Australia-based gold explorer Ora Banda Mining Limited (ASX: OBM) is currently and actively pursuing development of its 100%-owned Davyhurst Project located approximately 120 km north-west of Kalgoorlie within the highly prospective and well-known gold producing area in the Eastern Goldfields of Western Australia. The company’s strategic landholding comprises 6 project areas including Davyhurst, Mt Ida, Riverina, Mulline, Siberia, and Lady Ida covering 112 tenements spanning across 1,336 km2 along a 200 km strike on the greenstone belt.
Weston brothers build a gold mine in this area in 1893, which they called as Ora Banda, the Spanish word for 'sash of gold' or 'band of gold'. Over the years, gold mining operations have become geographically diverse and according to the World Gold Council, Asia in total accounts for approximately 23% of all newly-mined gold in the world. Australia is well-known as one of the world’s leading suppliers of gold with a prosperous resource sector that has long been a primary industry and major contributor to the Australian economy.
Ora Banda emerged into a new phase after relisting of its securities on 28 June 2019 with the completion of its $ 30-million recapitalisation process and focussed on unlocking value from its strategic landholding through high impact exploration, resource definition and detailed mine planning. Since recapitalisation, the company has raised about $ 50 million to fast track the project towards production.
The project has appropriate infrastructure in place for a rapid start such as-
- Admin buildings
- Large bore field
- Extensive road network
- Power line into the sites
- 160-man camp
Most importantly, it is the only company in the region with an existing Davyhurst Processing Hub (@ 1.2Mtpa), giving it a big edge over other emerging explorers, as very few have immediate access to their own processing facilities in the current gold mining dynamics in Western Australia. The company has a total resource base of 9.2Mt @ 2.8g/t for 840koz contained in its five key priority targets that are well-understood and located within different project areas. Ora Banda is looking at bringing these five key priority targets back into production at 1.2Mtpa processing rate with the view to producing around 100,000 oz of gold per annum from 2021 onwards. There are several open pit and underground prospects within these project areas.
The recommissioning costs for bringing back the processing plant online is substantially low at $ 8.5 million (EPCM estimate), as estimated by GR Engineering Services Ltd.
Given the expansiveness of its ground holding with known high-grade mineralisation of gold, nickel sulphide and base metals, Ora Banda is also undertaking a regional exploration programs to derive maximum value from its expansive land package and achieve Resource Upgrade & Extension.
The company is completing the feasibility study in parts with the recent reserve feasibility study announced on 30 October 2019, for the Siberia open pits of Sand King & Missouri that currently have 210 koz of reserve in them and the company is working to further build this up.
Ora Banda is also supported by its major shareholders including UK-based Hawkes Point with around 42% voting rights plus the management also has a good share in the company.
Gold prices are trending at all-time highs globally presenting a great economic landscape for gold miners like Ora Banda to capitalise on the opportunity.
Stock Performance: Ora Banda has a market cap of ~ $ 92.48 million with ~ 543.98 million shares outstanding. On 21 November 2019, the OBM stock price settled the day’s trade at $ 0.170. OBM has also delivered a positive return of 6.25% YTD.
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