Astral Resources Gold Strike Could be Just the Beginning for Kamperman Discovery in WA

Gold hit a record overnight which is timely as Astral Resources delivers wide intercepts of gold near the surface from drilling near Kalgoorlie.

Astral Resources NL (ASX: AAR) continues to intersect broad gold intersections at the wholly-owned Feysville Gold Project, located in an infrastructure-rich region just 14 kilometres south of Kalgoorlie in Western Australia.

At the Kamperman prospect, the most consistent high-grade intersection to date delivered 35 metres at 3.81 g/t gold from 86 metres.

This was supported by 13 metres at 1.55g/t gold from 141 metres, 3 metres at 2.54g/t gold from 177 metres and 10 metres at 0.95g/t gold from 189 metres.

This could be just the beginning, with these results from just the first 4 holes of a 19-hole reverse circulation program, ensuring strong news flow to continue in coming months.

In February, the Kamperman discovery revealed 7 metres at 5.81g/t gold from 19 metres and 12 metres at 2.12g/t gold from 69 metres.

These results highlight the potential scale and grade of the prospect.

Feysville currently hosts a resource of 3 million tonnes at 1.3g/t gold for 116,000 ounces.

The potential exists for the project to become a source of satellite ore feed to a future operation based on the company’s flagship Mandilla Gold Project.

Mandilla currently hosts 37 million tonnes at 1.1g/t gold for 1.27 million ounces.

The Mandilla scoping study delivered a large-scale, long-life mine development with robust financials from conservative cost and revenue assumptions.

Key Scoping Study Metrics

  • 100,000 per annum of gold production at 1.30g/t gold grade average over the first 7.4-year period;
  • Total estimated pre-production capital of approximately $191 million;
  • All in costs of A$1,648/oz;
  • NPV of $442 million;
  • Free cash flow of $740 million;
  • Payback of around 9 months at a gold price of $2,750 an ounce.

Record High

Spot gold rose 0.8% to $2,130.79 per troy ounce overnight, after touching its record high of $2,141.59. Expectations are growing of U.S. monetary easing and continued geopolitical risk buoying buying from momentum-driven funds.

This is handy for gold project developers like Astral Resources as the Australian dollar gold price is currently sitting above $3,100 an ounce.

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