Reed Resources Provides Gold Strategy and Project Update

Australian diversified resources company Reed Resources is pleased to provide an update on its Gold assets and its strategy to resume gold production.

The Company’s strategy is to expand the existing resource base at Comet Vale through a staged RC and diamond drilling programgambar teknik detail mesin hammer mill and delineate sufficient reserves to resume production at the Sand Queen Gold Mine as a mechanised decline operation. New resource estimates and reserve calculations are expected by Christmas 2010.

These results will also determine the processing rate and scale of the Nimbus Mill refurbishment and recommissioning, for both internal and third-party requirements.

Resource Extension Drilling

A staged drilling program targeting both the existing Sand Queen/Sand George Lodes and the new parallel Sand Prince/Princess Grace lode system has commenced and is expected to be completed in early November.

Results will be released in due course. Phase 1 of the drilling will specifically target the Princess Grace structure that lies directly beneath the designed Sand Prince West Open Pit, which is also planned to host the portal for a potential decline.

Phase 2 of the drilling will specifically target any areas requiring further definition, including diamond tails of drill holes into the Sand Queen / Sand George Lodes. It is anticipated that this drilling will total 10,000m.

Regional Exploration

In addition to the resource extension drilling, a campaign of exploration drilling has been planned and will be drilled on completion of the Resource Expansion campaign. This is expected to total an initial 5,000m and is designed to test the main Comet Vale Shear both North and South of the Sand Queen mine.

Sand Prince Reserve

The Sand Prince West Pit was optimised and redesigned by Minecomp Pty Ltd. Extensional drilling is designed to delineate the Princess Grace lode system and thus provide impetus for a decline access into both the Princess Grace and Sand Queen/Sand George Lodes.