Astro Resources gears up to advance high-quality gold and mineral sands projects in 2021

Astro Resources NL (ASX:ARO) is confident it could be on the cusp of exciting developments at its Needles Epithermal Gold Project in Nevada, USA, and Governor Broome Mineral Sands Project in Western Australia. Executive director Vince Fayad said the company’s recent bulk sample test-work from Governor Broome showed encouraging results with minimal slimes impact. He said: “The Governor Broome indicated resources contain an average of 13% slimes, and usually this would mean production is slowed down and an increase in production costs. “But our test-work showed that even though we have a slightly higher than average grade of slimes, those slimes are easily removed so they don’t actually interfere with the processing – it will actually be very efficient and effective.” “Potentially very profitable” Notably, the 100%-owned project has 52 million tonnes of JORC indicated resources and 6.5 million tonnes of JORC inferred resources. Fayad said: “We’ve tested samples which have shown the slimes just drop to the bottom which means that we’ve been able to establish that, with an average grade of 4.6% heavy minerals, of which 5 to 6 per cent is zircon and rutile, the slimes should not add significantly to processing costs. The final outcome is to be determined once the laboratory work has been completed. “That means that substantial revenues are likely to translate into a good margin and ultimately value. “Factoring in capital expenditure and capex, this shows that the project is potentially a very profitable and a very valuable project.”  The scoping study will be a key determinant to assessing the economic viability of the project. Scoping study plans Final results for the metallurgical test-work are expected to be announced in February 2021 and an updated scoping study will be carried out incorporating the results. The company completed a scoping study in June 2018, which determined a nine-year mine life, but that depended upon the Southeast Deposit that was later found not viable. Since that time, the company has explored an additional area, the West Deposit, and upgraded the resources of the South and East Deposits, to obtain total indicated resources of 52 million tonnes. Fayad said: “The updated scoping study will firm up the value of the project - we’ll go through the tonnage and we’ll look at the test results with a view of coming up with the net present value of the project to establish the economics. “Then we will move from the scoping study to a bankable feasibility study.” The scoping study is expected to begin in the current quarter. The Governor Broome Mineral Sands Project: Map and indicated resources. Needles Gold Project The Needles Gold Project attractiveness is due to its proximity to the Round Mountain Deposit, which has produced over 15 million ounces. Fayad believes that an exploration target, corresponding in size to the Round Mountain mineralisation, lies inside the Needles property boundary and that recent geological mapping has identified the centre of the area being near the historical Tomahawk workings. The mapping has established that mineralisation within the property appears primarily associated northeast-trending structures, one of which cuts through the Tomahawk area where Astro considers the big potential for the project lies. “We found up to 5.5 g/t gold at surface on the western side of the tenements, near the Tomahawk area, where our recent geological mapping and interpretation has confirmed the presence of northeast structure which may control or host the Round Mountain deposit style we are seeking.” “Potentially large gold deposit” Fayad is confident that the volcanic rocks within the Needles Project are consistent with those that occur at Round Mountain. He said: “If our exploration work undertaken to date is correct, then what we potentially have a large target with strong similarities to Round Mountain.” “The upcoming IP and seismic work this month will confirm the key targets which will then be drilled to prove our theory and exploration strategy.” Exploration strategy In the near term, the company plans to complete a three-stage exploration strategy to test for the presence of buried, flat-lying gold mineralisation similar to that of the Round Mountain Deposit, including: Infill and extended IP/resistivity survey on and to the west of the 2018 survey, with 200-metre line spacings to assist in detailed inversion modelling of conductivity; and Four shallow source (to 500 metres) seismic lines to define the underlying bedding, structure, and permeability within the target area. Work is expected to commence in January 2021. Based on the results of the IP/resistivity and seismic surveys, RC drilling will test for open-pit-able mineralisation. Tomahawk Shaft and Round Mountain target footprint. Diamond project Astro is also the 100% owner of a diamond project located near the Argyle region in northern Western Australia. Fayad believes that the project is located in the “right address” and that past work undertaken by Astro and its former joint venture partner have produced small diamonds. The company has invested heavily in its Heavy Mineral Separation plant in preparation for a major bulk sampling exercise to be undertaken in the near future. Diamonds found at the company’s project in the Argyle region. Looking forward This exploration strategy for the Needles Project is partially funded by the capital raising of $2.75 million last August and finalised in October 2020. The company also recently secured a new major shareholder in HPG, part of the Holdmark Property Group, which has taken up approximately 19.6% stock in the company. Holdmark is substantial property group and has indicated its support for the company’s ongoing exploration program.  Astro is now debt-free and well-funded to pursue the exploration of the Needles Gold Project and the evaluation of the Governor Broome Mineral Sands Project.