Astral Resources has delivered robust assay results from its ongoing in-fill drilling at the Theia deposit, underpinning a resource upgrade and further de-risking the early development phase of the Mandilla Gold Project near Kalgoorlie.
- 56 new holes confirm geological model at Theia
- Stage 1 open pit inventory targeted for Measured Resource upgrade
- 151 holes completed with 280 more planned in 2026
- Theia hosts 1.4Moz gold within a 41Mt resource
- Mandilla DFS on track for Q1 2027 completion
In-fill Drilling Strengthens Early Mine Plan
Astral Resources (ASX:AAR) has reported high-grade assay results from 56 reverse circulation (RC) holes totaling 4,970 metres at its Theia deposit, a cornerstone of the Mandilla Gold Project located about 70 kilometres south of Kalgoorlie. These results continue to validate the company's geological model and support upgrading the Stage 1 open pit inventory to the Measured Mineral Resource category, a critical step in de-risking the early years of mine development.
Theia’s Stage 1 open pit, outlined in the Mandilla Pre-Feasibility Study (PFS), contains 4.2 million tonnes at 1.1 grams per tonne gold for 146,000 ounces, planned for extraction over the first 21 months with a strip ratio of 4:1. The in-fill drilling program aims to reduce drill spacing to 12.5 metres by 12.5 metres, underpinning the confidence needed for project financing and Definitive Feasibility Study (DFS) completion.
Robust Assay Highlights and Geological Consistency
Among the standout intercepts are 31 metres at 3.03 g/t Au from 12 metres, including a 1-metre high-grade shoot at 59.8 g/t Au, and 19 metres at 2.70 g/t Au from 41 metres, featuring a 1-metre interval at 36.2 g/t Au. The average grade of all reported intercepts is 1.24 g/t Au, comfortably above the current Mineral Resource Estimate (MRE) grade for the Stage 1 pit. This consistency reinforces the reliability of the existing resource model.
Managing Director Marc Ducler emphasised the significance of these results: "The broad intercepts containing very high-grade shoots within quartz-sulphide veining confirm the intense alteration and mineralisation style at Theia. Upgrading to Measured Resources is a major milestone, supporting the first 16 months of mill feed and reducing project risk as we advance the DFS and secure financing." The program has completed 151 holes for 15,131 metres, with a further 280 holes planned through the remainder of 2026, keeping the RC rig busy.
Mandilla Project’s Strategic Position and Development Progress
The Mandilla Gold Project hosts a consolidated Mineral Resource Estimate of 53.5 million tonnes at 1.0 g/t Au for 1.74 million ounces, with Theia accounting for 1.4 million ounces within 41 million tonnes at 1.1 g/t Au. The project benefits from strong metallurgy, including high gravity recoverable gold and fast leach kinetics, which supports efficient processing and recovery.
The Mandilla PFS, released in mid-2025, envisages a standalone operation with seven open pits feeding a 2.75 million tonnes per annum processing plant, producing around 95,000 ounces annually for the first 12 years. At a gold price of A$4,250/oz, the project’s net present value (NPV8) is estimated at $1.4 billion, rising to $2.7 billion at A$6,000/oz.
The DFS is progressing on schedule, targeting completion in the March quarter of 2027. However, finalisation depends on heritage clearance surveys and consents under the Mineral Rights Agreement. Exploration activities at other project areas like Feysville and Spargoville remain on hold pending these surveys.
Exploration and Drilling Outlook
Besides the RC in-fill program, Astral is advancing a diamond drilling campaign targeting deeper extensions of Theia mineralisation, with assay results pending for five holes totalling 2,614 metres. Meanwhile, sterilisation drilling and exploration at other deposits await heritage approvals.
The company is also eyeing an early mining opportunity at the Think Big deposit in Feysville, which could generate cash flow as soon as the June quarter of 2027.
Bottom Line?
Astral’s continued in-fill success at Theia strengthens Mandilla’s early mine plan, but the DFS hinges on heritage clearances and financing milestones.
Questions in the middle?
- Will the in-fill drilling results translate into a timely upgrade to Measured Resources across all Stage 1 inventory?
- How might pending heritage clearance surveys affect the DFS timeline and early mining opportunities?
- What impact could fluctuating gold prices have on Mandilla’s project economics and financing strategies?