Astro Resources NL (ASX:ARO) is in a strong financial position to move forward and create meaningful shareholder value after a successful and productive FY2021.
In addition to making excellent progress at its Needles Gold Project in Nevada, US, it has also made headway in its other major project – the Governor Broome Heavy Minerals Sands Project in the southwest region of Western Australia.
It also remains focused on extracting value for its East Kimberley Diamond Project.
In the financial year, the company appointed executive director Vince Fayad as interim chief executive officer, following an increase in his leadership duties, particularly over the last 18 months at both corporate and project levels.
Astro has three key projects: the Needles Project in the US and the Governor Broome Mineral Sands Project and East Kimberley Diamond Project in WA.
Key highlights for the year
Following a “very challenging” FY20, Astro had a productive FY21. The key highlights included:
➢ Significant chargeability anomaly confirmed at Needles Project;
➢ Resource update to the Governor Broome Project;
➢ Two tranches of capital raising of a total of $8.792 million and the repayment of debt facilities of $2.86 million; and
➢ Appointment of Vince Fayad as interim CEO.
Strong progress at Needles
Astro made strong progress at Needles Gold Project following its initial mapping exercise.
DC/IP electric and shallow seismic geophysical surveys were completed and followed up with detailed modelling, confirming the presence of a strong, robust chargeability anomaly that may be associated with gold mineralisation.
On the back of this, the company has plans to commence a diamond drilling program comprising three 500-metre deep drill holes to test the anomaly in November 2021.
Chairman Jacob Khouri said: “The proposed drilling campaign is an exciting step for Astro as it looks to discover significant economic mineralisation within this well-endowed region of the USA.”
The company has also engaged EM Strategies Inc, a Nevada-based environmental and permitting consulting company, to carry out required environmental studies across the target area should the company wish to expand its drilling program.
These studies are in progress and are expected to take a year to complete, which should coincide with any additional major works undertaken by the company.
Headway at Governor Broome
Astro also made significant headway in its other major project, the Governor Broome Heavy Minerals Sands Project, where a resource update was provided during the year on the back of drill programs carried out previously.
Work completed to date on the project points to a potential viable mining operation and, as a result, Astro will undertake a mine scoping study before proceeding towards a pre-feasibility study (PFS).
The JORC resource is 52 million tonnes at 4.6% Heavy Minerals (HM) of indicated resources and 6 million tonnes at 4% HM of inferred resources.
The bulk sampling exercise from the West Deposit and the sighter test for the East Deposit successfully demonstrated the amenability of the material sourced from the West Deposit to processing through the feed preparation circuit using conventional mineral sands processing equipment.
This result, coupled with the dry plant testing, demonstrated that the processing of the HM product successfully recovered ilmenite, zircon and garnet concentrates.
Rutile was also recovered to a non-magnetic concentrate containing the pyrite.
In short, the work completed to date on the Governor Broome Project points to a potential viable mining operation and, as a result, Astro will undertake a mine scoping study before proceeding towards a pre-feasibility study.
Committed to East Kimberly Diamond Project
Astro remains committed to continuing exploration at its East Kimberley Diamond Project.
It has engaged SRK to assist in the preparation of an application to extend the current licence beyond August 2021.
SRK will also review past work and will provide advice so that any future work will maximise the value for the project.
Financing
During the year, the company undertook two capital raisings, securing $8.792 million, which after repayment of long-standing debt facilities, it was able to advance work on its projects.
The company is now debt-free.
As part of the capital raising, Holdmark Property Group became a major shareholder with a 19.77% stake in the company.
Holdmark has been supportive of the company’s initiatives by participating in the second capital raising in February 2021.