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Highlights
- A$2.8B projected free cashflow over 19 years
- 1.41Moz gold production target with high recovery
- Expansion potential from recent acquisitions
Astral Resources (ASX:AAR) has unveiled a robust Pre-Feasibility Study (PFS) for its 100%-owned Mandilla Gold Project, located near Kalgoorlie in Western Australia. The study underscores the project's potential to generate strong long-term value, highlighting a projected A$2.8 billion in pre-tax free cashflow and a net present value (NPV8) of approximately A$1.4 billion at a base gold price of A$4,250 per ounce.
With a 19-year mine life and a production target of 1.41 million ounces of gold, Mandilla is positioned as a significant long-duration operation. The first 12 years are planned as open-pit mining, expected to yield 95,000 ounces annually at an average grade of 1.13 grams per tonne. The project then transitions into stockpile processing for another 6.5 years, averaging 42,000 ounces per year at 0.50 g/t. These production figures will be supported by a 2.75 million tonnes per annum (Mtpa) carbon-in-pulp (CIP) processing plant, with an anticipated gold recovery of 95.5%.
The maiden Probable Ore Reserve Estimate totals 36.6 million tonnes at 0.9 g/t for 1.08 million ounces of gold, sourced primarily from the Mandilla and nearby Feysville deposits. The broader Mineral Resource across Mandilla comprises 42 Mt at 1.1 g/t for 1.43 million ounces.
Notably, the PFS does not yet incorporate resources from the recently acquired Spargoville Project—added through Astral’s May 2025 acquisition of Maximus Resources Ltd—which contributes 139,000 ounces to the company's resource base across several deposits. This area is reserved for operational support and potential future expansion.
The development strategy optimizes early cash generation and high margin throughput, with 80% of the scheduled production derived from Indicated Resources. This structure offers greater confidence in delivery and aligns with Astral’s ambition to emerge as a significant Kalgoorlie gold producer.
Looking ahead, Astral is targeting completion of a Definitive Feasibility Study (DFS) by June 2026. The company also plans to advance resource conversion and exploration across its portfolio, which includes Mandilla, Feysville, and Spargoville.
For investors tracking potential growth candidates among ASX200 stocks, Astral’s development momentum and resource scale could position it as a future contender within this benchmark index, pending continued progress.
As exploration, reserve expansion, and DFS work progress, Astral Resources (AAR) is building a solid case for long-term value from one of Western Australia’s most prospective gold corridors.
