Stockhead Investor: Astral builds confidence in Mandilla gold resource with infill drilling

Astral Resources has built confidence in the robust nature of its Mandilla gold project resource, completing drilling with wide, high-grade assays in a proposed starter pit at the key Theia deposit.

Theia contains the largest portion of the 42Mt at 1.1g/t for 1.43Moz gold resource at Mandilla 70km south of Kalgoorlie, with drilling on dense 12m by 12m spacing confirming the quality of gold in the project’s high-grade starter pit.

The $330 million capped Astral Resources (ASX:AAR) is working towards a definitive feasibility study on Mandilla, with a June pre-feasibility study suggesting seven open pits feeding a 2.75Mtpa processing facility would churn out 95,000oz a year for 12 years.

At a gold price of $4250/oz, that delivers a discounted NPV of $1.4bn, rising to $2.9bn at spot levels of near-$6250/oz.

The results from the final 17 holes infilling Theia suggest the early years will be very fruitful indeed.

Completing a 99-hole, 11,121m program, best results included:

• 19m at 1.81g/t Au from 68m, 5m at 1.51g/t from 121m and 4m at 46.8g/t from 130m incl. 1m at 184.7g/t from 132m;

• 21m at 7.13g/t Au from 40m incl. 2m at 63.8g/t from 50m;

• 4m at 1.70g/t Au from 23m and 43m at 2.46g/t from 48m incl. 1m at 11.2g/t from 69m, 1m at 10.8g/t from 83m and 1m at 25.2g/t from 89m;

• 5m at 1.52g/t Au from 93m and 28m at 3.38g/t from 102m incl. 1m at 28.4g/t from 105m and 1m at 35.0g/t from 109m; and

• 33m at 2.21g/t Au from 44m incl. 1m at 14.3g/t from 67m and 1m at 13g/t from 69m.

Full article: https://stockhead.com.au/resources/astral-builds-confidence-in-mandilla-gold-resource-with-infill-drilling/