Astral Resources' (ASX:AAR) infill drilling results at its Mandilla gold project in Western Australia show "significant" upside to the current pay-back period of less than a year with prices of AU$4,250 per ounce of gold, according to a Monday report by Euroz Hartleys.

Results yielded on average 56 gram meters, while an economic open-pit deposit should average 10 gram metres to 15 gram meters, Euroz said.

In September, the company identified quartz veining and sulphides at the project, resembling a multi-million-ounce mine, Euroz added.

The company also intercepted very high-grade gold at the project, which a rig has started drilling this week, Euroz noted.

Euroz maintained the company's buy rating but increased its price target to AU$0.54 per share from AU$0.50 per share.

Shares of the company rose 9% in recent Monday trade.