BELEAGUERED junior Reed Resources is flagging a move away from gold after a resource estimate confirmed its Barrambie project was one of the world’s highest grade titanium deposits.
Just weeks after Reed was forced to close its gold mine in WA’s Murchison region, the company announced a total indicated and inferred resource for Barrambie of 47.2 million tonnes grading 22.2 per cent titanium, 0.63 per cent vanadium and 46.7 per cent iron oxide.
The company stated that Barrambie – south of Meekatharra in WA – was the world’s second highest grade hard-rock titanium deposit.
The estimate included assay results from 782 reverse circulation and 36 diamond holes drilled by Reed between 2007 and 2008. Barrambie was modelled to about 60m below surface – the planned depth for initial open pit mining – and remained open at depth and along strike.
Reed was forced to close its Meekatharra gold project – which it purchased in 2010 – after failing to raise the money it needed to keep operating.
Lower than expected grades and technical problems had hampered efforts to secure enough funding, the company stated.
Administrators were appointed to GMK Exploration, the holding company of the Meekatharra gold project.
Assuring investors it remained solvent, Reed immediately began a strategic review for continuing development or realisation of value of its remaining projects: Mt Marion, Barrambie, Comet Vale and Mt Finnerty.