Mandilla and Feysville gold projects dominate Astral Resources’ workload

Studies and exploration activity at the Mandilla and Feysville gold projects in Western Australia have dominated the focus of Astral Resources’ (ASX: AAR) work for the three months ending 30 September.

The company recently announced the results of a scoping study for the $191 million Mandilla operation, which remains one of the largest undeveloped, free-milling, open pit gold projects in the Kalgoorlie region.

It was based on a standalone development comprising a 2.5 million tonnes per annum carbon-in-leach processing plant and associated infrastructure.

Highlights included a life-of-mine payable metal production target of 845,000 ounces at an all-in sustaining cost of $1648 per ounce; and a projected average gold production target of approximately 100,000 ounces per annum at an average feed grade of 1.3 grams per tonne gold over the first 7.4 years.

Production is expected to reduce to approximately 41,000ozpa at 0.5g/t when treating lower grade stockpiles over the remaining 3.4 years.

Updated resource estimate

In July, Astral announced an updated mineral resource estimate at Mandilla of 37 million tonnes at 1.1g/t gold for 1.27 million ounces of contained gold, encompassing the cornerstone Theia deposit and the Iris, Eos and Hestia deposits.

It was the fifth estimate published for the project within 26 months and added another 231,000oz of contained gold at an exploration cost of approximately $18 per new ounce discovered.

The resource was estimated using a 0.39g/t lower cut-off and is constrained within pit shells derived using a gold price of $2500 per ounce.

Feysville drilling

Astral completed 13,642 metres of drilling during the quarter, comprising 10,411m of reverse circulation work, 740m of diamond drilling and a 2491m aircore program.

In August, the company resumed a reverse circulation program at Feysville totalling 23 holes for 3202m at the Kamperman (eight holes), Ethereal (11 holes) and Hyperno (4 holes) targets.

Best results from Kamperman were 18m at 0.9g/t gold from 15m; 5m at 8.2g/t gold from 53m including 1m at 38.7g/t from 59m; and a bonanza 4m at 94.8g/t gold from 77m including 2m at 187.7g/t from 77m.

At Ethereal, five lines of holes located north and south of previous drilling were planned to test the stratigraphy however only one of them intersected the eastern-most ultramafic unit, returning 1m at 26.6g/t gold from 149m to the bottom-of-hole.

Drilling at Hyperno involved two lines of reverse circulation holes which were spaced 100m to the north of previous drilling, with a best intersection of 11m at 1.05g/t gold from 88m downhole.

Rock chip samples from each prospect have been submitted for geochemical assay and the results will be used for 3D stratigraphic modelling to assist in determining further exploration activities.

Cash position

Astral’s cash inflow for the quarter totalled $4.6 million and included the proceeds of a $3 million placement, a $1.6 million share purchase plan and bank interest of $3231.

Cash outflow of $1.9 million was attributed to exploration activity and costs relating to corporate, administration, staff and capital raising.

Payments to related parties and their associates totalled $143,100 and consisted of executive and non-executive director fees, salaries and superannuation payments.

At the end of the quarter, Astral had approximately $4.1 million cash at hand.