Ora Banda Mining Ltd (ASX:OBM) has expanded its Western Australian gold assets over the last year, securing large increases in its resource estimates and a maiden ore reserve for the Sand King Underground.
The gold mining company achieved a 176% increase to the Sand King Underground resource estimate, bringing it to 3.4 million tonnes at 2.8 g/t gold for 306,000 ounces while also generating a maiden ore reserve of 537,000 tonnes at 3.2 g/t gold for 55,000 ounces.
OBM also increased the Riverina Underground resource by 54%, to 4 million tonnes at 2.6 g/t gold for 468,000 ounces.
In total, the Davyhurst Gold Project mineral resource estimate now sits at 23.3 million tonnes at 2.6 g/t for 1.95 million ounces of gold.
More potential for growth
"Our updated resource and reserve position is reflective of the wholesale changes Ora Banda has made as a business to target high-grade, with a plus 50% increase in Riverina Underground resource and a 176% increase in the Sand King Underground resource, in addition to declaring a maiden underground ore reserve at Sand King,” Ora Banda Mining managing director Luke Creagh said.
"Although it is still early days, we are extremely encouraged by the fact that we've been able to grow our ounce position so quickly and that we are now seeing the deposits show significant potential along strike and at depth.
"The company will continue to allocate significant investment into exploration and resource definition drilling to continue to expand these mineralised systems to extend mine life and increase its options around an accelerated production profile in the future."
Reserves increase
In addition to the sizeable mineral resource estimate at Davyhurst, the project also holds a strong ore reserve.
On top of the Sand King Underground’s maiden ore reserve, OBM also increased the Riverina Underground ore reserve by 19% to 651,000 tonnes at 4.2 g/t gold for 87,000 ounces after mining depletion.
With Sand King contributing significantly, the total underground ore reserve at Davyhurst increased 94% to 1.2 million tonnes at 3.7 g/t gold for 142,000 ounces, and the total ore reserve position increased 19% to 2.2 million tonnes at 2.7 g/t gold for 190,000 ounces.
The reserve grade (excluding stockpiles and low-grade mineralisation) also increased 17% and surface stockpile ounces increased 67% to 20,000 ounces of gold.
OBM is using a cut-off grade for the underground ore reserve based on a A$2,250 per ounce gold price to ensure focus remains on conversion of higher margin ounces.