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Ora Banda (ASX:OBM) enhances gold reserves despite rising costs and cut-off grades

Summary

  • Ora Banda Mining has updated Mineral Resources and Ore Reserves estimates to 24.3 Mt @ 2.8 g/t for 2.17 Moz of gold. 
  • JORC (2012) Proved and Probable Ore Reserve for six key deposits stood at 6.1 Mt @ 2.4 g/t Au for 460,000 gold ounces on 30 June 2021.
  • OBM continues to work on further expansion of resources and reserves throughout the tenement holding.

Australian gold producer Ora Banda Mining Limited (ASX:OBM) has been working at various deposits across the Davyhurst project. These exploration works have delivered encouraging results for the Company and have provided direction for future work. 

More importantly, the Company’s aggressive work programs and exploration have helped update Mineral Resources and Ore Reserve estimates. 

JUNE QUARTER UPDATE: Ora Banda (ASX:OBM) reports rocking June quarter results

OBM updates Mineral Resources and Ore Reserves

Lately, OBM has updated Mineral Resources, and Ore Reserves estimates as at the end of June quarter, with a Total Mineral Resource Estimate of 24.3 MT @ 2.8 g/t for 2.17 Moz of gold on 30 June 2020.  

(Source: OBM Announcement 29/07/2021)

RELATED ARTICLE: Ora Banda (ASX:OBM) closes capital raising program to expedite activities at Davyhurst Gold Project

OBM also noted the JORC (2012) Proved and Probable Ore Reserve for six key deposits constituting the Davyhurst Gold Project of 6.1 Mt @ 2.4 g/t Au for 460,000 gold ounces as of 30 June 2021.

(Source: OBM Announcement 29/07/2021)

OBM’s Davyhurst Gold Project comprises a 1.2 Mtpa gold processing plant, fully permitted mining licenses, fully equipped accommodation facilities at Davyhurst and Riverina, and a full complement of supporting infrastructure.

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Drivers for the mineral resource update

The current update to the mineral resource reflects that the gold reserves have been maintained and enhanced to some extent in comparison to the 2020 Ore Reserve estimate of 6,100,000 t @ 2.4 g/t Au for 460,000 ounces.

Ore Reserves by deposit (Source: OBM Announcement 29/07/2021)

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The difference is largely driven as a result of the extension of Ore Reserves for the Riverina open pit and Golden Eagle underground, improvements to the Missouri design and inclusion of surface stockpiles.  

(Source: OBM Announcement 29/07/2021)

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This has been achieved despite FY21 Ore Reserve mining depletions of around 28,000 ounces and increased projected costs that led to improved cut-off grades. These cost increases majorly indicate the changes in the ongoing market conditions that have influenced the mining industry of Western Australia.

Location of deposits (Source: OBM Announcement 29/07/2021)

In totality, OBM’s 100% owned Davyhurst Gold Project comprises six key deposits, including Riverina, Missouri, Waihi, Golden Eagle underground, Callion and Sand King open pits.

In the past few months, the Company has expedited work across these deposits and continues to build on the encouraging results. OBM has also developed significant infrastructure at the processing plant and delivered its first gold pour in February 2021.

RELATED ARTICLEOra Banda Mining (ASX:OBM) concludes capital work program; prepares for further work  

The OBM stock was noted at AU$0.140 on 29 July 2021.

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