Astral Resources has boosted its Mandilla Gold Project resource to 1.74 million ounces of gold, with drilling confirming significant mineralisation and the Definitive Feasibility Study progressing towards completion in early 2027.
- Mandilla MRE updated to 54Mt at 1.0g/t Au for 1.74Moz gold
- Extensive drilling at Theia deposit supports resource growth and Measured category upgrade
- Definitive Feasibility Study on schedule for Q1 2027 completion
- Proposed JV at Feysville’s Think Big deposit targets early cash flow in mid-2027
- Corporate cash at $65 million after exploration and stamp duty payments
Mandilla Resource Upgrade and Drilling Momentum
Astral Resources (ASX:AAR) has delivered a substantial update on its flagship Mandilla Gold Project, declaring an updated Mineral Resource Estimate (MRE) of 54 million tonnes at 1.0g/t gold for 1.74 million ounces of contained gold. This marks a 22% increase from previous estimates and cements Mandilla’s status as a major emerging gold development near Kalgoorlie, Western Australia.
The Theia deposit remains the project’s cornerstone, accounting for roughly 80% of the resource with 41 million tonnes at 1.1g/t for 1.39 million ounces. Recent drilling campaigns have been intensive: 148 reverse circulation (RC) holes totalling nearly 15,000 metres and 9 diamond drill (DD) holes focused on both in-fill and depth extensions. Notably, a maiden Measured Resource category was declared at Theia, with 1.3 million tonnes at 1.3g/t for 57,000 ounces, a milestone that de-risks the early mine plan and supports financing efforts.
Assay results continue to confirm broad, consistent gold mineralisation within laterally continuous quartz-sulphide veining. Highlights include high-grade intervals such as 8 metres at 10.5g/t gold, including exceptional 1-metre hits above 50g/t, and deep drilling intersections extending mineralisation over 200 metres below the current resource shell. Visible gold was observed in core samples, underscoring the deposit’s high-grade potential. The ongoing Theia Deeps diamond drilling program, recently expanded to 12 holes, aims to further delineate this deep mineralisation.
Definitive Feasibility Study Progress and Permitting
Astral’s Definitive Feasibility Study (DFS) for Mandilla is advancing steadily, with completion targeted for the first quarter of 2027. Technical work streams including mine design, capital and operating cost reviews, and an Independent Technical Expert report are underway. However, the pace of heritage clearance surveys; critical for finalising site layouts and submitting approvals; has slowed, posing a potential risk to the schedule.
In parallel, the company secured the Mandilla Homestead, a 21-hectare freehold parcel located 500 metres from the project site, for $850,000. This acquisition is strategic, simplifying land access and approvals by removing potential residential impacts, and providing a future base for exploration infrastructure and core storage.
Feysville Joint Venture Targets Early Cash Flow
Outside Mandilla, Astral is progressing a joint venture with Mineral Mining Services Pty Ltd (MMS) at the Feysville Gold Project’s Think Big deposit. The JV proposal involves MMS funding 100% of development costs, recouped from initial cash flows, with profit sharing thereafter. This arrangement aims to accelerate mining at Think Big, targeting production and cash flow by the June 2027 quarter, contingent on finalising commercial terms and heritage approvals.
Spargoville Drilling and Resource Definition
While no new drilling occurred at Spargoville during the quarter, assay results from a 12-hole resource definition program at the 5B deposit were reported. These results confirm high-grade gold continuity with intercepts such as 9 metres at 4.38g/t gold, supporting future resource updates. Spargoville’s 3 million tonne resource at 1.4g/t gold for approximately 139,000 ounces remains a valuable part of Astral’s regional portfolio, though it was excluded from the Mandilla PFS production target.
Financial Position and Outlook
Astral ended the quarter with approximately $65 million in cash, down from $73 million the previous quarter. The cash burn was primarily driven by exploration and evaluation expenditures (68%) and a $1.7 million stamp duty payment related to the 2025 acquisition of Maximus Resources Limited. The company maintains a strong cash runway, with nearly 11 quarters of funding available at current expenditure rates.
Looking ahead, Astral is focused on continuing its aggressive drilling programs at Theia to upgrade resources to Measured status, advancing the DFS and permitting processes, and progressing the Feysville JV towards early production. The pace and outcomes of heritage clearance surveys will be pivotal in maintaining the DFS timeline and unlocking the early mining opportunity at Think Big.
Investors should watch for forthcoming assay results from ongoing drilling campaigns and updates on JV finalisation and regulatory approvals, which will shape the development trajectory and capital requirements for Astral’s suite of gold projects.
Bottom Line?
Astral’s expanded Mandilla resource and advancing DFS mark key steps toward project development, but heritage clearance delays warrant close attention.
Questions in the middle?
- Will heritage clearance delays impact the timing of the Mandilla DFS and subsequent FID?
- How will the proposed joint venture at Feysville’s Think Big deposit influence Astral’s near-term cash flow and development strategy?
- To what extent can ongoing deep drilling at Theia extend the resource beyond current estimates and add value?