Ora Banda Mining Ltd (ASX:OBM) is aiming to transform from a ~60,000 ounces per annum (kozpa) gold producer to more than 100kozpa within 2 years, underpinned by progressing high-grade underground opportunities and a strong focus on operational delivery.
Portal support works are underway and portal firing is planned for mid-May at the company’s Riverina Underground in Western Australia's Goldfields.
Byrnecut Australia has been selected as the preferred contractor for the mine development and mobilisation has already started.
Ora Banda is well funded to meet the estimated capital requirement of ~$30 million for Riverina Underground with the company raising about $44.2 million in additional funds recently.
The company’s 100,000 ounces production target by FY25 is underpinned by the recently upgraded maiden ore reserve of 73,000 ounces averaging 4.3 g/t gold at Riverina Underground.
Ora Banda intends to continue investment into drilling in and around the Riverina Underground deposit, confident of delivering future growth opportunities.
Key forecast milestones:
- Underground diamond drilling scheduled FY24 Q1
- First ore – January / February 2024
- First stopes – March / April 2024
- Steady state production achieved – August / September 2024
- Mining production targeted rate of ~600ktpa of ore
- Reserve grade of 4.3 g/t
- AISC estimated at less than $1,650/oz for the underground, resulting in below $1,750/oz for company
It is worth noting that Ora Banda’s phase 1 exploration program has drilled 24% more holes in the six months from Jul -22 to Dec -22 than the entire amount of diamond drilling at Riverina Underground from 1984 to 2021.
Ora Banda has extensive infrastructure on-site, including a 1.2 million tonnes per annum processing plant, two accommodation villages, gas generated + mains power, an expansive road network and airstrips.
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