Australia-based gold exploration and development company, Ora Banda Mining (ASX: OBM) announced on 02 December 2019, that the Mineral Resource for the Riverina Project has been updated. It is a key part of the Davyhurst Gold Project and located 48km from the Davyhurst processing plant that has a capacity of @1.2Mtpa.
The total Mineral Resource at the Riverina Project has increased to 3.8Mt @ 2.3 g/t for 278k ounces of contained gold including an open pit Mineral Resource of 3.1Mt @ 1.8 g/t Au for 183 ounces of contained gold. The company?s Mineral Resource statement now stands at 22.2Mt @ 2.6g/t for 1,850k ounces of contained gold. The full details of the new Resource Estimate are given below-
Source: Company?s announcement dated 2 Dec 2019
The upgraded Mineral Resource includes-
- 36% increase in total contained ounces from the previously reported Riverina Resource (previously 205,000 ounces - 2007).
- 245% increase in the Measured and Indicated category ounces from the previously reported Riverina Resource.
- 64% of the resource ounces report to the Measured and Indicated category.
The new results follow the successful completion of an initial 6,267-metre Resource Definition Drilling Program. Importantly, the focussed infill drilling program has primarily led to an increase in the higher confidence Measured and Indicated component by 106,000 ounces (246%) to 179,000 ounces. The Riverina Mineral Resource is reported within a AUD 2,400 optimised pit shell, while the previous Mineral Resource (2007) was reported unconstrained.
The team of Ora Banda Mining has now commenced Metallurgical and Geotechnical studies with the objective of building on the current knowledge base. A Feasibility Study targeted at defining the economically viable mining envelope for the proposed open pit has also begun while the company is simultaneously progressing with the Environmental Studies required for the approval process.
Ora Banda Managing Director, David Quinlivan pleasingly stated that the upgraded Mineral Resource is a crucial step in the development of this priority deposit. He further added that this very robust resource is an excellent platform to underpin the Ore Reserve and future development plans of the proposed open pit mining. Riverina will be a key for the start-up phase of the larger Davyhurst Gold Project.
Ora Banda is currently and actively pursuing development of its expansive tenure in the highly prospective and well-known gold producing area in Western Australia?s Eastern Goldfields. The company?s has around six projects namely Davyhurst, Mulline, Mt Ida, Riverina, Siberia, and Lady Ida comprising 112 tenements spanning across 1,336 km2?along a 200 km strike on the popular greenstone belt. Encouraging drilling results are fuelling Ora Banda?s endeavours to fast track the project into production shortly.
Stock Performance: Ora Band has a market capitalisation of around AUD 96.76 million with around 586.42 million shares outstanding. On 02 December 2019, the OBM stock settled the day?s trading session at AUD 0.165 with ~ 262,256 shares traded. OBM has delivered a positive return of 3.13% in the last six months.
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