Astral Resources NL (ASX:AAR) earlier this week reported a substantial upgrade to the mineral resource at the Mandilla Gold Project in Western Australia, lifting its consolidated resource base to approximately 2.07 million ounces of gold.
Managing director Marc Ducler said the updated Mandilla resource now stands at 1.74 million ounces, representing a 22% increase and adding around 310,000 ounces. He described Mandilla as the “flagship” deposit that underpins the broader project, highlighting its scale at 54 million tonnes grading 1.0g/t gold.
Ducler emphasised that increased drilling density has significantly improved confidence in the resource. He noted that infill drilling at 12.5m by 12.5m spacing has delivered measured resources, the highest confidence classification, and that both grade and contained ounces have held firm or improved compared to earlier estimates. He said this outcome validates the company’s resource estimation methodology and provides greater certainty as the project advances toward development.
The company is also assessing underground potential beneath the existing open pit. Ducler stated that a conceptual study indicates underground mining could be economically viable, with costs estimated at around A$135–$140 per tonne. Early drilling results suggest the mineralisation could extend approximately 180 metres below the current pit design, with assays pending to confirm this potential.
In terms of funding and development readiness, Ducler pointed to a strong financial position, with $73 million in cash. He added that a potential agreement related to the Think Big deposit could generate a further $50 million in cash flow, strengthening the balance sheet. Combined with the possibility of securing around $200 million in project debt, Astral Resources appears well positioned to progress Mandilla toward production.
Looking ahead, the company continues to advance exploration across its broader tenement package, including Feysville and Spargoville. Ducler highlighted that Astral Resources already has a 17-year mine life outlined in its pre-feasibility study, with further exploration offering upside through additional resources and potential higher-grade “sweeteners” to enhance project economics.
Overall, the upgraded resource, strong financial footing and ongoing exploration activity position Astral Resources to deliver key catalysts in the near term, including further drilling results, feasibility study progress and potential development milestones.
Key highlights
- Astral Resources increases total mineral resources to 2.07Moz gold
- Mandilla Gold Project resource rises 22% to 1.74Moz
- Resource now totals 54Mt at 1.0g/t gold
- Improved drilling density delivers high-confidence measured resources
- Resource estimate validated with stable/improving grade and ounces
- Strong potential for underground expansion at depth
- Early drilling suggests ~180m extension below current pit
- Conceptual study indicates economic underground mining viability
- Company holds $73M cash, with potential $50M additional funding
- Exploration ongoing across Mandilla, Feysville, and Spargoville
- Pre-feasibility outlines 17-year mine life potential
Proactive: Welcome back to Proactive Investors. I'm your host Kerry Stevenson. I'm joined by Marc Ducler, Managing Director of Astral Resources. The company has announced a significant resource estimate upgrade, around a 22% increase. Marc, good to see you.
Marc Ducler: Thanks for having us on.
Proactive: You’ve had success in the past. Let’s talk about this resource increase and why investors should take notice.
Marc Ducler: We updated the Mandilla resource today, and it’s grown to 1.4 million ounces. It’s the flagship deposit underpinning the entire Mandilla Gold Project. Importantly, we’ve increased drilling density to 12.5m by 12.5m, which gives us measured resources — the highest confidence level. Compared to January 2022, both ounces and grade have actually improved, which validates our resource estimation methodology.
Proactive: And what about potential at depth?
Marc Ducler: We’ve always believed the deposit is open at depth. We completed a conceptual study showing underground mining could be viable. We’ve drilled down to about 690m and see potential to extend mineralisation by another 180m. We’re waiting on assays, but visually it looks promising.
Proactive: Is the focus mainly on Mandilla now?
Marc Ducler: At the moment, yes. But we’re also progressing exploration across Feysville and Spargoville. We have multiple targets and expect exploration to continue for several years.
Proactive: How does this translate into long-term value?
Marc Ducler: We already have 17 years of mineralisation outlined in the pre-feasibility study. Additional exploration could enhance that further. Any higher-grade material we find will significantly improve project economics.
Proactive: Why should investors pay attention right now?
Marc Ducler: We now have 2.1 million ounces in total resources and $73 million in cash. We’re also working on an agreement that could generate around $50 million in additional cash flow. Combined with potential debt funding, we’re well positioned to move Mandilla into production.
Proactive: Thanks for your time, Marc.
Marc Ducler: Thanks, Kerry.