- Ora Banda has streamlined operations to focus on the Missouri open pit and processing of stockpiles.
- OBM looks to finalise the Riverina Stage 1 open pit in Q4 of FY22 while continuing to focus on achieving process plant stability at name-plate capacity.
- OBM looks to expedite cash generation for financing the exploration and resource development activities.
Gold producer Ora Banda Mining Ltd (ASX:OBM) has announced that the company is undertaking a strategic review of its Davyhurst operations. Recently, OBM has been pursuing opportunities across several deposits at its 100%-owned Davyhurst Gold Project.
RELATED ARTICLE: Ora Banda (ASX:OBM) closes AU$20 million equity raising
Source: OBM Website
Stages of the strategic review
OBM has already concluded the Stage 1 of review with the delivery of an initial 24-month plan to enhance productivity, minimise costs and bolster its cash position to invest back into exploration and subsequent mine resource development.
The Company looks to begin the rollout of this plan immediately. The decision for undertaking the strategic review comes in light of the previously disclosed issues related to production and cost performance by the Company.
Through the next stage of the review, Stage 2, OBM will focus on resource development and sustainable mine production after 24 months.
Rationalising the Riverina and Missouri open pit mining fleets
According to OBM, the mining of Riverina Stage 1 open pit will be completed in the fourth quarter of FY22. Moreover, in order to enable a single mine operational focus on the Missouri open pit for the next six months, OBM has deferred a smaller Sand King Stage 1 pre-strip until November 2022.
Source: OBM Announcement 20/01/22
The Company looks to utilise its current Riverina and Missouri mining fleets with an aim to meet the operational requirements at Missouri.
Supplementing ore from mining operations at Missouri
Currently, OBM is also advancing on a program foreshadowed during the recent capital raising to support operational enhancements at the process plant.
OBM also looks to supplement the ore recovered from open pit mining operations at Missouri with the ore from present surface stockpiles to operate its processing plant at a name-plate capacity of 1.2 Mtpa for the upcoming two years.
Source: OBM Announcement 22/02/22
Exploration expenditure focuses on new discoveries
OBM has made an allowance for exploration and resource development drilling activities. The exploration expenditure will aim at new discoveries and will follow up on major first-pass air-core results, including the Sky Prospect, Greater Pacific and the Sunraysia North trend.
Besides this, OBM will drive its resource development activities to focus on upcoming mine targets, including the Riverina Underground and the Iguana Deposit.
OBM is a gold explorer and developer that holds one of the largest ground positions in the Eastern Goldfields. All eyes now remain on how soon the Company can deliver on its plan to improve productivity, lower costs and invest in exploration and next mine resource development.
OBM stock was noted at AU$0.050 on 14 April 2022.