Proactive Investor: Astral's Mandilla Gold Project delivers 22% resource growth

Astral Resources NL (ASX:AAR) earlier this week reported a substantial upgrade to the mineral resource at the Mandilla Gold Project in Western Australia, lifting its consolidated resource base to approximately 2.07 million ounces of gold.

Managing director Marc Ducler said the updated Mandilla resource now stands at 1.74 million ounces, representing a 22% increase and adding around 310,000 ounces. He described Mandilla as the “flagship” deposit that underpins the broader project, highlighting its scale at 54 million tonnes grading 1.0g/t gold.

Ducler emphasised that increased drilling density has significantly improved confidence in the resource. He noted that infill drilling at 12.5m by 12.5m spacing has delivered measured resources, the highest confidence classification, and that both grade and contained ounces have held firm or improved compared to earlier estimates. He said this outcome validates the company’s resource estimation methodology and provides greater certainty as the project advances toward development.

The company is also assessing underground potential beneath the existing open pit. Ducler stated that a conceptual study indicates underground mining could be economically viable, with costs estimated at around A$135–$140 per tonne. Early drilling results suggest the mineralisation could extend approximately 180 metres below the current pit design, with assays pending to confirm this potential.

In terms of funding and development readiness, Ducler pointed to a strong financial position, with $73 million in cash. He added that a potential agreement related to the Think Big deposit could generate a further $50 million in cash flow, strengthening the balance sheet. Combined with the possibility of securing around $200 million in project debt, Astral Resources appears well positioned to progress Mandilla toward production.

Looking ahead, the company continues to advance exploration across its broader tenement package, including Feysville and Spargoville. Ducler highlighted that Astral Resources already has a 17-year mine life outlined in its pre-feasibility study, with further exploration offering upside through additional resources and potential higher-grade “sweeteners” to enhance project economics.

Overall, the upgraded resource, strong financial footing and ongoing exploration activity position Astral Resources to deliver key catalysts in the near term, including further drilling results, feasibility study progress and potential development milestones.

Full article: https://www.proactiveinvestors.com.au/companies/news/1091121/astral-s-mandilla-gold-project-delivers-22-resource-growth-1091121.html