Astral Resources says Mandilla shaping up as standalone long-life operation

–News Direct–

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 Australias 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 mines 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

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