Ora Banda Mining Ltd (ASX:OBM) has passed a major milestone with first ore intersected at the Sand King Underground Mine which forms part of the Davyhurst Gold Project in Western Australia and the company’s ‘DRIVE TO 150 Project’.
Multiple ore lodes have been intersected in the first crosscut on the 315 Level just four months after establishing the portal and in line with internal planning.
Sand King remains on track to deliver first stoping ore in the March quarter of 2025 while steady state production of approximately 60,000 ounces is expected to begin in the June quarter.
Exciting milestone
Ora Banda’s managing director Luke Creagh said: “Reaching first ore at the Sand King Underground mine is exciting, especially considering that this milestone has been achieved less than four months after establishing the portal, and 14 months after the first drill hole targeting underground was completed.”
Sand King MOP with first high-grade ore on surface.
Since the establishment of the Sand King portal in late August this year, mine development has advanced on schedule and in good ground conditions with 427 decline metres and a total of 835 development metres achieved to date.
This progress is also in line with the Final Investment Decision (FID). Initial capital works projects have been completed as per the FID schedule and within budget, leaving only the primary fan installation to be completed in January 2025.
Grade control drilling
Underground diamond drilling for grade control is also underway at the mine with the rig completing 5,477 metres to date of the planned 45,400-metre program.
Significant results to date include:
- 6.0 metres at 9.5 g/t gold including 3.5 metres at 13.7 g/t;
- 11.3 metres at 4.1 g/t including 0.5 metres at 10.7 g/t;
- 3.5 metres at 13.2 g/t including 1.1 metres at 37.8 g/t;
- 12.2 metres at 3.2 g/t including 0.3 metres at 12.8 g/t;
- 3.6 metres at 9.8 g/t including 3.2 metres at 10.8 g/t;
- 2.7 metres at 13.2 g/t including 2.3 metres at 14.0 g/t;
- 2.4 metres at 14.0 g/t including 1.7 metres at 17.9 g/t; and
- 3.4 metres at 8.6 g/t including 0.5 metres at 16.9 g/t.
This initial program of 5,477 metres has confirmed multiple discrete high-grade lodes and additional bulk tonnage opportunities at Sand King. It has also confirmed:
- Large ‘Big Dog’ Lode results are in line with the resource model expectations;
- Infill drilling identified the high-grade nature of the narrow 090 striking tension veins;
- Confirmed presence of stacked/intersecting lodes that present a bulk mining opportunity;
- Potential for increased tonnes and grade in the modelled area with closer space drilling identifying higher-grade 090 tension veins; and
- FID Block Model integrity well supported by infill drilling.
The diamond rig is ramping up quickly and is now delivering above the anticipated productivity rate with ore intersected across two lodes through the cross-cut on the first level.
Sand King Portal and newly established ventilation adit.
Surface drilling
The company also recently conducted a small surface exploration drilling program at Sand King North.
This six-hole program targeted high-grade east-west ore structures and successfully infilled and extended the known lodes along strike. Results included:
- 8.0 metres at 5.4 g/t including 2.7 metres at 13.6 g/t;
- 1 metre at 31.3 g/t including 0.5 metres at 61.0 g/t;
- 13.6 metres at 2.3 g/t including 0.4 metres at 13.4 g/t;
- 2.4 metres at 11.5 g/t including 0.4 metres at 48.0 g/t; and
- 2.2 metres at 10.9 g/t including 1.9 metres at 11.9 g/t.
“The grade control and surface drilling has confirmed, enhanced and extended known mineralisation and we consider this to be at the early stages of unlocking the full potential of the Sand King mineralised system,” Creagh said.
Expandable 2 MW Power station and showing underground cable feed.
Remains on track
Sand King Underground remains on track to deliver key project metrics including:
- Investment capital of ~$39 million with maximum cash draw down of ~$32 million, funded by operating cashflows from Riverina Underground and existing cash – ongoing;
- Portal commencement – September 2024 quarter – achieved;
- First development ore – December 2024 quarter – achieved;
- Stoping commences – March 2025 quarter – on track; and
- Steady-state production of ~60,000 ounces per annum commencing in June 2025 quarter – on track.
“As the ounce production from Sand King increases month-on-month, we are set up for a strong second half of the financial year,” Creagh added.
"The combination of Riverina and Sand King high-grade ore delivers a step change to our production profile and cashflows, with a production outlook of 140,000 ounces to 160,000 ounce in FY26.”
In July 2024 the Sand King Underground mineral resource estimate increased by 176% to 3.4 million tonnes at 2.8 g/t for 304,000 ounces, up from 110,000 ounces. The maiden Sand King Underground ore reserve estimate is 537,000 tonnes at 3.2 g/t for 55,000 ounces.
The Sand King Underground mine plan incorporates design elements such as drill drives and infrastructure to benefit from any mineral resource conversion or extension. The current resource is open in all directions and has only been drilled to a depth of ~300 metres below surface.