Astral Resources NL (ASX:AAR) has delivered a strong June quarter update, highlighted by the release of a Pre-Feasibility Study (PFS) confirming the Mandilla Gold Project as a high-quality, long-life development opportunity.
The PFS outlines a production target of 1.4 million ounces of gold over a 19-year life-of-mine (13 years of mining) at an all-in sustaining cost (AISC) of A$2,085 per ounce. Based on a base case gold price of A$4,250 per ounce, the project is forecast to generate over A$2.8 billion in pre-tax free cashflow and A$6 billion in revenue, with a payback period of less than one year and a pre-tax net present value (NPV8) of A$1.4 billion.
Production and reserve outlook
Stage 1 production is expected to deliver an average 95,000 ounces of gold per annum at 1.13 grams per tonne (g/t) gold over 12 years, followed by Stage 2 production averaging 42,000 ounces per annum at 0.50 g/t gold over the remaining 6.5 years from low-grade stockpiles.
A maiden Probable Ore Reserve Estimate has been declared at 36.6 million tonnes (Mt) at 0.9 g/t gold for 1.1 million ounces. This includes 34.3Mt at 0.9 g/t for 1.0 million ounces at Mandilla and 2.3Mt at 1.2 g/t for 88,000 ounces at the Feysville Project.
Project updates: Mandilla and Feysville
An updated JORC 2012 Mineral Resource Estimate (MRE) for Mandilla now stands at 42Mt at 1.1 g/t gold for 1.43 million ounces. The consolidated Astral Group MRE is 50Mt at 1.1 g/t gold for 1.76 million ounces.
During the quarter, 3,961 metres of reverse circulation (RC) drilling was completed at Mandilla, targeting infill drilling at the Iris deposit and extensional drilling at Hestia. At Feysville, RC drilling totalled 2,914 metres across 20 holes at the Kamperman deposit, with assay results reported in June. Metallurgical testing at Feysville confirmed high recoveries using the same processing route as Mandilla.
Exploration success at Spargoville
The Spargoville Project reported a new MRE of 3Mt at 1.4 g/t gold for 139,000 ounces. A 42-hole, 6,212-metre RC drill program was undertaken during the quarter, part of a broader 90-hole campaign aimed at testing greenfields targets and the Spargoville Shear Zone over an eight-kilometre corridor.
Corporate activity and cash position
Astral ended the quarter with approximately A$18.6 million in cash. The company also completed the acquisition of Maximus Resources Limited on May 2, 2025, strengthening its project portfolio in Western Australia.