Astral Resources lifts Mandilla gold numbers to over 1.25 million ounces
Astral Resources (ASX: AAR) has continued its run of significant growth at the Mandilla gold project in Western Australia increasing overall estimated resources to more than 1.25 million ounces while unveiling its fifth successive resource upgrade.
The latest Mandilla mineral resource estimate (MRE) has produced a 22% increase in total contained ounces and a 69% increase in indicated resources to 694,000 ounces led by a significant input from the project’s Theia deposit.
The Theia deposit resource has now hit 1.02 million ounces after a further 143,000 ounces were added in this MRE.
Indicated resource hits 21 million tonnes
Other highlights from the new MRE prepared by independent consultants Cube Consulting included an updated indicated resource estimation 21 million tonnes at 1.1 grams per tonne (g/t) gold, based largely on recent in-fill drilling. That in-fill drilling program added 231,000 incremental ounces at a relatively low average discovery cost of $18 per ounce.
Managing director, Marc Ducler, said this fifth successful Mandilla MRE in 26 months confirms the company’s ability to continue to grow the project while conducting a predominantly in-fill drill program.
The aim now is for the company to obtain the necessary critical mass to develop a sustainable and profitable gold business in the Kalgoorlie region based on its Mandilla and Feysville Gold Projects.
Part of those activities to lift the company’s global resources includes the current re-logging of diamond core.
The company will follow the acquisition of those results with a structural review planned for late in the September quarter which it expects will likely lead to additional diamond drilling targets.
Chasing deep targets
Astral is chasing the significant at depth potential at the deposit and looking to advance its understanding of the high-grade trends intersected at depth during the most recent drilling program.
To date a significant number of the deeper diamond drilling holes at Theia have ended in mineralisation, supporting the interpretation that the deposit remains open – and highly prospective – at depth.
“This is another amazing performance by our exploration team and an exceptional result for shareholders. In the circa six months that has elapsed since our last MRE update, we have added 231,000 ounces of gold to the Mandilla MRE and delivered a major uplift in resource confidence levels,” Mr Ducler said.
“The substantial growth in the overall MRE is a particularly pleasing outcome, given that most of the drilling since the last update was in-fill.”
“To achieve this significant increase in indicated mineral resources and add new mineral resources at a cost competitive $18/oz is testament to the quality of the Mandilla gold project.”
Astral is now planning to take advantage of the already significant known resources by advancing technical mining studies.
“In light of this, we expect strong conversion of Mineral Resources into a sizeable production target in the upcoming scoping study,” Mr Ducler said.
Since producing its maiden Mandilla MRE in 2021, Astral has increased the estimated number by a 153% whilst the company’s consolidated MRE has leapt from 116,000 ounces at the start of 2021 to over 1.38 million ounces.
“We believe that Mandilla has the potential for further significant growth, and we are looking forward to the resumption of drilling in this current quarter.
“The 2024 financial year is shaping up as a transformational year for Astral, as we begin our transition from junior explorer to mine developer. We expect to be able to continue delivering Resource growth at our gold projects while simultaneously advancing our technical studies through the 2024 financial year.”
Gold project focus
Earlier this month Astral freed itself up to further focus on its Kalgoorlie area golden future when it converted its participating interest in the Koongie Park Joint Venture (KPJV) in WA’s Kimberley region with AuKing Mining (ASX: AKN) to a 1% Net Smelter Return (NSR) royalty.
Under the terms of the JVA, upon Astral’s participating interest in the KPJV diluting to below 10%, it was deemed that Astral has withdrawn from the KPJV and the remaining participating interest converts to the NSR Royalty.
Astral does retains the right to explore for and develop gold and other precious metals deposits within the Koongie Park project area, including platinum group elements.