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Summary
- Using AUD 2,100 per oz as the base lead to an increase of 60% in Probable Ore Reserve reaching 330,000 gold ounces at Davyhurst Gold Project.
- Key contributors to upgrade being 4 ore deposits- Riverina, Missouri and Sand King open pits, and Golden Eagle.
- Mining studies for priority targets Waihi and Callion open pit underway.
- DFS due for completion in June 2020 will include Reserve Updates from Davyhurst.
Gold exploration company and aspiring miner, Ora Banda Mining Limited (ASX: OBM), focussed on unlocking value from its “District Scale” Davyhurst Gold Project on the greenstone belt in Western Australia, has announced a combined JORC (2012) Probable Ore Reserve of 4.4 Mt @ 2.4 g/t Au for 330,000 gold ounces, representing an increase of 60%, for four key ore deposits being Riverina, Missouri and Sand King open pits, and Golden Eagle underground (referring to Table 1) as given below.
- Maiden Ore Reserve for Riverina open pit of 81,000 oz Au.
- Maiden Ore Reserve for Golden Eagle underground of 16,000 oz Au.
- Missouri Ore Reserve up 8% to 130,000 oz Au from 120,000 (October 2019).
- Sand King Ore Reserve up 18% to 110,000 oz Au from 93,000 (October 2019).
This Ore Reserve has been calculated at a gold price of AU$ 2,100 / oz Au.
The updated increase in gold reserves by 60% compared to the 2019 ore reserve estimate of 2,800,000 t @ 2.3 g/t Au for 210,000 ounces (as announced on 30 October 2019), has been achieved due to the inclusion of maiden Ore Reserves for the Riverina open pit and Golden Eagle underground and a 12% increase in the open pit Ore Reserve for Missouri and Sand King open pits. As a result, the conversion of Measured and Indicated Mineral Resource to Ore Reserves across the four deposits is 55%, up from 43 % in the 2019 estimate.
Ora Banda is also undertaking mining studies for Ora Banda’s Waihi and Callion open pit as well as an underground extension to Riverina (below the proposed open pit), which are all expected to be completed shortly. In addition, the reserve updates for these prospects are planned to be included in the Ore Reserve Statement underpinning the Company’s Definitive Feasibility Study (DFS) scheduled for completion in June 2020.
“The Company is pleased to update the market on the Ore Reserves for the Davyhurst Gold Project as we progress toward the completion of the DFS. The development of reserves for Waihi and Callion open pit and Riverina underground is continuing and we look forward to delivering these and the full results of a robust DFS in the near future, “ said David Quinlivan, Ora Banda Managing Director.
The Davyhurst Gold Project is located approximately 120 km northwest of Kalgoorlie and comprises a 1.2 Mtpa gold processing plant, fully permitted mining licenses, 160-person fully-equipped accommodation facility, and has an endowment of fully complementary infrastructure including RAV-10 rated haul roads, tailings dam and water extraction rights from two established bore fields.
Also, Read: Ora Banda records encouraging results from ongoing RC and DD programs; Stock spikes 12.5%
Stock Performance: The OBM stock settled the day’s trade on 26 May 2020 at AU$ 0.255, climbing up 8.511% by AU$ 0.020. OBM has delivered positive returns of 27.03% Year-to-date, 38.24% in the last six months and 20.51% in the last three months.
