Astral Resources NL (ASX:AAR) strengthened the development case for its flagship Mandilla Gold Project during the June 2026 quarter, delivering an updated 1.74-million-ounce Mineral Resource, completing almost 19,600 metres of drilling and progressing the definitive feasibility study towards a targeted March quarter 2027 completion.
The company also advanced a potential early-production opportunity at the Think Big deposit within its Feysville Gold Project and ended the quarter with approximately A$65 million in cash, leaving it well funded to continue drilling, technical studies and project approvals.
The June quarter work program centred on improving confidence in the Mandilla resource, testing the substantial depth potential beneath the proposed Theia open pit and de-risking the project ahead of a future final investment decision.
Mandilla resource grows to 1.74 million ounces
Astral announced an updated Mineral Resource Estimate for Mandilla of 53.5 million tonnes at 1.0 g/t gold for 1.74 million ounces of contained gold.
The resource includes 1.3 million tonnes at 1.3 g/t gold for 57,000 ounces in the Measured category, 32.6 million tonnes at 1.0 g/t for 1.09 million ounces in the Indicated category and 19.6 million tonnes at 0.9 g/t for 588,000 ounces in the Inferred category.
Theia remains the cornerstone of Mandilla, accounting for around 80% of the project’s gold resource.
The deposit hosts 41 million tonnes at 1.1 g/t gold for 1.39 million ounces, including the maiden Measured Resource of 57,000 ounces established after close-spaced reverse circulation drilling.
The remaining Mandilla resource comprises 6.5 million tonnes at 0.8 g/t for 159,000 ounces at Iris, 3.7 million tonnes at 1.0 g/t for 118,000 ounces at Eos and 2.4 million tonnes at 1.0 g/t for 73,000 ounces at Hestia.
Including Feysville and Spargoville, Astral’s consolidated group Mineral Resource stands at 61.6 million tonnes at 1.0 g/t gold for approximately 2.07 million ounces.
The group also holds total Ore Reserves of 36.6 million tonnes at 0.9 g/t for about 1.08 million ounces, comprising reserves from Mandilla and Feysville.
Major drilling campaign supports development plan
Astral completed 19,598 metres of drilling at Mandilla during the quarter, including 148 reverse circulation holes for 14,782 metres and nine diamond holes for 4,816 metres.
The reverse circulation program focused on in-fill drilling across the proposed first two stages of the Theia open pit outlined in the Mandilla pre-feasibility study.
A total of 132 holes for 13,275 metres was completed across the Stage 1 pit area, while 16 holes for 1,507 metres targeted Stage 2.
The Stage 1 program is designed to convert resources into the Measured category, increasing confidence in the early mine schedule and supporting financing, reserve estimation and the definitive feasibility study.
Results reported after the end of the quarter included several strong high-grade intersections.
Among the best were 4 metres at 16.4 g/t gold from 58 metres, including 1 metre at 61.3 g/t; 10 metres at 5.13 g/t from 37 metres, including 1 metre at 41.8 g/t; and 2 metres at 22.0 g/t from 44 metres, including 1 metre at 43.5 g/t.
Further results included 6 metres at 6.82 g/t from 70 metres, 9 metres at 5.14 g/t from 77 metres and 16 metres at 2.3 g/t from 114 metres.
Astral said the results continued to validate the geological interpretation and Mineral Resource model at Theia, where gold is hosted in broad, laterally continuous zones of quartz-sulphide veining.
The Stage 1 drilling campaign is expected to continue through the remainder of 2026, with further Stage 2 in-fill drilling to follow.
Theia Deeps points to substantial growth potential
The company also made progress with the Theia Deeps diamond drilling program, which is testing the mineralised system beneath the current Mineral Resource and the proposed Stage 5 open pit.
Originally planned as a six-hole, 3,000-metre campaign, the program was expanded to 12 holes for around 7,500 metres after early drilling returned encouraging results.
Nine holes for 4,816 metres were completed during the June quarter.
One of the standout holes returned a combined intersection of 358.23 metres at 1.03 g/t gold from 256.17 metres.
The mineralisation extended to a downhole depth of more than 614 metres and reached around 210 vertical metres below the existing Mineral Resource.
Higher-grade intervals within the broad intersection included 15.7 metres at 3.40 g/t gold and 127.27 metres at 1.20 g/t.
Another hole returned 268.41 metres at 0.70 g/t gold from 356.88 metres, including 45.53 metres at 2.15 g/t.
The hole also intersected 22 metres at 0.63 g/t from 714 metres, around 350 metres below the base of the proposed Theia open pit.
Further drilling returned 54 metres at 2.38 g/t gold from 316 metres and 52.6 metres at 1.48 g/t from 389.4 metres.
Astral said the deep intersections demonstrated that the Theia mineralised system remained extensive below the current resource envelope and could support future resource growth.
Definitive feasibility study progresses
Technical work for the Mandilla definitive feasibility study continued during the quarter, with mine design, scheduling, capital cost and operating cost work streams advancing.
The company has received capital and operating cost estimates, which are now under internal review, while preparation of an independent technical expert report is underway.
Detailed mine designs, production schedules and mining cost estimates are also being developed.
Astral is targeting completion of the definitive feasibility study during the March quarter of 2027, with a final investment decision expected to follow shortly afterwards.
The earlier pre-feasibility study outlined a standalone operation based on seven open pits feeding a 2.75-million-tonne-per-annum processing plant.
That study forecast average production of 95,000 ounces of gold per year during the first 12 years.
Using a base-case gold price of A$4,250 per ounce, the project generated a net present value of A$1.4 billion. At a gold price of A$6,000 per ounce, the estimated net present value increased to A$2.7 billion.
Spargoville was not included in the pre-feasibility study, leaving potential for future resources from that project to supplement the broader development strategy.
Heritage surveys and land acquisition support approvals
Heritage clearance surveys are underway across the broader Mandilla tenure, although Astral said progress had been slower than expected.
The delay could affect the timing of final site layouts, but the company still expects layouts to be completed during the September quarter.
Completion of the layouts would allow the company to progress submissions for a Native Vegetation Clearing Permit, Mine Development and Closure Plan and Works Approval.
Astral also acquired the Mandilla Homestead, a 21-hectare freehold property about 500 metres from the project, for A$850,000.
Settlement is scheduled for around August 10, 2026.
The purchase is intended to simplify access, reduce the potential impact of development on nearby residents and support the approvals process.
The property could also become an operational and exploration base, allowing Astral to relocate its core yard and associated infrastructure closer to the project.
Think Big offers potential early cash flow
At Feysville, Astral continued to progress a proposed development partnership and joint venture with Mineral Mining Services for the Think Big deposit.
Under the proposed structure, Mineral Mining Services would fund 100% of the development costs, with those costs recovered from initial project cash flows.
After cost recovery, profits would be shared, with the development partner receiving between 30% and 50%.
Subject to final commercial terms, approvals and execution of a binding joint venture agreement, mining is targeted to begin during the first half of 2027.
This could allow Think Big to generate cash flow during the June 2027 quarter, around the same period Astral is targeting a final investment decision for Mandilla.
Feysville hosts a Mineral Resource of 5 million tonnes at 1.2 g/t gold for 196,000 ounces and was included as a satellite ore source in the Mandilla pre-feasibility study.
Spargoville drilling delivers high-grade results
At the Spargoville Gold Project, Astral reported results from a 12-hole, 1,517-metre resource definition campaign completed at the 5B deposit.
The program was designed to confirm historical drilling and fill gaps in the existing resource interpretation.
Results included 9 metres at 4.38 g/t gold from 108 metres, including 2 metres at 10.3 g/t; 4 metres at 8.31 g/t from 97 metres, including 1 metre at 29.1 g/t; and 4 metres at 4.95 g/t from 100 metres.
The 5B deposit currently hosts 40,000 tonnes at 4.2 g/t gold for approximately 5,000 ounces.
Astral said an updated resource estimate would be required before determining the next phase of work.
Next steps
Two drill rigs are operating at Mandilla, with work continuing across the Theia Deeps and Stage 1 in-fill programs.
Astral had completed 151 holes for 15,131 metres of the planned 431-hole, 44,400-metre Stage 1 campaign at the time of reporting.
Additional diamond holes have been added to improve confidence in recently identified deep mineralisation and test the system further along dip and up-dip.
Sterilisation drilling will also continue as heritage clearances are received.
Planned reverse circulation and diamond drilling at the Kamperman deposit at Feysville and the Spiders complex at Spargoville remains on hold pending completion of heritage surveys.
The company’s key milestones are the finalisation of project layouts, submission of major approvals, completion of the definitive feasibility study and preparation for a final investment decision in 2027.
About Astral Resources
Astral Resources is a Western Australian gold exploration and development company focused on the Mandilla Project, around 70 kilometres south of Kalgoorlie.
The project includes the Mandilla, Feysville and Spargoville gold assets, which together host more than 2 million ounces of Mineral Resources.
Astral’s strategy is centred on developing Mandilla as a standalone gold operation, expanding the Theia deposit through deeper drilling and pursuing earlier production opportunities from satellite deposits such as Think Big.