Reed Resources secures opportunity to extend gold focused land holdings in Meekatharra

Reed Resources (ASX: RDR) can now boost the company's Meekatharra land holding to a 110 kilometre long continuous land package from Reedy to Meekatharra North, after securing an option for outright ownership of the Nannine Mining Centre.

Nannine is highly prospective for gold, with historical mining having produced over 200,000 ounces.
The two year option comprises a fee of $150,000 and assuming responsibility for maintaining the tenements in good standing during the option period.

Reed can then acquire outright ownership of the Nannine tenements for $1,500,000 (payable in cash or Reed Resources shares), with a further payment of $500,000 due upon a decision to mine.

Christopher Reed, managing director, said, “This option provides the company with the opportunity to secure another sensational land package within the Meekatharra area.

"Whilst the official resources are only 59,000oz, there are many unofficial historic estimates associated with the prospects that indicate significant potential exists in the Nannine area.

"These will be reassessed by the Company’s internal technical team."

Reed will now commence a detailed validation of all exploration and mining data before proceeding with exploration, remodelling and re-optimisation of the existing resources, to determine whether to exercise the option.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17663/reed-resources-secures-opportunity-to-extend-gold-focused-land-holdings-in-meekatharra-17663.html