Astral Resources Mandilla Project Set to Deliver 95,000 Ounces Per Annum with Remarkable Economics
Astral Resources (ASX:AAR) is rapidly advancing its flagship Mandilla Gold Project toward becoming a significant long-life gold operation in Western Australia's premier mining jurisdiction. Located just 70km south of Kalgoorlie and under 25km from the well-serviced town of Kambalda, Mandilla represents one of the most compelling emerging gold development stories on the ASX.
The recently completed Pre-Feasibility Study (PFS) has delivered outstanding results, positioning Astral as the only ASX-listed aspiring gold developer with a project of this scale in the strategically important Kalgoorlie/Kambalda region.
At a gold price of A$4,250/oz, the PFS forecasts:
- 95,000 ounces per annum gold production for the initial 12-year period
- Pre-tax NPV8 of $1.4 billion
- Pre-tax free cashflow of $2.8 billion
- Payback period of approximately 12 months
These metrics improve dramatically at current gold prices around A$5,000/oz, with the pre-tax NPV8 increasing to $2.0 billion and free cashflow rising to $3.9 billion, with payback shortening to just 9 months.
A Growing Resource Base with Strong Conversion to Reserves
Astral has systematically built an impressive resource base totaling 1.8 million ounces, supported by a robust maiden Probable Reserve of 1.1 million ounces. The company's flagship Astral Resources Mandilla Project hosts 1.43 million ounces (42Mt at 1.1g/t Au), with the cornerstone Theia deposit representing 81% of this resource (1.2 million ounces).
What's particularly encouraging is the high conversion rate from resources to reserves, with 95% of the Mandilla Mineral Resource Estimate (MRE) converted into the PFS production target. Similarly, 86% of the Feysville MRE has converted into the production target.
"Astral is the only ASX aspiring gold developer with a project of this scale in the Kalgoorlie/Kambalda region." – Marc Ducler, Managing Director
The Theia Deposit: A Game-Changer
The Theia deposit stands as the cornerstone of Astral's development strategy, representing 81% of the Mandilla MRE with 33Mt at 1.1g/t Au for 1.2 million ounces of contained gold in one large open pit. The deposit has a Probable Reserve of 28Mt at 0.9g/t Au for 829,000 ounces.
Recent diamond drilling at Theia has returned exceptional results, including:
- 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
These high-grade intercepts highlight the potential for further optimization of the mining schedule and resource growth. The company has planned approximately 10,000m of infill RC drilling for the September quarter in Stage 1 of Theia to test MRE response to grade control drilling, further de-risking the development.
Understanding Open-Pit Strip Ratios
For investors new to mining terminology, the "strip ratio" is a critical metric that impacts the economics of open-pit mining. Simply put, it refers to the amount of waste material that must be removed to extract the ore.
The Mandilla Project has a strip ratio of 6.4x over the life of mine, with the Theia deposit having a more favourable 5.5x ratio. A lower strip ratio generally means lower mining costs, as less waste material needs to be moved per tonne of ore extracted.
Despite this seemingly high strip ratio, the project economics remain robust due to several factors:
- High-grade portions of the deposit
- Efficient mine design
- Favourable location with excellent infrastructure
- Competitive operating costs (AISC of A$2,085/oz)
This balance of factors explains why Mandilla can maintain strong financial returns even with its strip ratio.
Strategic Satellite Operations Enhancing Project Economics
Astral isn't relying solely on Mandilla. The company has strategically assembled multiple operational hubs to feed into the Mandilla processing facility:
Feysville Gold Project
Located just 14km south of Kalgoorlie, Feysville has a current MRE of 5Mt at 1.2g/t Au for 196,000 ounces across the Kamperman, Rogan Josh, and Think Big deposits. The project has a maiden Probable Reserve of 2.3Mt at 1.2g/t Au for 88,000 ounces.
Feysville is expected to contribute approximately $250 million in free cash flow as a satellite operation feeding the Mandilla Gold Project.
Spargoville Gold Project
The recently acquired Spargoville Project adds further resource inventory with 3Mt at 1.4g/t Au for 139,000 ounces, providing additional satellite feed opportunities.
Development Timeline and Progress
Astral has outlined a clear path to production:
- Environmental approvals submission: December Quarter 2025
- Definitive Feasibility Study completion: June Quarter 2026
- Final Investment Decision: July 2026
- Construction commencement: September Quarter 2026
- Commissioning: December Quarter 2027
The company is well-funded with approximately $18.6 million cash (as of July 2025) and has a strong share register to support development financing.
Why Mandilla Stands Out in the Gold Development Landscape
Several factors make Astral's Mandilla Project particularly compelling:
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Prime Location: In the heart of Western Australia's Goldfields, 70km south of Kalgoorlie and less than 25km from Kambalda, with excellent existing infrastructure including highway access, water, and power.
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Scale and Longevity: 18.5-year mine life with 95,000oz annual production for the first 12 years, followed by 42,000oz annually for 6.5 years from low-grade stockpiles.
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Simple Mining and Processing: Conventional drill and blast, load and haul open pit operation with excellent metallurgy delivering 95.5% recovery through standard processing.
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Substantial Resource Base: 1.8 million ounce resource inventory underpinned by 1.1 million ounce Probable Reserve.
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Strong Financial Metrics: Exceptional NPV, free cash flow, and rapid payback period, even at conservative gold price assumptions.
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De-risked Development: The completion of the Maximus transaction allows for optimal design of surface infrastructure, unrestricted by tenement boundaries.
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Exploration Upside: Significant tenement package with exploration potential at Mandilla, Feysville, and Spargoville.
Investment Considerations
Astral Resources presents a compelling investment opportunity for gold investors seeking exposure to an advanced development project with clear path to production. The company's market capitalization of approximately $228 million (at $0.16 per share) appears attractive relative to the project's NPV of $1.4 billion (at $4,250/oz gold).
With gold prices currently around A$5,200/oz, well above the PFS base case assumption of A$4,250/oz, there's potential for even stronger economic returns than those outlined in the study.
The company is led by an experienced management team with Managing Director Marc Ducler at the helm, supported by a board with extensive mining industry experience including Chairman Mark Connelly and Directors Justin Osborne, Peter Stern, and David Varcoe.
With a clear development timeline, substantial resource base, exceptional project economics, and significant exploration upside, Astral Resources stands out as one of the most promising emerging gold developers on the ASX.
Ready to Invest in Western Australia's Next Major Gold Producer?
Discover why Astral Resources' Mandilla Gold Project represents one of the most compelling gold development opportunities on the ASX. With projected annual production of 95,000 ounces, a pre-tax NPV8 of $1.4 billion, and a rapid 12-month payback period, Astral is positioning itself as a significant player in the Kalgoorlie/Kambalda region. To learn more about this exceptional investment opportunity and stay updated on Astral's progress towards production, visit Astral Resources' website today.
