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Highlights
- Sand King Underground ore surpasses gold yield expectations
- Early grade control drilling suggests a 19% increase in gold ounces
- The mine is on track to achieve steady-state production by June
Ora Banda Mining (ASX:OBM) has received a positive surprise from its Sand King Underground Mine, as initial ore processed through the Davyhurst plant has yielded better-than-expected results. The reconciled gold grade came in at 2.4 grams per tonne (g/t), exceeding the forecasted 2.3 g/t by 4.3%. Additionally, metallurgical recovery outperformed expectations, reaching 88.2% instead of the anticipated 87%.
This early success has been further reinforced by grade control drilling, which indicates a 19% increase in gold ounce endowment compared to prior estimates. The new data suggests that the deposit holds around 21,000 ounces of gold, surpassing the previously estimated 17,000 ounces. This uplift has been attributed to discrete ore lodes, which have contributed additional gold beyond initial projections.
Operational Strength and Resource Growth
According to managing director Luke Creagh, the smooth ramp-up of operations at Sand King Underground reflects the company’s ability to identify and rapidly develop underground mining opportunities. The positive reconciliation of development ore against final investment decision (FID) assumptions strengthens confidence in the site’s long-term potential.
Early drilling data has also revealed at least three localized “blow-out” zones, indicating areas of high-grade gold mineralization. These zones present opportunities for bulk stoping, with drill results returning notable intercepts such as 7.2 meters at 17 g/t gold. Such discoveries could enhance operational efficiencies and further optimize resource extraction at the site.
Path to Steady Production by Mid-Year
Ora Banda Mining (OBM) has confirmed that the Sand King Underground Mine remains on track to achieve its steady-state production rate by June. Key capital projects at the site have already been completed, including the commissioning of the primary fan and escapeway in February. These milestones mark significant progress in establishing a fully operational and sustainable underground mining operation.
With these positive developments, the company continues to advance its underground strategy while strengthening its position in the gold sector. The promising results from Sand King Underground provide a strong foundation for future growth and production stability.
