Astral Resources says Mandilla shaping up as standalone long-life operation
September 21, 2023 at 01:01 pm EDT
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Astral Resources NL (ASX:AAR) MD Marc Ducler tells Proactive the company has projected free cashflows of about $740 million over a life-of-mine (LoM) of 11 years in a scoping study for its flagship Mandilla Gold Project in Western Australia’s Widgiemooltha greenstone belt. The study, based on extraction of mineral resources in two granted mining leases, has determined that a 2.5 million tonnes per annum carbon in leach (CIL) processing plant with associated infrastructure provides the lowest capital and operating cost across the mine’s life. It projects an average gold production target of 100,000 ounces per annum at an average feed grade of 1.30 g/t gold over the first 7.4 years, gradually reducing to 41,000 ounces at 0.50 g/t gold from treating lower grade stockpiles over the remaining 3.4 years.
“We are pleased that the Mandilla scoping study has confirmed the potential for Mandilla to become a highly profitable standalone gold operation,” Ducler said.
“Mandilla is situated in the premier Goldfields region of Western Australia and is firmly established as one of the best free-milling, open pit resources in this district in both scale and quality of project.
“The study outlines compelling financial metrics for a Mandilla development, with projected free cash-flows of approximately $740 million over a life-of-mine of 11 years and a payback period of less than a year for total pre-production capital expenditure of approximately $191 million.”
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Proactive Investors
Jonathan Jackson
+61 413 713 744
jonathan@proactiveinvestors.com
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Astral Resources NL is an Australia-based gold exploration and base metals company. The Company's projects include Mandilla Gold Project, Feysville Project and Carnilya Hill Project. Its flagship Mandilla Gold Project (Mandilla) is located approximately 70 kilometers (km) south of Kalgoorlie in Western Australia. Mandilla hosts a Mineral Resource Estimate (MRE) of 37 metric tons (Mt) at 1.1 grams per ton of gold (g/t Au) for 1.27 million ounces (Moz) of contained gold. Mandilla's deposits include Theia, Iris, Eos and Hestia. It is also advancing exploration activities at its Feysville Gold Project (Feysville), which is located around 14 km south of the KCGM Super Pit in Kalgoorlie. Feysville hosts a MRE of 3 Mt at 1.3 g/t Au for 116 thousand ounces (koz) of contained gold. The Company has 100% of the gold rights in Carnilya Hill Gold Project, which includes various tenements - M26/047-049, M26/453 representing an aggregate area of approximately 2.65 square kilometers.