Astral Resources NL (ASX: AAR) continues to solidify its position as a rising star in the Australian gold sector with exceptional drilling results at its flagship Mandilla Gold Project, located near Kalgoorlie, Western Australia. The latest assays from diamond and reverse circulation (RC) drilling at the Theia and Eos deposits reinforce the project’s strong growth potential as the company moves closer to completing a Pre-Feasibility Study (PFS) by mid-2025.
Highlights of Recent Drilling Program
The Mandilla Gold Project is located in the northern Widgiemooltha greenstone belt, about 70 kilometers south of Kalgoorlie, Western Australia, a prominent mining hub. This region is home to world-class deposits such as Northern Star Resources’ Golden Mile Super Pit (ASX: NST), Gold Fields’ St Ives Gold Mine (ASX: GFI) near Kambalda, and Westgold Resources’ Beta Hunt Gold Mine (ASX: WGX). The project encompasses the Theia, Iris, Eos, and Hestia deposits.
Figure 1: Geological map of the Mandilla Gold Project area
Astral’s recently completed four-hole (1,762-metre) in-fill diamond drilling program at the Theia Deposit and a 16-hole (2,558-metre) RC drilling campaign at the Eos Deposit returned outstanding results, including significant high-grade intersections:
Theia Deposit
- Hole MDRCD919A:
- 28m at 2.63g/t Au from 149m, including 0.5m at an exceptional 115.7g/t Au.
- 12.3m at 1.77g/t Au from 279.7m, including 0.4m at 37.9g/t Au.
- 7.2m at 1.58g/t Au from 354.7m.
- 19m at 0.64g/t Au from 367m.
- 56.7m at 0.64g/t Au from 403m, including 0.53m at 14.4g/t Au.
- Hole MDRCD920A:
- 39.1m at 1.04g/t Au from 213.1m, including 0.3m at 59.9g/t Au.
- 15.5m at 1.81g/t Au from 435m, including 0.3m at 46.0g/t Au.
Both diamond drill holes ended in mineralisation, confirming that the Theia deposit remains open at depth.
Eos Deposit
RC drilling results at Eos also returned strong intercepts, confirming the presence of shallow, south-west dipping vein sets hosting gold mineralisation. Notable results include:
- MDRC966: 14m at 2.50g/t Au from 46m.
- MDRC961: 10m at 1.05g/t Au from 149m.
- MDRC954: 10m at 1.04g/t Au from 100m.
The mineralisation style at Eos is similar to Theia, further validating the project’s potential for resource expansion.
Managing Director’s Comment
Astral Resources Managing Director Marc Ducler commented on the latest results:
“The four-hole diamond drill program completed in December aimed to convert the deeper Inferred Mineral Resources at Theia to the higher confidence Indicated category.”
“The drill holes were designed to intersect the mineralising quartz vein sets at Theia on a slightly oblique angle, with this orientation allowing us to test a larger portion of the deposit with each hole, making for a cost-effective drilling approach. Given this orientation, we were expecting to see several intersections down the length of each drill-hole which, when aggregated, the mineralised sections have returned 172 gram-metres in hole MDRCD919A and 199 gram-metres in hole MDRCD920A.”
In addition to the Theia results, Mr. Ducler reflected on the successful RC drilling at the Eos deposit, designed to explore extensions to the fresh rock mineralisation to the north-east. The results, he noted, revealed multiple mineralised gold intercepts in an area that had not been previously drilled, adding considerable upside potential to the project.
“We commenced hydrogeological drilling for our PFS at Mandilla on 5 January 2025, while diamond drilling at Kamperman is planned from January and air-core drilling on regional targets at Feysville is expected to commence shortly afterwards. RC drilling at Feysville is currently planned to recommence at the start of February 2025,” he added
Concluding with a sense of excitement, Ducler declared that the Astral team is gearing up for a transformative 2025. His words painted a clear picture of a busy year ahead, with the company ramping up exploration and development across its key assets.
Progress Toward the Pre-Feasibility Study
The recent results will feed into the resource model, supporting an upgrade to the Indicated category in the March quarter of 2025. These upgrades are integral to the PFS, which remains on track for completion in the June quarter of 2025.
Astral has also mobilised a water bore rig to drill five holes at Mandilla and eight holes at Feysville, aiming to determine dewatering requirements for the PFS. This reflects the company’s meticulous approach to managing operational and environmental aspects.
Investor’s Outlook
Mandilla’s robust resource base, currently standing at 37Mt at 1.1g/t Au for 1.27Moz, combined with its strategic location near Kalgoorlie, positions it as a high-potential asset. The 2022 Scoping Study showcased compelling economics with a Net Present Value (NPV) of $442 million, a competitive all-in sustaining cost (AISC) of A$1,463/oz, and estimated annual gold production of 80–100koz over eight years.
The continued success of the exploration program enhances confidence in Astral’s ability to unlock additional value, attracting both retail and institutional investors looking for growth in the Australian gold sector.
As of January, 20th, 2025, Astral Resources NL (AAR) stock price was $0.140, with a market capitalisation of $174.04 million. Over the past 52 weeks, the stock has ranged between $0.051 and $0.170. With 1,243,155,098 shares on issue, Astral’s stock price has shown potential for growth, particularly as the company progresses with its exploration and development projects, including the promising results from its Mandilla Gold Project.
Broader Exploration Initiatives
Astral has outlined further exploration at its 100%-owned Feysville Gold Project, where diamond and air-core drilling will commence in January 2025. Additionally, results from in-fill RC drilling at the Kamperman Deposit are expected later this month, adding another layer of potential resource growth to the company’s portfolio.
Wrapping Up!
Astral Resources’ Mandilla Gold Project is shaping up as a key player in Western Australia’s thriving gold industry. The strong assay results, coupled with a clear path to a resource upgrade and PFS, position the company for sustained success.
Managing Director Marc Ducler’s leadership and the company’s focus on disciplined exploration and development set a promising trajectory for 2025. Investors can anticipate a series of value-adding milestones as Astral continues to deliver on its growth strategy.
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