Ora Banda Mining reports 60% upgrade in Davyhurst Gold project Ore Reserve; stock mounts 8.51%

  • May 26, 2020 AEST
  • Team Kalkine
Ora Banda Mining reports 60% upgrade in Davyhurst Gold project Ore Reserve; stock mounts 8.51%

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.

Figure 1 - Deposit Locations

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.

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK