Astral Resources (ASX: AAR) has reported strong gold intercepts from its Iris Deposit, supporting its inclusion in the upcoming Mandilla Project Pre-Feasibility Study (PFS). The recent results highlight the potential of Iris to contribute to the development of this 100%-owned gold project located near Kalgoorlie, Western Australia.
Positive In-Fill Drill Results at Iris
Astral Resources completed a 21-hole, 3,702-metre reverse circulation (RC) in-fill drill program at the Iris Deposit. The program targeted a small section of the deposit (60m x 280m) to improve the Resource category to Indicated.
The standout drill results include:
- 5 metres at 10.3 g/t Au from 139 metres, including 1 metre at 47.1 g/t Au in hole MDRC931.
- 20 metres at 1.54 g/t Au from 129 metres, including 1 metre at 13.5 g/t Au and 28 metres at 1.54 g/t Au in hole MDRC949.
- 27 metres at 1.05 g/t Au from 79 metres in hole MDRC929.
- 35 metres at 0.64 g/t Au from 61 metres, including 1 metre at 10.0 g/t Au in hole MDRC925.
These results confirm mineralisation continuity and a high-grade zone, with 81% of holes returning significant gold intercepts.
Astral Resources Managing Director Mr. Marc Ducler stated:
“These in-fill results from the Iris Deposit are very encouraging, supporting our plans to include Iris in the upcoming Pre-Feasibility Study (PFS) for the Mandilla Project development, which remains on track for delivery in Q2 2025.”
Significance of Iris Gold Deposits
The Iris Deposit currently holds a Mineral Resource Estimate (MRE) of 4.4 Mt (million tonnes) at 0.8 g/t Au for 115 koz (thousand ounces) of contained gold. However, 90% of this resource remains in the Inferred category.
The in-fill drilling aimed to upgrade a central section of the deposit to the higher-confidence Indicated category. With successful results, Astral now plans to expand the drill program to cover the remainder of Iris in 2025.
Mr. Marc Ducler highlighted the significance of this success, saying:
“The in-fill program was focused on the central section of the Iris Deposit, with assay results confirming a very successful in-fill test, delivering a significant number of drill intersections with gold grades above the MRE grade of 0.8 g/t Au. Following the success of these results, planning will commence to in-fill the remainder of Iris.”
Ongoing Exploration at Mandilla
Astral has also completed other major drilling programs across its Mandilla Gold Project.
- Eos Deposit: A 16-hole extensional RC program for 2,558 metres tested fresh rock gold mineralisation adjacent to the palaeochannel. Results for this program are pending.
- Theia Deposit: Four diamond drill (DD) holes, totalling 1,762 metres, were recently completed for in-fill drilling. Assay results are expected early next year.
- Kamperman Deposit: Three RC holes for 360 metres were drilled at the Feysville Project, with assays also pending.
Astral has further concluded a six-hole geotechnical DD program at Eos and Hestia. The Company now prepares for 2025, with new drill programs and assay results set to drive further Resource upgrades.
Mr. Ducler noted:
“We expect to commence 2025 with a flood of assay results from these recently completed drill programs, with a new round of diamond drilling also scheduled to commence at Kamperman to test a number of targets to improve our understanding of the structural controls to gold mineralisation as well as collecting drill core for metallurgical and geotechnical testing.”
Mandilla Gold Project – A Key Development Opportunity
Mandilla is located in the highly prospective northern Widgiemooltha greenstone belt, 70km south of Kalgoorlie. The region is home to renowned deposits, including the Golden Mile Super Pit in Kalgoorlie, operated by Northern Star Resources Limited (ASX: NST), the St Ives Gold Mine near Kambalda, owned by Gold Fields Limited, and the significant Beta Hunt Gold Mine, operated by Westgold Resources Limited (ASX: WGX).
The Mandilla Gold Project includes four main deposits: Theia, Iris, Eos, and Hestia. Combined, these deposits host a Mineral Resource of 37 mt at 1.1 g/t Au for 1.27 moz (million ounces) of gold.
The Iris Deposit’s success further strengthens Mandilla’s development case.
In September 2023, Astral announced a Scoping Study for Mandilla, proposing three open-pit mines feeding a 2.5 Mtpa (million tonnes per annum) processing facility. The study forecasts annual gold production of 80–100 koz, with a Net Present Value (NPV) of $442 million at a gold price of A$2,750.
Figure 2: A map of the Mandilla project showcasing the regional geology and mineral deposits.
Next Steps for Astral
With drilling at Iris delivering robust results, the focus shifts to completing the Mandilla Pre-Feasibility Study by Q2 2025. Updated MREs for Theia, Iris, Eos, Hestia, and Kamperman will follow the pending assay results from 2024 drilling.
Astral’s exploration strategy in 2025 includes:
- Expanding in-fill drilling at Iris.
- Diamond drilling at Kamperman for structural analysis and metallurgical testing.
- Further exploration across Mandilla’s key deposits to support Resource upgrades.
Investor Outlook
The recent announcement underscores the importance of the drill results at the Iris Deposit, which demonstrate significant gold mineralisation and continuity across three drill lines. These results are crucial as they support the inclusion of Iris in the upcoming Pre-Feasibility Study for the Mandilla Project, scheduled for Q2 2025. This development could potentially enhance the resource confidence at Iris, moving it from an Inferred to an Indicated category and positively impacting the Company’s project economics.
Given these developments, Astral Resources presents a promising investment opportunity for those looking to capitalise on its growth potential and advance exploration activities.
As of December 17th, 2024, the Company’s stock is trading at $0.145, with a market capitalisation of $180.35 million. Over the past 52 weeks, the stock has ranged from $0.051 to $0.170. Astral Resources has 1.2 billion shares outstanding.
For more information, visit Astral Resources NL’s official website.
