Astral on track to lift Mandilla resources with high grade gold hits
More gold ounces could be on the cards at Astral’s flagship Mandilla project south of Kalgoorlie after drilling returned high-grade gold hits within broader mineralised zones at depth.
Besides intersecting high grade intervals such as 0.5m grading 133.25 grams per tonne (g/t) gold from 420.85m and 0.5m at 46.57g/t gold from 227.1m, hole MDRCD660 at the Theia deposit also returned over 250m gram metres (grade multiplied by intersection width) of gold mineralisation over several intervals.
Other holes at the prospect also returned significant mineralisation with hole MDRCD661 intersecting 2m at 16.38g/t gold from 86m in a previously reported reverse circulation pre-collar and 7m at 1.85g/t gold from 94m while MDRCD681 hit 4m at 3.33g/t gold from 246m.
At the Eos deposit, one of the three RC holes drilled to test for bedrock mineralisation associated with the high-grade Eos paleaochannel deposit intersected a 26m zone of low-grade (0.69g/t) gold mineralisation which is coincident with a previously identified demagnetised zone interpreted to be a shear zone.
The results clearly highlight that Astral Resources’ (ASX:AAR) strategy to drive continued resource growth in Western Australia’s Eastern Goldfields region through aggressive drilling is sound and will likely lead to further drilling being planned.
Managing director Marc Ducler said the latest results highlight two significant new developments at Mandilla.
“Firstly, hole MDRCD660 has demonstrated a significant extension of gold mineralisation at depth at the Theia deposit, with several intersections accumulating in over 250-gram metres of gold over the length of the hole,” he noted.
“With a significant portion of the higher-grade mineralisation situated beyond the current Mineral Resource we have confidence that further drilling will provide us with the continued resource growth required to drive the project forward.
“Secondly, testing for bedrock gold mineralisation associated with the high-grade Eos palaeochannel deposit has returned positive results, with the identification of a broad zone of gold mineralisation associated with a demagnetised zone believed to represent a possible shear zone.
“This confirms a new bedrock target zone requiring further drill testing.”
Ducler added that the decision to grow resources to reach the critical resources needed to support a standalone mine development is well supported by the latest results.
Mandilla currently has a resource of 30Mt grading 1.1g/t gold, or a contained resource of 1.03Moz of gold.
“With further results pending and follow-up drilling planned we are increasingly confident that we now have one of the best undeveloped gold projects in the Eastern Goldfields of Western Australia,” Ducler noted.
Gold mineralisation at the Theia and Iris deposits are comprised of structurally controlled quartz vein arrays and hydrothermal alteration close to the western margin of the Emu Rocks Granite and locally in contact with sediments of the Spargoville Group.
Significant northwest to west-northwest trending structures along the western flank of the project are interpreted from aeromagnetic data to cut through the granitic intrusion.
Astral believes that these structures are important in localising gold mineralisation at Theia, which now has a mineralised footprint extending over a strike length of more than 1.5km.
Additionally, a second sub-parallel structure hosts gold mineralisation at the Iris deposit, which with a strike length of about 700m, combines with Theia to form a mineralised zone extending over a strike length of more than 2.2km.
At Eos, located further to the south-east, a relatively shallow high-grade mineralised palaeochannel deposit has been identified.
Mandilla is covered by existing Mining Leases which are not subject to any third party royalties other than the standard WA Government gold royalty.
Reverse circulation and diamond drilling is continuing at Mandilla with a further 8,950m of drilling completed in addition to the 8,831m of drilling to be completed.
This article was developed in collaboration with Astral Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.