- Waihi Prospect is a key part of the Ora Banda’s Davyhurst Gold Project with activities at the project returning significant results.
- After receiving high-grade results at Waihi Prospect in December 2019, OBM reported additional high-grade results in first half of 2020.
- In addition, Waihi’s Mineral Resource increased by 190% of contained gold.
A uniquely positioned gold exploration and development company, Ora Banda Mining (ASX:OBM) has been engaged in undertaking activities at its Waihi Deposit that consists of a historical Waihi, Homeward Bound and Golden Pole deposits.
Since the beginning of the year 2020, the Company has made significant progress at the Waihi Prospect, a key part of the Company’s Davyhurst Gold Project, located just 3.2 km from the Davyhurst processing plant.
Waihi Area Location Plan (Source: Company's Report)
Waihi South and Golden Pole were first mined in the early 1900s as high-grade underground mines to the maximum depth of 190 metres, where Golden Pole Mine generated around 81,000 tonnes @ 29.6g/t for 77,000 ounces.
- Approximately 740,000 tonnes @ 2.40g/t Au for 56,000 ounces was extracted via open-pit methods at the Waihi deposit with mining reaching a maximum depth of 90 metres
- Ora Banda has recovered all available historical mining records for the Golden Pole underground mine
Waihi Reports Further High-Grade Assay Results
To start with, Ora Banda reported additional results from its Waihi resource definition and metallurgical drilling programs in January 2020 which focussed on:
- Delineating and upgrading an optimal open-pit Mineral Resource
- Testing the potential for further open-pit and underground resource extensions at depth
A total of 65 RC holes (6,313 m) and 15 diamond drill holes (3,656 m) were completed in Phase 1 of the Waihi resource definition drilling program, and all assay results were returned, out of which the most significant one was hole WHDD026 that returned 2.0m @ 7.9g/t from 205.0 metres. Results returned include:
- 34.0m @ 3.79 g/t from 30m, including 22.0m @ 5.0 g/t
- 34.0m @ 3.44 g/t from 75m
- 21.0m @ 5.25 g/t from 64m, including 6.0m @ 9.0g/t & 10.0m @ 5.3g/t
- 7.0m @ 4.31 g/t from 17m
- 19.0m @ 1.47 g/t from 50m
- 2.0m @ 11.18 g/t from 79m
- 2.0m @ 10.65 g/t from 80m
WHDD026 targeted and successfully intersected the down-plunge continuation of the high-grade Homeward Bound shoot which remains open beyond this point, and the focus for further exploration work remains on the plunge continuation.
Resource Increased by 190% to 206,000 oz Au for Waihi
In February 2020, the Company updated its Mineral Resource for the Waihi Prospect, which increased by 190% from 0.9 Mt @ 2.4 g/t Au for 71,000 ounces of contained gold to 2.46 Mt @ 2.6 g/t for 206,000 ounces of contained gold and the Company’s total Mineral Resource has accordingly increased to 23.8 Mt @ 2.6 g/t Au for 1.99 million ounces of contained gold.
The Company updated the Waihi Mineral Resource subsequent to the successful completion of a 65 RC drill hole and 15 Diamond drill hole resource definition and extensional drilling program by Ora Banda, and as a result of this focussed infill drilling program, the higher confidence Indicated component has increased by 107,000 ounces (170%) to 169,000 ounces.
Source: Company's Report
The Company also declared that detailed mine design work has commenced with an aim to define the optimum economically viable mining envelope for an open pit at the prospect and additional workstreams including metallurgical tests, geotechnical studies, as well as environmental studies required for the approval process, had also commenced.
Way Forward for OBM
The Company looks forward to planning the development of viable mining operations at Waihi on the basis of the excellent platform provided by this highly encouraging resource increase. Moreover, this result gives OBM a believer of Waihi being a key component in the start-up phase of the larger Davyhurst Gold Project.
OBM stock closed at $0.285 with a market capitalisation of $170.32 million on 23 June 2020.
Please Note: All financials are in AUD, unless otherwise mentioned