Mandilla Project Drives Astral's Ambition to Join 100,000oz Club
Astral Resources (ASX:AAR) is rapidly positioning itself as Western Australia's next significant gold producer, with its flagship Mandilla Gold Project by Astral Resources NL demonstrating substantial growth and robust economics. The company has recently increased its total mineral resource to 1.62 million ounces across its combined projects, with 1.43 million ounces at Mandilla alone, establishing a solid foundation for a major mining operation in the heart of WA's prolific Goldfields region.
A recent Scoping Study for Mandilla delivered compelling metrics, indicating potential for a large-scale, long-life mine with strong financial returns. At a gold price of A$2,750/oz, the project is projected to produce 100,000 ounces per annum for the initial 7.4 years, generating a pre-tax NPV8 of $442 million and pre-tax free cash flow of $740 million with an impressive payback period of just 9 months.
"Our resource base continues to grow cost-effectively, with 1.43 million ounces added since January 2020 at a discovery cost of less than A$18 per ounce. This positions Astral with one of the most compelling undeveloped gold assets in the Goldfields region." – Marc Ducler, Managing Director
Mandilla Resource Expansion Exceeds Expectations
The March 2025 update to the Mandilla Mineral Resource Estimate (MRE) resulted in a 13% increase in total resources and a dramatic 49% increase in the higher confidence Indicated category, bringing it to over one million ounces. This improvement was achieved at a discovery cost of just $26 per ounce for the 161,000 ounces added in the recent update.
The resource growth came through strategic diamond drilling which delivered exceptional results, including intercepts of:
- 1m at 223.3g/t Au
- 9.55m at 27.6g/t Au
- 2.42m at 169.1g/t Au
- 24.9m at 4.14g/t Au
The cornerstone of the project is the Theia deposit, representing 81% of the Mandilla MRE with 33Mt at 1.1g/t Au for 1.2 million ounces contained within a single large open pit—a rare find in the WA Goldfields.
| Deposit | Classification | Tonnes (Mt) | Grade (g/t Au) | Au Metal (koz) |
|---|---|---|---|---|
| Theia | Indicated | 24.5 | 1.1 | 832 |
| Inferred | 8.8 | 1.1 | 323 | |
| Total | 33.3 | 1.1 | 1,154 | |
| Iris | Total | 4.3 | 0.8 | 108 |
| Eos | Total | 1.5 | 1.5 | 72 |
| Hestia | Total | 2.4 | 1.2 | 91 |
| Think Big | Total | 2.4 | 1.1 | 85 |
| Kamperman | Total | 2.0 | 1.3 | 84 |
| Rogan Josh | Total | 0.7 | 1.3 | 27 |
| Total | 47 | 1.1 | 1,622 |
Feysville: The Growth Opportunity
While Mandilla Gold Project by Astral Resources NL forms the core asset, Astral's Feysville Gold Project, located just 14km south of Kalgoorlie, provides additional growth potential. The current Feysville MRE stands at 5Mt at 1.2g/t Au for 196,000 ounces across the Kamperman, Rogan Josh, and Think Big deposits.
The company added 80,000 ounces to the Feysville resource in October 2024 at an exceptionally low discovery cost of A$19 per ounce. Ongoing exploration includes a 385-hole air core drilling program and a 46-hole RC program currently underway to test newly identified gold anomalies.
Recent diamond drilling at the Kamperman deposit has been particularly encouraging, with all three holes in a recent program delivering over 100 gram-metres, indicating the potential for this satellite deposit to significantly contribute to future production.
PFS Advancement: On Track for Mid-2025 Completion
Astral is making steady progress on its Pre-Feasibility Study (PFS) for Mandilla, which is scheduled for completion in the June quarter of 2025. Key developments include:
- Appointment of an approvals manager with multiple work streams underway
- Finalisation of the power study for the PFS
- Completion of process plant operating expenditure estimates (tracking for less than 15% increase compared to the 2023 Scoping Study)
- Issuance of Request for Quotation (RFQ) to several mining contractors
- Completion of geotechnical drilling at both Mandilla and Feysville
The updated Mandilla MRE uses current PFS mining and processing cost estimates and is constrained within a pit shell at A$3,500/oz gold price, compared to the previous A$2,500/oz constraint. This should lead to strong conversion of resource ounces into the PFS production target.
Understanding Open Pit Constraints in Resource Estimation
When estimating mineral resources for potential open pit operations, geologists define "reasonable prospects for eventual economic extraction" by applying theoretical mining constraints to the geological model.
For Astral's updated Mandilla resource, the estimators used a higher gold price assumption (A$3,500/oz versus the previous A$2,500/oz) and current PFS mining and processing cost estimates. This allows for a larger conceptual pit shell, capturing more of the mineralisation that might be economically extracted.
This approach does not mean Astral is assuming gold will reach this price for actual mining operations. Rather, it ensures the resource estimate includes all material that could potentially become economic under various scenarios, providing a more comprehensive view of the deposit's potential.
Strong Corporate Position
Astral maintains a strong financial position with A$22.3 million in cash (as of March 2025) and no near-term capital raising requirements. The company's market capitalisation stands at approximately A$212.6 million (at $0.15 per share), with 1,417 million shares on issue.
The company recently completed the compulsory acquisition of Maximus Resources, consolidating 144km² of primarily contiguous tenure around Mandilla. This strategic move allows for more flexible future development of existing gold resources and provides a clear pathway for potential future deposits from regional exploration.
Astral's share register features strong institutional backing, with major shareholders including:
- Board & Management (3.6%)
- Braham Entities (6.2%)
- Burke Entities (5.8%)
- 1832 Asset Management (6.1%)
- Other institutions (17.2%)
Investment Thesis: Why Astral Stands Out
Astral Resources represents a compelling investment opportunity in the Australian gold sector for several key reasons:
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Near-term development potential: With a robust Scoping Study completed and PFS nearing finalisation, Astral has a clear pathway to becoming a significant gold producer in the next 1-2 years.
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Premium location: The company's projects are located in the heart of Western Australia's Goldfields region, one of the world's premier gold mining jurisdictions with excellent infrastructure and support services.
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Expanding resource base: The consistent growth in mineral resources at low discovery costs (under A$20/oz) demonstrates both the quality of the company's assets and the effectiveness of its exploration strategy.
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Tier-1 economics: Projected production of 100,000oz annually at an AISC of A$1,648/oz positions Mandilla as a high-margin operation, especially in the current strong gold price environment.
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Financial strength: With A$22.3 million in cash and strong institutional backing, Astral is well-positioned to advance through development without immediate dilution concerns.
Why Investors Should Follow Astral Resources
Astral Resources stands as the only ASX junior with a project of this scale in the Kalgoorlie/Kambalda region. The company combines the enviable attributes of a significant resource base (1.62Moz), strong economics (pre-tax NPV8 of $442M), low discovery costs (<$20/oz), and a premium location in one of the world's most productive gold regions.
With gold prices showing strength above A$5,000/oz, Astral's projected AISC of A$1,648/oz would generate substantial margins. The company's experienced board and management team, led by Managing Director Marc Ducler, brings a strong track record in resource development and mining operations.
As Astral progresses through the final stages of its PFS toward a development decision, investors have a unique opportunity to gain exposure to a near-term gold producer with significant upside potential, both from project development and ongoing exploration success across its extensive tenement package.
Key Takeaway:
"Astral Resources has positioned itself as a major emerging player in the Western Australian gold sector, with significant upside potential due to its high-quality resource base, robust project economics, and strategic location. With the PFS for Mandilla Gold Project by Astral Resources NL due in Q2 2025 and a development decision likely to follow, investors should keep a close eye on this emerging gold producer."
Want to Get in on Western Australia's Next Major Gold Producer?
Discover why Astral Resources is rapidly positioning itself to join the 100,000oz gold producer club with its flagship Mandilla Project. With 1.62 million ounces in total resources, compelling economics including a pre-tax NPV8 of $442 million, and strong institutional backing, Astral represents a unique investment opportunity in one of the world's premier gold mining jurisdictions. To learn more about this emerging gold producer and its development timeline towards production, visit Astral Resources' website for the latest investor information.
