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Astral Resources
Overview
Astral Resources (ASX:AAR) is a gold mineral exploration company with three gold projects in tier 1 mining jurisdictions of Western Australia. The three assets are the Mandilla gold project, the Feysville gold project, and the Carnilya Hill gold project. The flagship and 100 percent owned Mandilla gold project has a mineral resource containing 1.27 million ounces (Moz) of contained gold. The other key project, 100 percent owned Feysville, hosts an updated mineral resource estimate of 5.0Mt at 1.2g/t gold for 196koz of contained gold . Feysville could potentially become a satellite source of high-grade ore feed for the flagship Mandilla gold project.
The scoping study completed at Mandilla unveils robust project economics. The cornerstone of the scoping study is the Theia deposit, which alone accounts for 81 percent of the total Mandilla mineral resource estimate. The deposit hosts a mineral resource estimate of 29 Mt at 1.1 g/t gold for 1.02 Moz of contained gold in one large open pit. The scoping study indicates a mine life of 11 years with an annual production of 100,000 oz in the first seven and a half years, dropping to 41,000 oz for the remaining three and a half years. The study outlines compelling financial metrics, including NPV@8 percent of AU$442 million, free cash flow of AU$740 million, and a payback period of nine months.
Astral Resources intends to increase production further. The assay results from the six-hole 1,832-metre drilling program completed at Theia deposit last year indicate a high potential for converting inferred resources to higher confidence indicated resources. Feysville presents another exciting opportunity, which is evident from the recent assay results at the Kamperman prospect. In 2023, Astral drilled 10 holes at Kamperman intersecting high-grade gold, including 4 metres at 94.8 g/t gold, 21 metres at 4.16 g/t gold, 35 metres at 2.19 g/t gold, 10 metres at 4.57 g/t gold, and 5 metres at 5.89 g/t gold.
The presence in Western Australia, a tier 1 mining jurisdiction, is encouraging and should comfort investors. Western Australia has world-class infrastructure and a skilled workforce. The Fraser Institute ranked it fourth globally and first in Australia as the most attractive jurisdiction for mining investment in 2023.
Astral benefits from a team of professionals boasting extensive expertise in geology and mining. The company is led by managing director Marc Ducler, who has more than two decades of experience in the mining industry. The management team has a proven track record of executing several successful exploration and development projects, as well as M&A.
Company Highlights
- Astral Resources is an ASX-listed gold exploration company in the Kalgoorlie region of Western Australia, a tier 1 jurisdiction and a mature mining region with successful development history and granted mining leases.
- The company has three assets - the Mandilla gold project, the Feysville gold project, and the Carnilya Hill gold exploration project.
- The focus is on advancing its flagship Mandilla gold project, with a mineral resource estimate of 37 Mt at 1.1 g/t gold for 1.27 Moz.
- The scoping study at Mandilla highlights the project’s robust economics with a mine life of 11 years, NPV@8 percent of AU$442 million, and free cash flow of AU$740 million.
- Mandilla’s cornerstone Theia deposit, which comprises 81 percent of the project’s resources, contains 29 Mt at 1.1 g/t gold, with 1.02 Moz of contained gold in one large open pit.
- Updated JORC 2012 mineral resource estimate (MRE) at the Feysville gold project is 5.0Mt at 1.2g/t gold for 196koz of contained gold.
- Including the Mandilla MRE of 37Mt at 1.1g/t gold for 1.27Moz of contained gold, Astral’s total gold MRE is now calculated to be 42Mt at 1.1g/t gold for 1.46Moz of contained gold (Group MRE).
- The company is led by an experienced team with a proven track record of advancing projects to development and M&A.
Key Projects
Mandilla Gold Project
The Mandilla gold project is located within the northern region of the Widgiemooltha greenstone belt, approximately 70 kilometers to the south of the prominent mining hub of Kalgoorlie, Western Australia. Mandilla includes four deposits namely, Theia, Iris, Eos and Hestia. The cornerstone of the project is the Theia deposit, constituting 81 percent of Mandilla's resources, totaling 29 Mt at a grade of 1.1 g/t gold, amounting to 1.02 Moz of contained gold in a single open pit. We note that Mandilla has a total mineral resource estimate of 37 Mt at 1.1 g/t gold for 1.27 Moz.
The scoping study indicates a mine life of 11 years with an annual production of 100,000 oz in the first seven and a half years, dropping to 41,000 oz for the remaining three and a half years. Astral estimates the pre-production capital spend at AU$191 million, and the project is anticipated to generate a free cash flow of AU$740 million (assuming a gold price of A$2,750/oz). The project’s NPV @8 percent is estimated at AU$442 million, and the IRR at 73 percent.
Drill collars at Theia deposit
Astral continues to advance exploration and resource expansion efforts at Mandilla. The company completed a six-hole 1,832 metre drilling program at Theia deposit last year. The assay results have been released and indicate a high potential for the conversion of inferred resources to higher confidence indicated resources. The assay results include: 39 metres at 5.4 g/t gold, 29 metres at 2.8 g/t gold, 28 metres at 1.4 g/t gold, 8 metres at 8.8 g/t gold.
Astral is planning to commence a pre-feasibility study at Mandilla.
Feysville Gold Project
The Feysville project is situated in Australia's premier gold belt, merely 14 km south of the Golden Mile deposit, which boasts 70 million ounces, located in Kalgoorlie. The project's updated JORC 2012 mineral resource estimate (MRE) indicates 5.0Mt at 1.2g/t gold for 196koz of contained gold. Including the Mandilla MRE of 37Mt at 1.1g/t gold for 1.27Moz of contained gold, Astral’s total gold MRE is now calculated to be 42Mt at 1.1g/t gold for 1.46Moz of contained gold (Group MRE).
At Feysville, Astral is focusing on the high-grade Kamperman prospect. A recent 19-hole 2,459 reverse circulation (RC) drilling program at Kamperman returned encouraging assay results. The latest drilling program yielded significant assay results in 14 out of 19 RC holes. This high success rate continues to indicate that Kamperman has the potential to be a substantial source of high-grade satellite ore for the Mandilla processing plant. A further 2,500-metre follow-up RC program is planned to extend known mineralization at Kamperman beyond the current 350-metre strike length.
Carnilya Gold Project
The Carnilya Hill gold project is situated about 20 kilometers south-southeast of the company's Feysville project and approximately 40 kilometers southeast of Kalgoorlie, Western Australia. The project encompasses various tenements – M26/047-049, M26/453 – spanning approximately 2.65 sq. km. Astral holds rights for gold mining, while Mincor Resources NL (ASX:MCR) holds rights to nickel and other minerals.Management Team
Mark Connelly – Non-executive Chairman
Mark Connelly is a mining industry veteran who has held positions of CEO and managing director with several multinational companies across many jurisdictions, including Australia, North America, South America, Africa and Europe. He has a proven track record in deal making and was principally responsible for the merger of Papillon Resources and B2 Gold Corp in October 2014 (value US$570 million), as well as the key person responsible for the merger of Adamus Resources and Endeavour Mining for US$579 million. He is currently the non-executive chair of Calidus Resources, Omnia Metals Group, Alto Metals, Warriedar Resources and Nickel Search.
Marc Ducler – Managing Director
Marc Ducler has more than 20 years of experience in the mining industry. He has held senior operational management roles with GoldFields, BHP, Fortescue Metals, MRL and Roy Hill. He was also the managing director of Egan Street Resources (a gold exploration and development company) until it was acquired by Silver Lake Resources (ASX:SLR).
Peter Stern – Non-executive Director
Peter Stern has experience in corporate advisory, specializing in M&A and capital raising. He has spent six years with Macquarie Bank and three years with UBS and Deutsche Bank. He is a graduate of Monash University with a Bachelor of Science (geology major). Stern is a fellow of the Australian Institute of Company Directors and the chairman of Troy Resources.
David Varcoe – Non-executive Director
David Varcoe is a mining engineer with over three decades of experience. He has extensive operational and managerial experience across various commodities, including gold, iron ore, copper, diamonds, coal, uranium and rare earths. His expertise spans board positions, operations management, project management and consulting. Varcoe is a principal consultant with the leading Australian firm AMC Consulting.
Justin Osborne – Non-executive Director
Justin Osborne is a geologist with over 30 years of experience in exploration. He was previously the executive director at Gold Road Resources (ASX:GOR), where he played a crucial role in developing the world-class Gruyere gold deposit (6.6 Moz gold). Osborne also held senior positions on the exploration executive team at Gold Fields. He was instrumental in developing the Damang Superpit project in Ghana and achieved significant discovery success at the St Ives gold mine.
Brendon Morton – Chief Financial Officer & Company Secretary
Brendon Morton has over 20 years of experience, particularly in the global resources sector across Australia, Africa and Asia. He has held several executive financial and company secretarial roles with ASX-listed and unlisted companies in the resources industry.
Jed Whitford – General Manager Business Development and Projects
Jed Whitford is a mining engineer with over 20 years of industry experience. His expertise primarily encompasses gold and base metals operations, having worked with companies such as Western Mining, Gold Fields, Golder Associates, Xstrata and Glencore.
Julie Reid – Geology Manager
Julie Reid has 36 years of experience working across Australia, Vietnam and Indonesia, covering a variety of commodities in diverse geological terrains. She holds a Bachelor of Applied Science from Curtin University of Technology.
Crown Prince Maiden Ore Reserve & Feasibility Study Results
HIGHLIGHTS
- New Murchison Gold Limited (ASX:NMG) is pleased to announce the results of a Feasibility Study into the Crown Prince Gold Deposit (Crown Prince Feasibility Study) in WA which outlines pre-tax cash flow of $226m (undiscounted) over a period of 30 months at current spot gold prices (A$4,385/oz).
- Capital expenditure required to commence production of $5.4m is very low relative to peer gold projects given the Company’s Ore Purchase Agreement (OPA) with Westgold Resources Limited (WGX or Westgold).
- NMG is also expecting to be able to utilise its substantial tax loss position (30-Sep-24: $84.4m in accumulated losses, $76.4m usable)1 to offset tax liabilities on initial pre-tax profits from Crown Prince.
- 140koz contained ounces of gold are to be mined and trucked to WGX over 30-month open pit.
- Upside in potential underground mine below the pit, which will be studied in 2025.
- NMG’s production plan is based on Ore Reserves only. Contained ounce production profiles in the study comprise only that material delineated in Ore Reserves (estimated using a A$3,250 /oz gold price assumption) for the project.
- Commencement of mining is expected in June 2025 with first ore sales scheduled in August 2025. Mining and environmental approval documentation was submitted to relevant regulators and counterparties in late 2024.
- The Crown Prince Feasibility Study (FS) was completed in January 2025 and demonstrates sound financial returns based on:
- An updated Mineral Resource Estimate (MRE) of 2.205Mt @ 3.Gg/t for 27Gkoz2
- An Ore Reserve estimate for Crown Prince Project of 0.8G million tonnes @ 4.8g/t gold (Au) containing 140,000oz Au.
- Crown Prince ore sold at the mine gate under an Ore Purchase Agreement (OPA) for haulage to Westgold’s Bluebird Mill south of Meekatharra.
- Production from the Crown Prince Open Pit only, which is covered by the granted mining leases.
- Next steps to expand the resource base are to assess Crown Prince underground potential and other deposits including Lydia and New Murchison King. These were not considered in the FS.
- The FS Life of Mine (LOM) production schedule metrics are shown on Table 1. Financial results with sensitivity to gold price, are shown in Table 2. Summary of LOM Cash Flow is shown in Figure 1.
Table 1: Production Schedule Metrics – Crown Prince Open Pit
Table 2: Financial Results (AUD)
Click here for the full ASX Release
This article includes content from New Murchison Gold Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
December 2024 Quarterly Activities Report & Appendix 5B
Key Developments & Exploration Progress
- Major untested conductive and phase anomaly were both identified proximal to each other within Altair’s Olympic Domain Project which is highly prospective for IOCG style mineralisation.1
- The newly uncovered conductive and phase anomaly body1 located ~5km Northwest of BHP Oak Dam Deposit (1.34Bt @ 0.66% Cu & 0.33g/t Au)2
- Ovoid conductive anomalous body shares parallels to those of Khamsin and Carrapateena deposits, with a follow up with TEM survey that can precisely identify the depth of the body for drill targeting1
- Previous drilling appears to have narrowly missed the newly identified phase anomaly with impressive results on the mineralised halo surrounding the target anomaly1, 5, 6, 7:
- HWDD08: 115m @ 0.32% CuEq from 1040m (Drilled ~2km North of main phase anomaly)
- HWD1: 61m @ 0.33% CuEq from 901m
- HWDD05: 115m @ 0.62% CuEq from 1095m (Drilled ~700m North of conductive high)
- HWDD05W1: 70m @ 0.67% CuEq from 962m
- Altair executive team continued reviewing multiple complimentary business opportunities in the resources sector globally.
OLYMPIC DOMAIN PROJECT
The Olympic Domain Project consists of three prospects (Horse Well, Pernatty C, Lake Torrens) situated in one of the largest copper provinces in the world – the Gawler Craton, which hosts mega-IOCG discoveries such as Oak Dam West, Olympic Dam, Prominent Hill and Carrapateena.
Figure 1: Horse Well Total Magnetic Intensity (TMI) overlaid with TMI variable reduction to pole (VRTP) 2nd derivative - SARIG. Shown are two of Altair’s key high-priority magnetic targets1.
The Horse-Well Project represents a strategic opportunity for Altair, being the only project held by a junior exploration company in the vicinity (merely 2km away) of BHP’s Oak Dam West discovery with a recently defined inferred resource of 1.34Bt @ 0.66% Cu and 0.33g/t Au, including 220Mt @ 1.96% Cu and 0.68g/t Au2. The Horse-Well Project consists of EL’s 6122 and 6183 spanning a large area of 147km2 with initial drill results within geophysical anomalies having returned very positive levels of Cu-Au mineralisation associated with IOCG style alteration, with the possibility that these represent intersections peripheral to major targets.
During the quarter, Geophysical Audio Magnetotelluric (AMT) data acquired across Horse-Well in 2019 reprocessing was finalised as part of Altair’s strategy for the next step in targeted work plans. The 3D forward geophysics model has defined major conductive and phase anomalous bodies which has shown significant scale to host a potential large IOCG deposit which is analogous to the genesis of the Oak Dam Deposit.
The AMT data model includes 220 different sounding stations covering an area of 146km2, with conductivity and phase readings across a spectrum of 90 frequencies at each sounding station with additional repeat soundings for both Conductivity and Phase, leading to a model formed from analysing ~40,000 data points. For further detail see announcement dated 4th of December 20241
Click here for the full ASX Release
This article includes content from Altair Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Astral Resources Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects