Astral Resources NL (ASX:AAR) has wrapped up a busy December quarter marked by intensive drilling at its flagship Mandilla Gold Project in Western Australia, steady progress towards a definitive feasibility study and a sharply strengthened balance sheet following a $65 million capital raising.
The gold-focused explorer completed more than 13,000 metres of drilling across Mandilla during the quarter, while also advancing permitting and development milestones at its nearby Feysville project and continuing exploration at Spargoville. By quarter-end, Astral reported cash of approximately $76 million, up from $15.9 million at the end of September.
Map illustrating the location of the Astral’s Mandilla, Spargoville and Feysville Gold Projects.
Mandilla drilling builds confidence in early mining stages
At the Mandilla Gold Project, Astral completed 73 reverse circulation (RC) holes for 10,676 metres and 14 diamond holes for 2,783 metres during the quarter. Drilling was largely concentrated on in-fill, extensional and sterilisation programs at the Theia, Hestia and Eos deposits.
Map of Mandilla Gold Project showing gold deposits on local area geology.
A key focus was the 99-hole RC in-fill program at the Theia deposit, which underpins the early stages of the proposed open pit mine plan. Assay results from 82 holes were reported during the quarter, with management saying the results closely matched the existing 2025 mineral resource model and validated the robustness of the geological interpretation.
Map of Theia illustrating drill collar locations of recent and historical drilling on local area geology.
Theia hosts an existing resource of 33.3 million tonnes at 1.1g/t gold for 1.2 million ounces and is expected to contribute around three-quarters of total production outlined in the Mandilla preliminary feasibility study (PFS).
Diamond drilling during the quarter targeted a high-grade structural zone known as the “230 shear” at Theia, potential sub-parallel mineralised structures beneath later-stage pit shells, and geotechnical work at Hestia and Eos.
Cross-section through Theia illustrating drill trace, assay results and geological interpretation.
Feysville milestones support early production pathway
At the Feysville Gold Project, Astral completed 17 RC holes for 2,954 metres at the Kamperman deposit, targeting in-fill and extensional mineralisation. Assay results from this program are pending.
More strategically, the company secured several development milestones during the quarter:
- a letter of intent with Mineral Mining Services Pty Ltd for a potential development partnership at the Think Big deposit
- execution of a Land Use Agreement with the Marlinyu Ghoorlie Native Title Claimant Group
- grant of Mining Lease M26/846 covering the Think Big and Rogan Josh deposits
The mining lease grant clears a key regulatory hurdle and supports Astral’s stated ambition to bring Think Big into early production, potentially ahead of the larger Mandilla development.
Map of Feysville Gold Project denoting the newly granted Mining Lease M26/846.
DFS workstreams move forward
Astral continued to advance technical and operational workstreams for the Mandilla definitive feasibility study, which is targeted for completion by mid-2026.
During the quarter, the company finalised several key appointments, including senior operational leadership and engineering and project management consultants. Water exploration tenure was also granted, with water access flagged as a high-priority focus for the March quarter.
Astral is targeting a final investment decision in the September 2026 quarter, which would position first gold production at Mandilla by the end of 2027.
Balance sheet strengthened by placement and option exercises
The company’s financial position was materially bolstered during the quarter following completion of the first tranche of a two-tranche placement, raising about $63.3 million before costs. A second tranche, along with director participation, is subject to shareholder approval at a general meeting scheduled for January 23, 2026.
Additional cash inflows came from the exercise of listed options, contributing around $5 million during the period.
With exploration and evaluation expenditure accounting for the majority of quarterly cash outflows, Astral ended December well funded to continue drilling, feasibility work and permitting across its Mandilla, Feysville and Spargoville projects near Kalgoorlie.
The company said drilling programs across Mandilla and Spargoville resumed in early January, setting up another active quarter of exploration and development work.
Map of Spargoville Gold Project identifying gold deposits on local area geology.