Astral Resources NL Raises $7M To Advance Million Ounce Gold Projects Near Kalgoorlie

Astral Resources NL (ASX: AAR) has received strong support for its gold strategy raising $7 million in a placement at $0.05 per share from sophisticated, institutional, and professional investors.

Directors of the Company also subscribed for an additional 2.1 million shares.

The new funds and existing cash resources will advance the company’s wholly-owned Mandilla and Feysville Gold Projects, located south of Kalgoorlie in Western Australia.

The combined resources of the projects are 1.38 million gold ounces.

Resource upgrade potential

Astral has a clear plan with diamond and reverse circulation drilling, assays, and test work at both projects, leading to resource updates.

Funds will also be allocated to exploration and evaluation support, and the commencement of the Mandilla Pre-Feasibility Study.

Marc Ducler, managing director, commented:

“The continuing exploration success at the exciting Kamperman prospect at Feysville gives us increasing confidence that Kamperman will become a valuable contributor of high-grade satellite ore feed to the Mandilla Gold Project development.”

Results are currently pending from another 15 reverse circulation holes at Kamperman.

Mandilla has free-milling potential

Ducler said:

“Mandilla is firmly established as one of the best free-milling open pit resources in WA’s Goldfields Region.”

While Feysville is a genuine source of high-grade satellite ore feed, our confidence in our strategy of building Western Australia’s next quality gold mining operation has never been greater.

Scoping study

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

Key metrics from the study included:

  • 100,000 ounces of gold production per annum
  • NPV of $442 million
  • All In Sustaining Costs A$ 1,648/oz over LOM
  • Free cash flow of $740 million
  • Payback of 9 months
  • Mine life is 7.8 yrs mining, 10.4 yrs processing
  • Open pit Conventional processing +95% recovery

This is from a shallow, high-quality resource base with 1.27 million gold ounces at Mandilla and 116,000 gold ounces at Feysville.

Considering the resource growth potential across Astral’s projects and the continued good gold price, these metrics could be substantially enhanced during 2024.

Gold again hit a high overnight and is around A$3100 an ounce, with the study based on a price of A$2,750 an ounce.

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