Image Source: OBM presentation 26/11/2021
- Ora Banda has reported a revenue of AU$79.60 million from the sale of 32,328 ounces of gold in the half year ended 31 December 2021.
- OBM’s total ore mined stood at 742,149 tonnes from three mining centres during the period.
- A Tailings Storage Facility – Cell B was constructed and commissioned, which has a capacity of 1,014,887 m3.
- Gold mineralisation was intersected from the first pass exploration AC drilling programme over multiple deposits.
Uniquely positioned gold producer Ora Banda Mining Ltd (ASX:OBM) holds one of the largest ground positions in the Eastern Goldfields region of Australia. The Company owns 100% of the Davyhurst Gold Project and is focused on unlocking significant value from its highly prospective landholding.
The Company has recently announced its interim financial report for the half year ended 31 December 2021. During that time, the Company had been engaged in mine operations and the sale of gold, mine development and exploration activities in Western Australia.
OBM has reported a net profit of AU$6.61 million during the period, primarily driven by the sale of Mt Ida assets in September 2021. OBM also incurred AU$24.54 million of mine development and capital expenditure, which is close to AU$25.46 million spent during the half year ended 31 December 2020.
Source: OBM Presentation 22/02/22
Moreover, the Company sold around 32,328 ounces of gold and 3,632 ounces of silver at an average price of AU$2,458.40 and AU$32.52 during the six months period, resulting in a total revenue of AU$79.60 million.
Net cash outflows during the period amounted to AU$3.70 million in operating and investing activities.
OBM in early July 2021 raised AU$0.75 million under a Share Purchase Plan offer through the issue of 4,382,393 shares at a price of 17 cents per fully paid ordinary share.
Besides this, the Company raised AU$0.10 million through the issue of 588,236 fully paid ordinary shares at an issue price of 17 cents per ordinary share, concluding the AU$21 million placement declared in June 2021.
Besides this capital raising, OBM sold its Mt Ida Gold Pty Ltd, which helped in raising AU$11.04 million before costs.
The closing cash balance of OBM at the end of the period stood at AU$15.02 million.
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The Company also advanced significant work during the period across various deposits, including activities related to mining, ore processing, exploration, infrastructural development, etc.
Key highlights from mining activities include the following:
Image Source: Copyright © 2022 Kalkine Media® | Data Source: OBM Announcement 09/03/2022
With waste stripping anticipated to decline, OBM expects ore tonnages and grades to progressively grow in the second half of the financial year.
On the processing front, the total ore milled during the half-year period stood at 500,883 tonnes at a blended grade of 2.14 g/t Au for 34,521 contained ounces. OBM reported a recovery rate of 91.4%, with 31,471 ounces being poured during the period.
Infrastructural development and assays from Riverina
The half year saw OBM construct and commission Tailings Storage Facility (TSF) – Cell B with a capacity of 1,014,887 m3 at a cost of AU$4.51 million.
Source: OBM Announcement 09/03/2022
OBM also received results of an 18-hole, 3,460-metre diamond drill program at Riverina Underground, which returned the following assays:
OBM is currently progressing an updated Mineral Resource Estimate (MRE), which will include these results.
Besides this, OBM also received results of a first pass exploration air-core (AC) drilling programme of priority grassroots targets spread across the Company’s tenement package. In this regard, OBM has received assays for drilling at Sunraysia North, Gem Star North, Santalum and Queen of Hearts, while results for other target areas are yet to be received.
Source: OBM Announcement 09/03/2022
Out of these four targets, results from three targets have intersected gold mineralisation, with the Sunraysia North and Santalum prospects delivering outstanding results.
Going forward, OBM is planning AC and RC drilling to follow up on promising results.
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