Ora Banda Mining celebrates major milestone in Davyhurst gold revival

Ora Banda intersects first development ore at the Riverina underground
Crushing circuit upgrade complete, nameplate throughput now being consistently achieved at revamped Davyhurst plant near Kalgoorlie
All activities focused on “DRIVE to 100” strategy to deliver +100,000oz gold in FY25

Special Report: First development ore from the Riverina underground main lode has arrived four weeks ahead of schedule as Ora Banda Mining reports further processing improvements at the Davyhurst operation.

The milestones keep coming for reborn gold producer Ora Banda Mining (ASX: OBM) but perhaps none more significant than intersecting the Main Lode East orebody from the 2295 access four weeks ahead of the FID schedule.

First stoping at Riverina is now expected in the March quarter with steady-state production of 600,000tpa – at a reserve grade of 4.3g/t gold for ~80,000ozpa – expected to be realised in FY25.

OBM said the ore location and width was in line with the block model for Main Lode East. Lode grades of 10g/t and face grades of 4g/t are anticipated.

Reaching first development ore at the Riverina underground is arguably the biggest milestone to date in the company’s “DRIVE to 100” strategy which is steadfastly focused on delivering +100,000oz production in FY25.

“Achieving these big milestones is a testament to the outstanding efforts of the team and further strengthens our business as we continue on the pathway to achieving over 100,000oz in FY25 and lowering unit costs,” OBM managing director Luke Creagh said.

“Intersecting first ore from Main Lode at Riverina ahead of schedule is an exciting moment and, as we ramp up production over the next six months, the high-grade ore from Riverina is a key driver of increasing our ounce profile and free cash flow.”

Crushing circuit upgrade complete

On the processing side, OBM reports the crushing circuit has been operating at nameplate capacity of 1.2Mtpa since commissioning, with throughput rates consistently above 230tph on 100% fresh rock.

It follows a 4.5 day shutdown earlier this month to replace the tertiary crusher with the new Terex 380 model.

Other works aimed at improving the circuit were also completed, including repairing the ROM bin wall liner, replacing the conveyor belt and installation of the hydraulic packs seas container.

“The improvements in the processing plant, including the crusher upgrade, cannot be understated as, for the first time since commissioning, we are achieving nameplate throughput of 1.2Mtpa at 100% fresh rock feed,” Creagh said.

A number of key infrastructure projects were also completed this quarter, including the primary pump station and main 4.5m diameter ventilation shaft.

Surface infrastructure such as the wash-bay, workshop and offices have also been installed.

Both the primary vent fan and primary power station remain on track for completion next month.

Missouri coming to an end as Sand King emerges

In line with previous forecasts, the Missouri open pit mining fleet reduced by ~35% last month as the strip ratio decreased by 38% to 4.9:1 for the remainder of the mine.

This is considered a key driver in lowering OBM’s cost profile in FY24.

Exploration has resumed at the Sand King underground to follow up on the 12m @ 9.8g/t gold intersection reported earlier this month. Two diamond drill rigs are currently turning as part of the 33-hole program.

Sand King is earmarked as the potential second underground mine at the revitalised Davyhurst operation, 100km north-west of Kalgoorlie.

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.