Ora Banda’s Riverina underground mine looks like it has plenty of room for growth. Pic: Getty Images
Ora Banda mining on track as signs point to large, high-grade gold system at Riverina
Mining
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- Ora Banda’s grade control infill drilling has confirmed the consistency and high-grade nature of ore at the Riverina underground mine
- Mining is also on track with development and stoping performance in line with expectations
- The company has also started mining operations at Sand King, its second underground mine within its Davyhurst project
Special Report: Ora Banda’s dash down the development road at its Davyhurst project is continuing with infill drilling at the Riverina underground mine confirming the consistency and high-grade nature of its ore.
The latest batch of assay results from 122 holes returned significant gold intercepts above 10 gram metres (grams per tonne X intersection width) on 102 occasions and 45 intersections with over 20 gram metres.
Notable examples from this grade control infill drilling include:
- 2.7m grading 65.9g/t gold
- 4.4m at 22.1g/t gold; and
- 1.6m at 46.7g/t gold.
Ora Banda Mining (ASX:OBM) adds that a second underground rig is scheduled to begin operations in mid September to accelerate resource extension and exploration drilling while mining at Riverina remains on track with development and stoping performance in line with expectations.
Mining operations have also started at Sand King, which was recently approved as the company’s second underground mine at Davyhurst, with the portal established and mine development now underway.
The decline is advancing well in good ground conditions while recruitment of operational management and technical staff is on track.
“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,” managing director Luke Creagh said.
“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 160,000oz in FY26.”
Davyhurst mining
OBM is very much on track to achieve its goal of producing 100,000oz of gold per annum at Davyhurst by FY2025 with all-in sustaining costs of $1,975/oz – $2,125/oz.
This is likely to make for some truly tasty margins given current gold prices hovering around the $3700/oz mark.
The company notes that level plans show the Riverina main lodes are continuous and high-grade, with a high conversion of stoping tonnes along the ore drives, which is in line with expectations.
It also highlights the low capital intensity of the decline development noting the amount of ore-driving, stoping and ounces that are available to be extracted per level.
At Sand King, first development ore is expected in the December 2024 quarter and first stoping ore in the March 2025 quarter with steady state production of 60,000ozpa gold starting in the June 2025 quarter.
Current and upcoming gold exploration
The company has started surface reverse circulation drilling at Riverina to install numerous pre-collar holes ahead of the scheduled arrival of surface diamond drilling rigs in the December quarter.
This seeks to examine exploration search windows to the south targeting new gold lodes and extensions to known lodes, along with depth extensions and infilling on earlier exploration success such as 4m at 9.8g/t gold about 450m from the designed mine.
OBM plans to test near mine targets such as Riverina depth extensions, south and north of the current mine design along with footwall lode positions out to the west.
In addition, the hanging-wall “Murchison Lodes” (to the east of Main Lode) will be the subject of further drill testing and infill drilling.
Looking further ahead over FY2025, it plans to expand exploration from the main mining area southwards along strike to modelled main lode(s) locations as well as up and into the British Lion deposit.
This 2.5km corridor is considered to be a highly fertile search window that extends out 7.5km south of the mine before going under cover.
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.
