Image Source: OBM Announcement 29/04/2022
- Ora Banda has ceased mining at Riverina and has shifted its focus to the Missouri open pit.
- OBM is continuing mining fleet rationalisation to reduce the fleet by ~40% and deliver a significant decline in the project’s cost base.
- OBM has appointed Simon Hillyard as the new General Manager of Operations appointed for Davyhurst.
Ora Banda Mining Limited (ASX:OBM) has declared an update regarding its operations, including various recent key developments. In one of the latest key developments, OBM announced that the Stage One of the Operational Reset Plan (ORP) is already underway. Stage One of the Operational Reset Plan (ORP) is a part of a step change for OBM as it seeks to consolidate its operations, generate cost efficiencies and focus on cash generation in the upcoming 2 years.
Through the initial stage of the ORP, OBM is focused on two central pillars, including the following:
OBM plans to focus on resource development and sustainable mine production beyond the 2-year period through the next step, Step Two of the ORP.
In mid-April 2022, OBM declared that work should cease at the Riverina open-pit mine and the company would then focus on the Missouri open-pit mine for next six months. The Company ceased Riverina mining operations on 3 May 2022 and shifted its focus to Missouri openpit.
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Source: OBM Announcement 29/04/22
Progressing rehabilitation works are slated to be finalised in the week commencing 16 May 2022. Currently, OBM is progressing with mining fleet rationalisation with the aim of cutting the fleet by around 40%. This is expected to significantly reduce the project’s costs.
Furthermore, OBM plans to only retain the equipment that will be required to execute the Missouri mining plan.
Notably, the decision to shift focus on the Missouri open-pit mine has helped in reducing staffing and contractor labour requirements. OBM believes that this reduction shall also deliver significant cost efficiencies for the Company.
Source: OBM Announcement 10/05/2022
Moreover, OBM believes that the shift to single mine production has been positive for Missouri as its manning strength has enhanced from as low as 80% to more than 100% of the baseline for the first time in the life of the project, despite persisting an industry-wide shortage of skilled labour.
OBM’s Davyhurst process plant treated 92,784 tonnes @ 1.82g/t for 5,427 ounces (5,019 ounces recovered) in April 2022, indicating a throughput increase of 5% on the earlier month. This further highlights the high-priority status that this area of the business is being afforded.
OBM continues collaborative work across the processing plant focusing on enhancing operational as well as preventive maintenance practices, along with challenges related to enhanced operational discipline.
OBM states three objectives for which, workstreams have been instigated more specifically:
In another key development, OBM announced the appointment of Simon Hillyard, an experienced mining professional, as General Manager, Operations, for the Davyhurst project. Previously, Mr Hillyard had been engaged in mining projects across Australia and abroad, including recently at Saracen’s Thunderbox Mine and the Higginsville Gold Operations.
He was Group Open-Pit Manager for Northern Star/Saracen Minerals, prior to his appointment at OBM.
OBM’s stock was noted at AU$0.035 on 10 May 2022.
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