- Ora Banda updates its resource and ore reserve statement for the Davyhurst gold project
- OBM increases reserve grade by 50% compared to the previous statement
- Underground drilling has commenced at Riverina to focus on extensions to the higher-grade resource
Ora Banda’s strategy to focus on higher-grade underground ore is just beginning with an increase in reserve grade by 50% at the Davyhurst gold project.
Ora Banda’s (ASX:OBM) 1,200km2 Davyhurst tenements, 100km northwest of Kalgoorlie, boast a current resource base of 1.8Moz at an average grade of 2.6 g/t gold.
The tenement package is centred on five key, highly prospective project hubs (Mulline, Riverina, Davyhurst, Callion, and Siberia) where historical production is estimated at 1.4Moz gold since 1897.
It’s been a transformational year for the gold company so far, with a new strategy and team in place focused on transitioning the $195m market cap stock from a ~50,000ozpa gold producer to more than 100,000ozpa within two years.
New resource and ore reserve statement
In-line with its strategy, OBM concluded the sale of its non-core Lady Ida tenements for $10m to Lamerton and Geoda, strengthening the company’s balance sheet ahead of a final investment decision on the Riverina underground project.
OBM managing director Luke Creagh said the sale of these tenements was a great outcome as they did not align with OBM’s strategy to target high-grade underground deposits, nor was it included in its production target of 100,000oz per annum supported by reserves.
The company remains focused on the quality and value of its current resource and reserve base at Davyhurst with new updated estimates for both as at 30 June.
The Davyhurst resource now sits at 1.8Moz at 2.7 g/t while the ore reserve comes in at 160,000oz at 2.6 g/t, including 145,000oz at 3g/t gold.
This was calculated using a very conservative A$2400/oz gold price. The precious metal is currently paying a near record $3155/oz.
Underground drilling has also commenced at Riverina to focus on extensions to the higher-grade mineral resource within the deposit to convert more ounces to reserve.
Tapping into $9.8m exploration investment in 2024
“Our strategy to focus on higher-grade underground ore is just beginning, however, we are already seeing the early effect of this change with an increase in reserve grade by 50% compared to the previous statement,” Creagh said.
“This strategy ensures the quality and value of our current resource and reserve base and directs our focus to higher-margin ounces – both from a production perspective and in the development of future opportunities.
“I am very much looking forward to seeing what our A$9.8m exploration investment will unlock in FY24, especially noting that we are now drilling underground at Riverina and have exciting advanced underground targets in Missouri and Sand King.”
This article was developed in collaboration with Ora Banda Mining, 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.
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