Sponsored

Ora Banda (ASX:OBM) Enhances Positioning Through Key Developments

  • March 05, 2021 07:27 PM AEDT
  • Team Kalkine
    Team Kalkine
    Team Kalkine
    22208 Posts

    Team Kalkine comprises of experts who understand various markets nuances and are enthusiastic and passionate to provide best possible offerings in the form of insights and stories. The team has rich experience of working across different markets with...

Ora Banda (ASX:OBM) Enhances Positioning Through Key Developments

Source: SARIN KUNTHONG, Shutterstock

Summary

  • Ora Banda Mining has been engaged in achieving significant milestones in its journey towards emerging into a gold producer.
  • OBM had received its first gold pour from the processing plant and secured funding from Commonwealth Bank to meet hedging and working capital objectives. 
  • OBM had further initiated an infill drilling program at Riverina that returned significant assays while mineralisation remains open at depth.

Ora Banda Mining Limited (ASX:OBM), a distinctively placed gold explorer with one of the largest ground positions in the Eastern Goldfields and an experienced team of leaders, has been seeking to recommence production at its flagship Davyhurst project.

Davyhurst is in a region that is a host to gold deposits and includes tenements that have a high potential for Nickel and Copper.

PREVIOUS UPDATE: Ora Banda ASX:OBM Reports A Busy Quarter With Major Progress at Davyhurst

Maiden Gold Pour Achieved

The Company successfully recommissioned its gold processing plant at Davyhurst and received its maiden gold pour in early February 2021. By this time, all supporting infrastructure that was necessary to sustain continuing processing works was in place and had been commissioned.

First gold bar being poured and first gold bar (Source: ASX Announcement 08 February 2021)

This gold pour marked a notable milestone in the Company’s journey to emerge into a producer from a developer amid challenging circumstances of the past year and ongoing year. The Company now looks to focus on the progressing ramp-up of activity as the Company moves towards a steady position.

INTERESTING READ: How close is Ora Banda (ASX:OBM) for production at Davyhurst?

Infill Drilling Returns Assay Results

In December 2020, OBM had recommenced an infill drilling program at the Riverina South deposit located within the Davyhurst Project. The program was targeted at closing the present drill spacing to a 20m x 25m pattern from 40m x 25m pattern and returned assay results.

OBM believes that the mining shall allow the Company to upgrade the inferred resource to indicated mineral resource. Moreover, OBM views Riverina as the project that is on track to generate mine extensions with continuing deeper drilling.

Proximity of Riverina to the Main Mining Area (Source: ASX Announcement 10 February 2021)

INTERESTING READ: ASX:OBM Going Tongs and Hammer for Production at Davyhurst

OBM is keen to assess this upgraded mineral resource's contribution to the ore stream pouring from core Riverina open pit mining activities. The mining is gradually gaining speed, and the Company believes that the time is just around the corner to integrate Riverina South into this bigger operation.

Riverina Area Location Plan (Source: ASX Announcement 10 February 2021)

More Funding For Supporting Ramp Up of Activities

OBM has inked a credit approved offer on the funding front with the Commonwealth Bank Of Australia (ASX:CBA) worth $15 million regarding hedging and working capital objectives. This funding encompasses the below-mentioned components: 

  • $5 million for buying put options.
  • $10 million for development expenditure and overall working capital.

OBM stated that the funding facilities should assist the Company in prudently managing risk and capital throughout the ramp-up phase.

These funding facilities are another major step in OBM’s transition with substantial exploration upside.

INTERESTING READ: Ora Banda Mining Ready to Get the Boots on the Ground; Highlights Key Validations from DFS at Davyhurst Project

OBM Appoints New CEO

Lately, the Company has also made changes to its leadership team with a view to fortify its expertise. OBM has hired Mr Peter Nicholson for the role of Chief Executive Officer (CEO), effective from 2 April 2021. The present Managing Director (MD) and CEO of OBM, Mr David Quinlivan, shall retain the role of MD after the appointment of Mr Peter Nicholson.

Mr Nicholas has around 2.5 decades of operational and mine management experience and a depth of experience in private equity across global mining and mining services.

OBM views this as a significant appointment for the Company and looks forward to benefitting from Mr Nicholson's diversified expertise towards the growth and success of OBM.

Overall, OBM has been taking substantial steps to ensure continuity in production at Davyhurst and enhance its positioning as a unique gold producer.

Related: Ora Banda Reports Significant Increase in Mineral Resources at Riverina Project, A Walk-Through Yearly Developments

OBM share price closed at $0.245, with a market capitalisation of $214.76 million on 5 March 2021.

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is 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. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
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