Astral recaps productive September quarter

Astral Resources (ASX:AAR) dedicated its September quarter to levelling up its Mandilla Gold Project in Western Australia. 

On 21 September this year, the $62.4 million market capitalisation company delivered a Scoping Study for the project, outlining a ‘large-scale, long-life’ mine open-pit development with ‘robust’ financials.

The key highlights of the study include a life-of-mine (LoM) payable metal production target of 845,000oz at an all-in sustaining cost (AISC) of about $1,648 per ounce, a projected average annual gold production target of about 100,000 tonne per annum (tpa), a net present value of $442 million, and free cashflow of $740 million. 

This is all over an 11-year mine life and a payback period of 9 months. 

The company notes the Scoping Study was based on an updated JORC 2012 Mineral Resource Estimate (MRE) of 37 million tonnes (Mt) @ 1.1 grams per tonne (g/t) for 1.27 million ounces (Moz) of contained gold, as reported in July 2023.

Astral completed about 10,440m of drilling during the September quarter at Mandilla to further grow and upgrade the project’s resource. Drilling comprised up to 7,209m of reverse circulation (RC) drilling at both the Theia and Eos deposits, 740m of diamond drilling at Theia, and 2,491m of aircore (AC) drilling at Eos. 

Meanwhile, at its Feysvilla Gold Project, Astral undertook 3,202m of RC drilling across the Kamperman, Ethereal, and Hyperno prospects, which uncovered ‘breakthrough and exceptionally high-grade’ gold intercepts, as announced in September. 

Key assays returned from this round of drilling included hole FRC243 with 4m @ 94.84g/t gold from 77m, including 2m @ 187.7g/t gold from 77m, and 5m @ 8.29g/t gold from 53m, including 1m @ 38.72g/t gold from 59m; and hole FRC241 with 21m @ 4.16g/t gold from 31m, including 2m @ 12.73g/t gold from 47m.

Astral closed the books on the September quarter with $4.1 million cash at hand after undertaking a $3 million placement in August. The company followed this up with a share purchase plan (SPP) to support both Mandilla and Feysville.

Astral concluded the SPP in September and pocketed $1.6 million of its desired $2 million.

Astral Resources is a gold-focused explorer targeting the exploration, growth, and development of its flagship Mandilla Project and its Feysville Project.

Mandilla is in the northern Widgiemooltha greenstone belt, about 70km south of the mining centre of Kalgoorlie, while Feysville is within the north-northwest trending Norseman-Wiluna Greenstone Belt in the Archean Yilgarn Craton.

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.