Astral Resources has formalised a Land Use Agreement with the Marlinyu Ghoorlie group covering key tenements at Mandilla and Spargoville, underpinning the path to mine development and heritage protection.
- Land Use Agreement signed with Marlinyu Ghoorlie Native Title Claimant Group
- Agreement covers Mandilla and Spargoville tenements, enabling mining activities
- Mandilla Definitive Feasibility Study on track for March 2027 completion
- All tenements in Mandilla DFS now covered by Land Use Agreements
- Agreement includes heritage protection protocols and Marlinyu Ghoorlie participation
Land Use Agreement Strengthens Project Foundations
Astral Resources NL (ASX:AAR) has taken a significant step towards advancing its Mandilla Gold Project with the execution of a Land Use Agreement (LUA) between its subsidiary Mandilla Gold Pty Ltd and the Marlinyu Ghoorlie Native Title Claimant Group. This new agreement covers the Mandilla and recently acquired Spargoville tenements, located about 70km south of Kalgoorlie, Western Australia.
The LUA establishes a cooperative framework designed to balance Astral’s mining ambitions with the protection of Aboriginal cultural heritage. It sets protocols for heritage surveys, site protection, and clearance procedures essential for facilitating mining activities while respecting native title interests. Importantly, the agreement also formalises opportunities for the Marlinyu Ghoorlie people to participate in project activities and receive compensation for native title impacts.
Comprehensive Coverage Across Key Tenements
This latest LUA follows a similar agreement signed in October 2025 covering the Feysville tenements, meaning all tenements subject to the ongoing Mandilla Definitive Feasibility Study (DFS) are now governed by Land Use Agreements. The DFS, which is progressing on schedule, is due for completion in the March quarter of 2027 and will provide the detailed technical and economic foundation for mine development.
Mandilla’s resource base is substantial, with an updated Mineral Resource Estimate announced in April 2026 of 53.5 million tonnes at 1.0 g/t gold, containing approximately 1.74 million ounces of gold. Meanwhile, Spargoville holds 3 million tonnes at 1.4 g/t gold for 139,000 ounces. These figures underpin the project’s potential scale and economic viability.
Economic Potential Backed by Feasibility Studies
Astral’s June 2025 Preliminary Feasibility Study (PFS) for Mandilla, which included Feysville deposits, envisaged a standalone operation with seven open pits feeding a 2.75 million tonnes per annum processing facility. The base case assumed a gold price of A$4,250 per ounce, delivering a net present value (NPV) of A$1.4 billion at an 8% discount rate. At a higher gold price of A$6,250 per ounce, the NPV nearly doubles to A$2.9 billion, highlighting the project’s sensitivity to gold price fluctuations.
Managing Director Marc Ducler emphasised the importance of the LUA in cementing a collaborative relationship with the Marlinyu Ghoorlie people, stating that it provides a clear framework for protecting cultural heritage and formalising indigenous participation. With all Mandilla DFS tenements now covered by Land Use Agreements, Astral is positioned to push forward with finalising the DFS, securing mine development approvals, and advancing towards construction.
Balancing Development and Cultural Heritage
The agreement reflects a broader industry trend towards embedding indigenous partnerships and heritage protections into project development. By proactively engaging with the Marlinyu Ghoorlie group, Astral aims to minimise heritage impacts and foster goodwill, which can be critical in navigating regulatory and social licence hurdles.
While the announcement does not disclose specific financial terms or detailed timelines beyond the DFS completion date, the LUA’s execution removes a key uncertainty for the project’s advancement. It also signals to investors and stakeholders that Astral is committed to responsible development and community collaboration.
Bottom Line?
The Land Use Agreement clears a crucial path for Mandilla’s development, but the real test will be how quickly Astral navigates the remaining approvals and transitions from feasibility to mine construction.
Questions in the middle?
- How will the Land Use Agreement influence the timeline for Mandilla’s mine development approvals?
- What specific participation opportunities and compensation mechanisms will be implemented for the Marlinyu Ghoorlie people?
- Could evolving heritage protection protocols impact exploration or mining activities at Spargoville or Feysville?