Astral Resources NL (ASX:AAR) has achieved a 22% increase in total contained ounces and a 69% increase in indicated resources at its Mandilla Gold Project, 70 kilometres south of Kalgoorlie in WA.
An updated mineral resource estimate (MRE) has been posted of 37 million tonnes at 1.1 g/t gold for 1.265 million ounces of contained gold, a notable advancement from the previous 1.03 million ounces announced in December.
The MRE was prepared by independent consultants Cube Consulting and incorporates the Theia, Iris, Eos and Hestia deposits.
Fifth MRE
This is the fifth MRE for Mandilla in 26 months and demonstrates Astral’s ability to continue to grow its mineral resources while conducting a predominantly infill drill program.
Of particular note is the flagship Theia deposit, which has crossed the elusive 1-million-ounce resource milestone within a single $2,500 pit shell, strengthening the project's development foundation.
This growth was driven by an infill drill program carried out over the last six months, resulting in a 69% increase in indicated mineral resources to 21 million tonnes at 1.1 g/t gold for 694,000 ounces.
Low-cost gold discovery
In addition to the infill drilling, 231,000 incremental ounces were discovered at an average cost of just $18 per ounce, pointing to the project's considerable potential for further growth.
The Theia deposit, which grows consistently with each drilling program, saw a resource increase of 143,000 ounces to 1.02 million ounces, with a 53% increase in the higher confidence indicated category, solidifying its standing as a rare deposit in the Eastern Goldfields.
Astral's total gold mineral resource now stands at 40 million tonnes at 1.1 g/t for 1.38 million ounces, inclusive of the MRE at the Feysville Gold Project, also near Kalgoorlie.
The MRE expansion, attributed to five successive resource upgrades at Mandilla, has positioned it to advance technical mining studies and enter mining study phases.
Astral is slated to integrate the updated mineral resource into a scoping study, scheduled for delivery in the first half of the 2024 financial year.
More ounces to come
Managing director Marc Ducler said: “This is another amazing performance by our exploration team and an exceptional result for shareholders.
“In the circa six months that has elapsed since our last MRE update, we have added 231,000 ounces of gold to the Mandilla MRE and delivered a major uplift in resource confidence levels.
“The substantial growth in the overall MRE is a particularly pleasing outcome, given that most of the drilling since the last update was infill.
“To achieve this significant increase in indicated mineral resources and add new mineral resources at a cost competitive $18/ounce is testament to the quality of the Mandilla Gold Project.
“The fact that we have been able to add these ounces at such a low discovery cost is a strong pointer to the potential that still remains to continue to add ounces to the Mandilla Project with additional drilling.”