Proactive Investors - Ora Banda Mining Ltd (ASX:OBM) is working on its Riverina and Sand King underground mines which together form part of the Davyhurst Gold Project in Western Australia.
These are collectively the centrepiece of the company's 'Drive to 150' Project, under which Ora Banda is targeting annual production of 140,000 ounces to 160,000 ounces in the 2026 financial year.
Strong results; momentum building
The company is pleased with recent infill drilling results from Riverina Underground, which showcase the high grade and consistency of the Riverina ore lodes.
Results from 122 holes confirm strong gold above 10-gram metres on 102 occasions and include 45 intersections over 20-gram metres.
And momentum is building – a second underground diamond rig will be mobilised to the site in mid-September to accelerate the campaign, while two surface exploration rigs are scheduled to start early in the December quarter, targeting southern and depth extensions.
Mining at Riverina is also on track, with development and stoping performance in line with expectations.
The OBM team completing an underground survey markup.
Grade control infill drilling highlights from the Riverina main lodes include:
- 2.7 metres at 65.9 g/t gold including 2.1 metres at 85.6 g/t;
- 5.4 metres at 6.4 g/t;
- 4.4 metres at 22.1 g/t including 2.8 metres at 33.6 g/t;
- 1.5 metres at 23.2 g/t; and
- 1.6 metres at 46.7 g/t including 0.9 metres at 79.9 g/t.
Meanwhile, operations are kicking off at Sand King, with the portal established and mine development underway.
The decline is advancing well, with good ground conditions making the job easier. The company is also recruiting operational management and technical staff.
First development ore is expected in the final quarter of this year with first stoping ore expected in the March 2025 quarter. By the June quarter, the company expects to be producing a steady state of 60,000 ounces per annum.
Ora Banda managing director Luke Creagh said: “As mining and drilling progresses at Riverina, our confidence is growing that we are only at the very early stages in unlocking what is presenting as a large and high-grade system.
“The addition of a second underground diamond rig as well as two surface drill rigs in the coming months is an exciting catalyst for the next wave of drill results as we target material extensions to the current Riverina system.
“Commencing Sand King is also an exciting time for the company, demonstrating commitment to our strategy and placing us on the path to deliver 140,000 to 160,000 ounces in FY26.”
Over FY25, Ora Banda’s exploration efforts will expand from the main mining area, heading south along strike to modelled main lode(s) locations, and up and into British Lion deposit.
The company considers this 2.5-kilometre corridor a highly fertile search window, noting that this mineralised corridor extends out 7.5 kilometres south of the mine before going under cover.
Exploration programs will ultimately extend to the most southerly known extent.
The Ora Banda board approved the Sand King underground mine in July and forecasts the following metrics:
- investment capital of ~$39 million with maximum cash drawdown of ~$32 million, funded by operating cashflows from Riverina Underground and existing cash;
- portal commencement – September 2024 quarter;
- first development ore – December 2024 quarter;
- stoping commences – March 2025 quarter; and
- steady-state production of ~60,000 ounces per annum commencing in June 2025 quarter.
Sand King's underground mineral resource recently increased 176% to 3.4 million tonnes at 2.8 g/t for 306,000 ounces, up from 110,000 ounces. The maiden Sand King underground ore reserve is 537,000 tonnes at 3.2 g/t for 55,000 ounces.
The Sand King underground mine plan also includes drill drives and infrastructure to benefit from any mineral resource conversion or extension.
The current mineral resource is open in all directions and has only been drilled to a depth of around 300 metres below surface.
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