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Astral Resources Quarterly Update: Strong Performance and Gold Price Gains

Astral Resources Advances Mandilla Gold Project with Exceptional Drilling Results

Astral Resources NL (ASX: AAR) (“Astral” or “the Company”) has provided an update on its activities for the quarter ending December 31st 2024. The announcement covers developments at its key projects, including the Mandilla Gold Project and Feysville Gold Project, alongside corporate initiatives.

Mandilla Gold Project Progress

The Mandilla Gold Project is strategically located within the northern Widgiemooltha greenstone belt, approximately 70 kilometres south of Kalgoorlie, a prominent mining hub in Western Australia. This area is renowned for hosting world-class gold deposits, such as the Golden Mile Super Pit, managed by Northern Star Resources Limited (ASX: NST), the St Ives Gold Mine south of Kambalda, owned by Gold Fields Limited, and the significant Beta Hunt Gold Mine operated by Westgold Resources Limited (ASX: WGX).

Mandilla is situated on existing Mining Leases that are not encumbered by any third-party royalties other than the standard Western Australian Government gold royalty, enhancing the project’s financial attractiveness. The Mandilla Gold Project encompasses four key deposits: Theia, Iris, Eos, and Hestia.

Drilling Programs

During the quarter, Astral completed several critical drilling programs at the Mandilla project. These include:

  • Iris Deposit: A 21-hole, 3,702-metre in-fill Reverse Circulation (RC) drilling program has been completed. Assay results from this program were received during the quarter.
  • Eos Deposit: A 16-hole, 2,558-metre extensional RC drill program was undertaken. Assays for this program are still pending.
  • Mandilla Deposit: A 4-hole, 1,605-metre in-fill diamond drilling (DD) program was conducted. Assay results are pending.
  • Geotechnical Drilling: A 6-hole, 753-metre geotechnical DD drilling program was completed at the Eos and Hestia deposits. Assays are also pending for this program.

Assay Results

Several assay results were reported during the quarter, further confirming the robustness of the mineralisation at Mandilla. Significant results include:

Theia in-fill RC Program:

Results from the 70-hole (6,502-metre) in-fill RC drilling program at Theia were reported on October 9th 2024. The Theia deposit hosts an MRE of 29Mt at 1.1g/t Au for 1.02Moz of contained gold. This program aimed to upgrade the Inferred Mineral Resources to the higher-confidence Indicated category. Notable results included intersections such as 8 metres at 1.82g/t Au from 29 metres and 33 metres at 1.82g/t Au from 64 metres, including a high-grade 2 metres at 25.9g/t Au from 90 metres in hole MDRC886.

Iris In-fill RC Program:

Astral received assay results from the 21-hole in-fill RC drilling program at the Iris deposit. The Iris deposit hosts an MRE of 4.4Mt at 0.8g/t Au for 115koz of contained gold. Significant assay results include:

  • Hole MDRC931: 17 metres at 0.39 g/t Au from 57 metres and 5 metres at 10.3 g/t Au from 139 metres, including 1 metre at 47.1 g/t Au from 75 metres.
  • Hole MDRC949: 20 metres at 1.54 g/t Au from 129 metres, including 1 metre at 13.5 g/t Au from 135 metres.
  • Hole MDRC929: 27 metres at 1.05 g/t Au from 79 metres and 8 metres at 0.99 g/t Au from 116 metres.

These results confirm Iris’s potential to add significant value to the Mandilla Gold Project.

Astral resources

Figure 1: A map of the Mandilla Gold Project illustrating gold deposits overlaid on the local area geology.

Feysville Gold Project Update

Assay Results

During the quarter, the Company reported assay results for a 31-hole/3,843-metre in-fill and extensional RC drilling program completed at the Kamperman deposit during early October (Kamperman RC Program), with assay results discussed below.

Kamperman RC Program

Assay results from the Kamperman RC program completed during early October were reported on October 23rd 2024 and November 12th 2024. Best assay results included:

  • 12 metres at 7.26g/t Au from 23 metres including 1 metre at 16.5g/t Au from 24 metres and 1 metre at 39.7g/t Au from 27 metres; further down-hole, 25 metres at 24.3g/t Au from 68 metres, including 1 metre at 28.0g/t Au from 69 metres and 3 metres at 177g/t Au from 74 metres in hole FRC378.
  • 12 metres at 1.96g/t Au from 20 metres and 5 metres at 1.25g/t Au from 58 metres in hole FRC377.
  • 4 metres at 2.95g/t Au from 61 metres and 11 metres at 0.96g/t Au from 91 metres in hole FRC372.
  • 33 metres at 3.75g/t Au from 58 metres including 3 metres at 14.8g/t Au from 75 metres in hole FRC387.

Astral has continued its work at the Feysville Gold Project, located near Kalgoorlie, within the Norseman-Wiluna Greenstone Belt. The project hosts a 5.0 million-tonne (Mt) mineral resource estimate (MRE) grading 1.2 grams per tonne (g/t) for 196,000 ounces (Koz) of contained gold.

Updated Resource Estimate

The Company reported an updated JORC 2012-compliant MRE for Feysville. This resource incorporates maiden MREs for both the Kamperman and Rogan Josh deposits and an updated MRE for the Think Big deposit.

  • Think Big Deposit: The updated MRE shows 2.4 Mt at 1.1 g/t for 85.2 koz of gold.
  • Kamperman Deposit: A maiden MRE of 2.0 Mt at 1.3 g/t for 83.8 koz of gold.
  • Rogan Josh Deposit: A maiden MRE of 0.7 Mt at 1.3 g/t for 27.4 koz of gold.

The updated Feysville MRE is a key step towards positioning the project as a potential satellite ore feed source for the Mandilla Gold Project in the future.

Table 1: Feysville MRE (October 2024)

Table 2: Feysville MRE (October 2024) by Source

Drilling Program

During the quarter, Astral completed the final 300 metres of a 31-hole, 3,843-metre extensional and in-fill RC drilling program at the Kamperman deposit. Assay results were received during the quarter, with further drilling at Kamperman planned to continue. In addition, a 3-hole, 300-metre in-fill RC drilling program was completed, and assay results are pending.

Figure 2: Geological Map of the Feysville Gold Project, showcasing tenements, deposits, and prospects within the local geology

Corporate Developments

Fundraising and Financial Position

Astral completed a two-tranche placement to raise approximately $25 million (before costs) via the issuance of 263 million new fully-paid ordinary shares at an offer price of $0.095 per share. Directors of the Company participated in the placement, subscribing for 789,474 shares.

As of December 31st 2024, Astral held approximately $25.2 million in cash, providing ample financial resources to continue its exploration and development efforts. The Company is fully funded to reach a Final Investment Decision (FID) on the Mandilla and Feysville projects, including the completion of the Mandilla Pre-Feasibility and Definitive Feasibility Studies.

Acquisition of Maximus Resources Limited Stake

Astral entered into an agreement to acquire a 19.99% strategic stake in ASX-listed Maximus Resources Limited (Maximus) via a share swap. Astral issued approximately 40.8 million shares as consideration. Additionally, Astral submitted a non-binding indicative proposal to acquire all outstanding shares of Maximus for 7.0 cents per share through an all-scrip, off-market takeover. Due diligence and negotiations for the binding transaction implementation deed are ongoing.

Future Work and Feasibility Studies

Feasibility/Technical Studies

The Company continues to progress various workstreams related to the Mandilla Pre-Feasibility Study (Mandilla PFS), including:

  • A subterranean fauna and short-range endemic (SRE) desktop assessment for both Mandilla and Feysville is planned to begin in February, with the final report expected in March 2025.
  • SRE fieldwork assessment will commence in May 2025 at both Mandilla and Feysville, with a final report expected during the September 2025 quarter.
  • The fauna and flora studies for Feysville are complete, and the final reports are imminent.
  • Water supply target areas have been identified around the Mandilla area, with an initial ground electromagnetic survey already completed to further narrow down drilling locations.
  • The processing plant study is approximately 90% complete, and capital expenditure for process and non-process infrastructure is being finalised. The study is expected to be completed by March 2025.
  • Waste and ore material characteristics sample testing for Mandilla is nearing completion, with the study expected to be delivered in the March 2025 quarter.

The Company is targeting completion of the PFS by the June 2025 quarter.

Exploration

A DD rig will mobilise to Feysville in mid-January to complete the following programs:

  • A 3-hole/350-metre program at Kamperman to enhance the understanding of controls associated with high-grade mineralisation and provide sample material for metallurgical testwork.
  • A 17-hole/1,610-metre geotechnical drill program at the Kamperman, Rogan Josh, and Think Big deposits.

An AC drill rig is expected to mobilise to Feysville during the second half of January to complete approximately 6.3-line kilometres of regional drilling, completing the regional AC program which began in May 2024.

Investor’s Outlook

Astral Resources NL has demonstrated a strong performance in the market, with a notable 100% increase in its stock price over the past year. At its current price of $ 0.140 (as of January 13th, 2025), AAR has made significant strides, especially with a 3.70% gain year-to-date in 2025. This marks an impressive recovery for the Company, especially when compared to its 52-week range of $0.051 to $0.170.

The Company’s performance outpaces the sector by 111.92% over the same period, highlighting the Company’s growth potential and resilience in the market. The current share issuance stands at 1,243,155,098, signaling a robust capital structure.

Additionally, the current performance of gold, trading at AUD 4418 per troy ounce (as of January 13th, 2025), could be a promising factor for investors. Gold has shown significant upward movement over the past year, increasing by 32.11%, with a steady increase across various timeframes, including +47.70 USD (+1.79%) in the past week and +301.80 USD (+12.52%) in the past six months.

This increase in the value of gold is likely to positively impact Astral, given the Company’s exposure to precious metals, thus reinforcing the importance of this announcement for investors. As the market continues to favour commodities like gold, Astral Resources is well-positioned for potential growth, especially with the strength of its stock price and sector-leading performance.

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