Astral Resources (ASX:AAR) has reported ‘positive’ results from a Scoping Study for its Mandilla Gold Project, highlighting the ‘strong’ potential to develop a standalone, long-life operation.
The $56.08 million market capitalisation company says the Scoping Study provides justification that Mandilla is commercially viable, and its board is supporting the progression of the project to a Preliminary Feasibility Study, subject to ongoing funding.
The company notes the timing of project development is yet to be determined due to the preliminary nature of the studies completed to date.
Astral also reports the Scoping Study determined that a 2.5-million-tonne-per-annum (Mtpa) Carbon-in-Leach (CIL) processing plant and associated infrastructure would be the ‘optimum’ commercialisation strategy for Mandilla.
As far as costs go, Astral has reported a life-of-mine (LOM) payable metal production target of 845,000 ounces at an all-in-sustaining cost of $1,648 per ounce.
Meanwhile, exploration and evaluation activities are still ongoing at Astral’s Mandilla and Feysville Gold projects. Activities at Mandilla will include both in-fill drilling to convert inferred resources to indicated resources and exploration drilling targeting further resource growth.
Commenting on the Scoping Study results, Astral Resources Managing Director Marc Ducler says: “We are pleased that the Mandilla Scoping Study has confirmed the potential for Mandilla to become a highly profitable standalone gold operation.
The study outlines compelling financial metrics for a Mandilla development, with projected free cash-flows of approximately $740 million over a life-of-mine of 11 years and a payback period of less than a year for total pre-production capital expenditure of approximately $191 million.
“the Mandilla Scoping Study has confirmed the potential for Mandilla to become a highly profitable standalone gold operation”
The study financials have been modelled using a gold price assumption of $2,750 per ounce, which is lower than the spot price has been for the past 6 months, and using a 5-stage open pit design based on a $2,100-per-ounce pit optimisation. This further highlights the potential upside for a Mandilla development.
Astral continues to advance exploration and resource definition efforts at Mandilla, as well as at the company’s nearby Feysville Gold Project, while simultaneously progressing Prefeasibility studies as it seeks to deliver on its strategy of building another quality Western Australian mining operation.”
The Mandilla Gold Project is one of the ‘largest’ undeveloped free-milling open-pit gold development projects in the Kalgoorlie region.
Astral Resources is a gold-focused explorer targeting the exploration, growth, and development of its flagship Mandilla project.
As of 30 June 2023, the company had $1.3 million cash at hand, according to its latest quarterly report. Astral launched a $3 million share placement in late July and then raised $1.6 million through a share purchase plan completed on 15 September 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Astral Resources
