Mandilla PFS Targets 95koz Gold Annually at $2,085/oz AISC

Mandilla Project Overview

Astral Resources NL (ASX, AAR) has announced the results of its Pre-Feasibility Study (PFS) for the Mandilla Gold Project, a 100%-owned asset located near Kalgoorlie in Western Australia. The project includes the satellite Feysville deposits and benefits from a tier-one mining jurisdiction, offering a rare development opportunity with scale and quality.

The PFS outlines a life-of-mine (LoM) production target of approximately 1.4 million ounces of gold over 19 years, with 13 years of active mining. The study forecasts an average annual gold production of 95,000 ounces during the first 12 years (Stage 1) at an average grade of 1.13 grams per tonne, followed by a lower grade Stage 2 averaging 42,000 ounces per annum over 6.5 years.

Robust Economics and Ore Reserves

The maiden Probable Ore Reserve is estimated at 36.6 million tonnes grading 0.9 g/t gold, equating to approximately 1.1 million ounces. This reserve is underpinned by detailed geological modelling and mining studies, with all material modifying factors considered.

Financially, the project is compelling. At a conservative gold price assumption of A$4,250 per ounce, the PFS forecasts a pre-tax net present value (NPV8) of about A$1.4 billion and an internal rate of return (IRR) of 101%. Free cash flow before tax is projected to exceed A$2.8 billion, with a rapid payback period of less than one year. At a higher gold price of A$5,000 per ounce, these metrics improve significantly, with an NPV8 of A$2.0 billion and IRR of 136%.

Processing and Infrastructure

The project’s commercialisation strategy involves a 2.75 million tonnes per annum carbon-in-pulp (CIP) processing plant designed to achieve an average gold recovery of 95.5%. The processing circuit includes three-stage crushing, single-stage grinding, gravity concentration, leaching, and elution, supported by comprehensive metallurgical testwork confirming high recoveries and manageable reagent consumption.

Capital expenditure is estimated at A$227 million pre-production, covering the processing plant, infrastructure, and pre-production mining costs. Sustaining capital over the life of mine is forecast at A$80 million. The project benefits from existing infrastructure, including proximity to the Coolgardie-Esperance Highway and the town of Kambalda, with power supply options favouring a grid connection to reduce costs and carbon emissions.

Environmental and Social Framework

Astral has undertaken extensive environmental and social studies, including flora and fauna surveys, waste rock and tailings characterisation, and stakeholder engagement. The project area is predominantly on vacant crown land with a history of pastoral use. Native Title agreements are being negotiated with the Marlinyu Ghoorlie claimant group, and environmental approvals are progressing with submissions expected by late 2025.

Next Steps and Outlook

Following the positive PFS outcomes, Astral plans to advance the Mandilla Gold Project through a Definitive Feasibility Study (DFS), targeting completion by June 2026. Concurrently, the company will continue exploration to convert inferred resources to indicated status and pursue resource growth at Mandilla, Feysville, and the recently acquired Spargoville project. Permitting and financing discussions are also underway to support development.

With strong project fundamentals, a clear development pathway, and a supportive jurisdiction, Astral Resources is positioning Mandilla to become a significant mid-tier gold producer in Australia.