company has acquired two tenements next to their gascoigne skyline project, which hold manganese deposits, and another tenement next to their critical elements project, which has known lithium mineralization.

Q: Why is the acquisition of manganese deposits significant for Reach Resources?

Manganese is a widely used metal in the steelmaking process and is also growing in importance for cathode manufacturers in the EV market, providing diversification and significant demand potential for the company.

Q: How does the acquisition of lithium mineralization align with Reach Resources' goals?

The acquired tenement adjoins Red Dirt Metals' unifara lithium project, and the shared geology suggests a potential for lithium deposits. This acquisition allows Reach Resources to focus on the lithium market and explore their lithium mining opportunities.

Summary & Key Takeaways

  • Reach Resources has shifted its focus from gold exploration to Rare Earth elements and other battery metals, due to their high market demand.

  • The company has recently acquired tenements in the gascoigne region of Western Australia, including two projects in the gascoigne skyline and critical elements.

  • The acquisitions provide opportunities for diversification, with manganese being a widely used metal in steelmaking and lithium being crucial for cathode manufacturers and the EV market.

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