- Ora Banda Mining has been actively moving towards recommencement of production at its fully owned Davyhurst Project.
- Drilling programs undertaken in the past across its highly prospective landholding spread over an area of 1,350km2.
- Lately, OBM has been mobilising its mining team to the production site, and the production is planned to start with the Riverian and the Golden Eagle deposit.
Gold explorer and developer having a distinctive position Ora Banda Mining Limited (ASX:OBM) boasts an exceptionally prolific Davyhurst Gold Project. For a considerable period of time, OBM has been engaged in mineral development at this prolific land asset as well as exploration and evaluation of mineral in the area.
In the past, OBM has continued to undertake drilling programs across its highly prospective landholding spread over an area of 1,350km2 and comprises of prospective greenstone belts.
Recent Activities of OBM
A look at the Company’s recent fast-tracked activities across the project indicates that it is very close to producing first gold from its 100%-owned Davyhurst Gold Project. Moreover, OBM remains on track for first gold production in the early part of the first quarter in the calendar year 2021.
OBM has made use of the existing processing infrastructure to facilitate the restart of operations at Davyhurst. Further encouraging insights were offered from the Definitive Feasibility Study (DFS) that was concluded by the end of June 2020. Few observations from the DFS include the estimated pre-production capital costs of A$45 million as anticipated.
In conclusion, the DFS offers enhanced confidence as it offers ample insight in updating the mine plans as well as making forecasts related to production and costs. The Company has minimal capital hurdles along with a comparatively shorter time frame for production and significant potential for exploration.
Adequate Funding Position
On the funding front, OBM looks well-positioned after raising $55 million in fresh equity to finance the last phase of development activities for the restart and to provide some additional working capital. Prior to this, OBM raised $18.5 million in August, which received solid support from existing as well as fresh professional and sophisticated investors. This funding was aimed at fast-tracking its program related to high-grade gold resource and reserve definition and regional exploration while financing early-stage processing plant works.
Presently, the Company’s existing cash and $55 million capital raising strengthens OBM’s stance to meet the financial requirements associated with capital costs and working capital to reinitiate production at Davyhurst project.
Report from the Ground Level
At the ground level, the Company’s mining teams are mobilising to the mining sight to facilitate production at the project. The production process is planned to kick start with the Riverian Open-pit and the Golden Eagle Underground Operation.
Subsequent to this, OBM has planned a sequence mining program for the other five open-pits that OBM has.
Grade Control Drilling (Source: ASX Announcement 29 October 2020)
OBM also announced a maiden resource for the Riverina South Extension and a small project that is around a kilometre away from the Riverina mining called British Lion. Here, OBM conducted a 10,000-metre drill program and came up with an inferred resource and is currently engaged in planning to bring this up to indicated category. This shall further be incorporated into the Riverina open-pit mine plan.
Source: ASX Announcement 5 June 2020
At present, the Company needs to ensure that around 100,000-tonnes of ore is maintained ahead of the process planned in order to ensure continuity before going into the production. Therefore, over the course of three months till January, OBM has plans to build stocks of the ore for the commencement of processing it at the end of January/February.
Hydro blasting (Left) Surface treatment within the leach circuit (Right) (Source: ASX Announcement 29 October 2020)
As per the latest update from OBM, the Company remains on track to conclude the works on the processing plant before the end of the calendar year 2020.
On 18 December 2020, OBM share price quoted at $0.280 with a market capitalisation of $235.82 million.