Astral Resources (ASX: AAR) Completes Drilling Program: Is This Gold Developer a Buy Before Production?

Astral Resources (ASX: AAR) has more than doubled over the past year, and the latest news from its Mandilla Gold Project shows why investors remain interested. The company just finished a major 99-hole drilling program designed to test the quality of its starter pit, and the results are coming in above what the geological model predicted.
This might sound like a technical detail, but it matters enormously. When a gold developer’s drilling confirms or beats expectations, it reduces the chance of nasty surprises once mining begins. For Astral, these results suggest the project could generate stronger returns than the feasibility study assumed.

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Mandilla Drilling Exceeds Expectations as Astral De-Risks Path to Production

The Theia deposit is the main driver of Astral’s Mandilla project, making up about 75% of planned gold production. That’s why drilling results here matter so much. Recent drilling has shown grades much better than expected, averaging 50 grams of gold per metre per hole compared to the resource model of just 1.1 g/t. Some standout results include 19 metres at 3.53 g/t and 18 metres at 6.67 g/t. These aren’t small improvements; they are well above expectations and point to stronger potential for the project.
The mining setup adds to the appeal. The starter pit has a strip ratio below 4:1, meaning Astral won’t need to move huge amounts of waste rock to access the gold. Lower strip ratios mean cheaper mining and quicker payback, which is exactly what investors want to see.
Managing Director Marc Ducler put it simply: “This starter pit will be a real moneymaker for us.”

New Theia West Discovery Adds Exploration Upside

Astral may have found something new and unexpected at Mandilla. Drilling west of the Theia deposit has hit gold in an area that geologists once thought had little chance, since it was mostly sedimentary rock. Early results are strong, with 1 metre at 24.8 g/t and 1 metre at 10.4 g/t gold, grades high enough to deserve more drilling. The company thinks this new structure could play an important role in how gold is spread across the whole Mandilla system. If further drilling proves the zone is bigger, it could add more gold to the resource and extend the mine’s life, upside that investors haven’t yet factored in. Meanwhile, the Definitive Feasibility Study is still on track for completion in June 2026.

The Investor’s Takeaway for Astral

Astral looks undervalued when you compare its market cap to the scale of the Mandilla project. The Pre‑Feasibility Study suggested a strong valuation at lower gold prices, and with gold now trading much higher, the project’s potential value rises significantly. Yet Astral’s market cap remains only a fraction of that, highlighting a gap that investors can’t ignore.

Of course, risks remain:

• Pre-production stage: No revenue until the mine is built, though the 2027 commissioning target is relatively near-term for a developer
• Funding required: Astral holds about $18.6 million in cash, but construction will need significant capital. Debt financing discussions will be a key milestone to watch
• Execution risk: The DFS and Final Investment Decision are still ahead, and cost blowouts remain possible in this environment

For investors willing to take on development risk, Astral offers a compelling growth play. Drilling continues to validate the resource, high gold prices provide a strong tailwind, and Theia West adds exploration upside not yet reflected in the share price. The key milestone will be the DFS in June 2026, which could spark a re‑rating well before the first gold is poured.