Astral Resources aggressively builds gold inventory in tier one mining district

Astral Resources (ASX: AAR) is making inroads with aggressive drilling programs underway across its gold projects in Western Australia’s tier one eastern goldfields location.

The company is fast-tracking exploration at the Mandilla and Feysville projects where it has firmed up 1.15 million ounces in gold resources and counting, with the goal of rapidly building inventory to support mine development.

Mandilla is the larger of the projects and is close to gold mines and processing infrastructure. It is 70km south of Kalgoorlie and located on the Widgiemooltha greenstone belt.

The project is made up of four primary deposits: Theia, Eos, Hestia and Iris and has a resource of 30 million tonnes grading 1.1 grams per tonne gold for 1.03Moz.

This was published in December and was the fourth resource update for Mandilla within 18 months.

Astral managing director Marc Ducler said the company’s strategy was to develop a larger standalone operation at Mandilla and build resources at Feysville, which is 50km away, to provide a satellite ore source.

Rapidly growing resource

Mr Ducler noted the Mandilla resource has grown at an average rate of 28% every six months over the past 18 months.

He describes Mandilla as the single largest gold resource held by a junior explorer in the region between Kalgoorlie and Norseman.

The project has the advantage of possessing existing mining leases, which are unencumbered by any third-party royalties other than the standard WA Government gold royalty.

As drilling continues at Mandilla, Astral’s understanding of the high-grade trends is improving and this is leading to better targeting and more efficient exploration.

Mandilla’s most recent resource update increased the inventory by 250,000oz and had a discovery cost of $16 per ounce.

Theia accounts for 85% of the Mandilla resource estimate and drilling during 2022 delivered broad and high-grade intercepts.

Highlight intercepts from drilling at Theia comprised 25m at 10.57g/t gold from 206m; 32.3m at 5.44g/t gold from 175.7m; and 15.07m at 2.24g/t gold from 269.93m.

Aircore drilling at Eos has returned a stand-out of 3m at 11.85g/t gold from 52m, while reverse circulation (RC) drilling at Hestia unearthed 6m at 7.07g/t gold from 107m and 1m at 26.15g/t gold from 13m.

Advancing Mandilla

Astral is currently undertaking a 25,000m RC program at Mandilla.

The program aims to extend, and infill drill the 1km of identified strike at Hestia.

Drilling is also testing the eastern flank of Theia to firm up continuation of high-grade trends.

Extensional and infill drilling will be completed across the southern portion of Theia.

A 2,000m diamond drilling campaign is also underway at Theia, which will target further extensions to the high-grade trends on the western flank.

Mr Ducler said both the diamond and RC rigs have been operating since the 26 January this year and assays are expected “in the coming weeks”.

“With drilling proving to be highly productive and on schedule we anticipate consistent news flow in coming months leading to our next mineral resource estimate update in the September quarter of this year.”

Feysville gold project

In parallel to advancing Mandilla, Astral is actively on the ground at its Feysville project.

Feysville encompasses 27 square kilometres of land in the eastern goldfields.

It is only 14km south of the world renowned 92Moz Kalgoorlie Super Pit, which Northern Star Resources (ASX: NST) currently operates.

To-date, Astral has built up a resource at Feysville of 3Mt at 1.3g/t gold for 116,000oz.

In January this year, nine-holes for 1,426m were drilled at Feysville, along with a 26-hole RC program for 2,554m.

The program tested along strike and down plunge of the historical Rosina underground workings and targeted the Rogan Josh, Hyperno, Ethereal, Rosina and Think Big prospects.

Latest assays

Astral has received preliminary results from the program, which showed high-grade and broad gold zones had been intercepted.

Notable assays were 17m at 2.98g/t gold from 39m (Rogan Josh); 2m at 16.09g/t gold from 45m (Hyperno); and 8.25m at 3.43g/t gold from 58.6m and 11m at 1.81g/t gold from 49m (Ethereal).

The 11m intercept at Ethereal ended in mineralisation.

At Rosina, drilling unearthed 3m at 3.9g/t gold from 24m, while over at Think Big best results were 7m at 1.33g/t gold from 93m and 8.4m at 1.14g/t gold from 61.1m.

Assays are still pending from three diamond holes drilled at Rosina, Kamperman and Michelangelo prospects.

More work planned

Mr Ducler said the initial results combined with observations of drill core have underpinned Astral’s plans to complete a more significant exploration program at Feysville.

This will be started once the campaign at Mandilla is completed.