Astral Resources has moved its Mandilla development closer to a definitive feasibility study while extending drilling at Theia and adding 281,000 ounces to its Spargoville resource base. The company ended September with A$59 million in cash after spending A$7.6 million during the quarter.
- Mandilla DFS targeted for the March quarter of 2027
- Theia Deeps program expanded to 21 holes and 11,000 metres
- Spargoville resource stands at 8.5Mt at 1.0g/t gold for 281koz
- WIN transaction completed for A$9.05 million plus GST
- Think Big approvals could support pre-mining in early 2027
Mandilla moves closer to feasibility decision
Astral Resources NL (ASX:AAR) has spent the September quarter turning Mandilla from an exploration story into a more defined development proposition, with land access agreements, tenure transactions and technical work all advancing ahead of a definitive feasibility study targeted for the March quarter of 2027.
The company says the Mandilla DFS is progressing to schedule, with site layouts complete and environmental and mining approval applications expected to be submitted during the December quarter. An independent technical expert has completed a “no red flags” review of the April 2026 mineral resource estimate and is expected to begin its mining and geology review in the same quarter.
That work is being supported by a substantial drilling campaign at Theia, Mandilla’s largest deposit. Astral completed 141 reverse-circulation holes for 14,468 metres and seven diamond holes for 4,465 metres during the quarter. Its 21-hole, 11,000-metre Theia Deeps program was expanded after continued success, with 18 holes completed and further drilling aimed at extensions below and along strike from the current resource.
The deep drilling builds on Theia Deeps drilling results, which previously included broad high-grade intersections below the existing resource pit shell. Astral reported assays from 11 diamond holes and 209 RC holes during and after the quarter, while the Stage 1 infill program continues across the proposed first open pit at Theia.
Spargoville adds ounces but remains outside the mine plan
Spargoville supplied the quarter’s clearest resource headline. An updated JORC 2012 estimate put the project at 8.5 million tonnes grading 1.0g/t gold for 281,000 ounces, including 186,000 ounces in the Indicated category. Indicated resources increased by 130% from the May 2025 estimate, although the update was constrained within pit shells based on a A$4,500 per ounce gold price and does not represent an ore reserve or production declaration.
The resource increase was driven partly by a larger optimised pit shell and revised interpretations. The company plans a phased 55-hole, 10,000-metre drilling program at Spargoville after the Theia infill campaign, with pad preparation already under way at the Spiders deposit. The updated resource is not included in the existing Mandilla pre-feasibility study, which means its eventual contribution to a development case remains unresolved. The estimate followed Spargoville’s resource upgrade, which more than doubled the project’s reported resource to 281,000 ounces.
Land control improves while cash declines
Astral completed the WIN Metals transaction on 5 October, paying A$8.05 million plus GST at completion, with a further A$1 million plus GST payable once one mining lease transfer is registered. The deal gives Astral title and broader mineral rights over tenure considered critical to the Mandilla footprint. It follows the WIN tenure transaction, which was described as a way to simplify permitting and financing pathways.
A separate agreement to acquire Estrella Resources’ nickel rights across the West Kambalda and Spargos tenements remains subject to shareholder, regulatory and other conditions. Consideration is 20 million Astral shares valued at A$3 million, with half of those shares subject to six months of voluntary escrow. The transaction was expected to complete in late October or early November, but the filing does not confirm completion.
Cash stood at A$59.0 million at 30 September, down from A$65.1 million three months earlier. Quarterly cash outflows were A$7.6 million, led by A$5.5 million of capitalised exploration and evaluation spending, while A$1.5 million of inflows included A$1.2 million in bank interest and A$0.3 million from option exercises. Based on its reported cash-flow calculation, Astral estimated 11.24 quarters of funding available, though that figure will change as drilling, permitting and development spending evolve.
Near-term execution now sits across several fronts: further Theia assays, the start of drilling at Spargoville and Kamperman, completion of the Mandilla DFS, and approval of the environmental and mining plans. Think Big may offer an earlier development test, with MDCP approval expected in the December quarter and pre-mining activities anticipated in the March quarter of 2027, subject to a processing contract and the joint venture proceeding.
Bottom Line?
Astral has assembled more control around Mandilla and preserved a sizeable cash balance, but the next value step depends on converting drilling, tenure and permitting progress into a credible DFS and funded development plan.
Questions in the middle?
- Will Theia Deeps drilling translate into a revised resource or reserve before the Mandilla DFS is completed?
- Can Astral secure the remaining approvals and processing arrangements needed for the proposed Think Big early-mining opportunity?
- How much of Spargoville’s 281,000-ounce resource can ultimately be incorporated into a mine plan without relying on the current higher gold-price pit assumptions?