Mandilla DFS Milestone and JV Deal: What Risks Lie Ahead for Astral Resources?

Exploration Momentum at Mandilla and Beyond

Astral Resources has delivered a comprehensive update for the September 2025 quarter, highlighting significant exploration and development progress across its flagship Mandilla Gold Project and satellite assets in Western Australia. The company completed over 8,200 metres of reverse circulation drilling at Mandilla alone, focusing on infill programs at the Theia and Iris deposits, as well as testing mineralisation bridging these key zones. Assay results from 105 holes totaling more than 13,000 metres have been reported, reinforcing the presence of high-grade gold mineralisation and supporting resource growth.

Meanwhile, at the Feysville Gold Project, assay results from geotechnical and regional drilling continue to underpin the project's role as a valuable satellite feed source for Mandilla. Notably, Astral signed a Letter of Intent with Mineral Mining Services Pty Ltd to form a development partnership or joint venture for the Think Big deposit, aiming to accelerate its commercialisation with mining targeted to commence in the third quarter of 2026.

Mandilla DFS and Operational Readiness

Progress on the Mandilla Definitive Feasibility Study (DFS) is gathering pace with key appointments including Jed Whitford as Chief Operating Officer and Mathew Wilson as General Manager for Mandilla. GR Engineering Services has been contracted to design all process and non-process infrastructure, while Taylor Collison has been appointed as debt advisor to assist with financing. The DFS is targeted for completion by mid-2026, positioning Astral to make a Final Investment Decision in the September quarter and aiming for first gold production by the end of 2027.

Metallurgical test work continues to demonstrate excellent gold recoveries with low reagent consumption, further de-risking the project. The Mandilla PFS, announced earlier in 2025, outlined a standalone operation producing 95,000 ounces of gold annually for the first 12 years, with a base case net present value of $1.4 billion at A$4,250 per ounce gold price.

Spargoville and Regional Exploration

At Spargoville, Astral completed nearly 11,800 metres of RC drilling focused on testing greenfields targets and extensions to known mineralisation along an eight-kilometre corridor. Assay results from 74 holes have been reported, including promising intercepts at deposits such as Eagles Nest, Trapdoor, and Lindsay’s Reward. While the Spargoville Mineral Resources are not currently included in the Mandilla PFS production target, the tenure supports infrastructure planning and future growth potential.

Financial Position and Corporate Developments

Financially, Astral maintains a strong cash position of approximately $15.9 million as at 30 September 2025, bolstered by nearly $5 million in proceeds from option exercises received post-quarter. Quarterly cash outflows were primarily directed towards exploration activities, reflecting the company’s commitment to advancing its project pipeline. Corporate governance remains robust with ongoing disclosures and compliance aligned with ASX requirements.

Additionally, Astral executed a Land Use Agreement with the Marlinyu Ghoorlie Native Title Claimant Group, facilitating heritage protocols and mining lease progress at Feysville, including the Think Big deposit. This agreement underscores the company’s commitment to responsible and collaborative development with traditional owners.