Astral Resources NL (ASX:AAR) continues to deliver robust resource growth with an updated mineral resource estimate (MRE) for its Feysville Gold project in Western Australia of 5 million tonnes at 1.2g/t gold for 196,000 ounces, including maiden MREs for the Kamperman and Rogan Josh deposits and an updated MRE for Think Big.
Including the Mandilla MRE of 37 million tonnes at 1.1g/t gold for 1.27 million ounces of contained gold, Astral’s total gold MRE is now 42 million tonnes at 1.1g/t gold for 1.46 million ounces of contained gold.
Astral explained that the the Feysville MRE used a 0.39g/t gold lower cut-off and is constrained within pit shells derived using a gold price of A$2,500 per ounce — the same price as incorporated in the Mandilla MRE.
The company added that the assay results reported last month from the recently completed 31-hole/3,834 metre reverse circulation (RC) program at Kamperman were not incorporated into the Kamperman MRE, representing further upside potential given the Kamperman deposit remains open at depth and along strike.
Several 100,000-ounce open pit opportunities
Astral Resources managing director Marc Ducler said: “When we returned to drilling at Feysville in November 2022, we did so with a view to building critical mass to support our flagship Mandilla Gold Project.
“As our understanding of Feysville increased, we formed the view that the highly-underexplored Feysville tenement package had the potential to contribute several 100,000-ounce open pit opportunities to the broader Mandilla Gold Project as contemplated in the Mandilla scoping study.
“With today’s Feysville MRE announcement, Astral is well on the way to delivering on this potential.
“The Mineral Resource Estimates across both Mandilla and Feysville are now consistently reported within pit shells incorporating a A$2,500 gold price and cut-off grades of 0.39g/t gold.
“While we acknowledge that using a gold price of A$2,500 to constrain the Feysville MRE is too conservative given the current spot gold price exceeds A$4,000, we intend to update the group MRE using a more appropriate gold price and cost assumptions as the current data becomes available through advancement of the Mandilla PFS.
"To adjust revenue pricing assumptions prior to gaining certainty over cost assumptions is not considered appropriate.
“Importantly, the maiden Kamperman MRE has yielded a 1.3g/t open pit resource with a 5.9:1 strip ratio. Given our intention is to use a gold price of at least A$2,600 for pit design for the Mandilla PFS, we are very confident that a strong conversion of this resource into the production target will be achieved and, hence, make a material contribution to the economics of the Mandilla PFS.
Further significant growth potential
Ducler added: “It is also important to note that the Kamperman deposit offers further significant growth potential based on the results of the recent 31-hole/3,834 metre reverse circulation (RC) drill program recently completed.
“These results are not included in the Kamperman MRE; however, one of the reported intercepts – 3 metres at 177g/t gold from 74 metres as part of a broader intersection of 25 metres at 24.3g/t gold from 68 metres in hole FRC3785 – is quite outstanding and suggests there to be scope for considerable upside with further drilling.
“Similarly, the supergene deposits present at both the Think Big and Rogan Josh MREs are also likely to have a very high conversion rate into a production target.
“Astral remains committed to further increasing the group MRE through extensional drilling, as well as increasing the geological confidence levels – and, hence, MRE categories – through further in-fill drilling.
“Two rigs are currently on site at Mandilla, a diamond drill rig and an RC rig, with the RC rig expected to relocate to Kamperman before the Christmas period for further in-fill and extensional drilling.
“Astral expects to report revised MREs for both Mandilla and Feysville in Q1 next year, ahead of the anticipated completion of the Mandilla PFS in Q2 2025.”