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Highlights
- Ore reconciliation at Sand King mine reveals a 4.3% higher gold grade than expected, with a strong recovery rate of 88.2%.
- Grade control drilling suggests a 19% increase in the deposit’s gold endowment, presenting expansion potential.
- Development progresses steadily, with improved infrastructure and promising bulk mining opportunities.
The Sand King underground mine, a key asset within the portfolio of Ora Banda Mining (ASX:OBM), continues to demonstrate encouraging advancements. The latest ore reconciliation results indicate a 4.3% increase in gold grade, bringing it to 2.4g/t, alongside an efficient recovery rate of 88.2%. These results further solidify the project's potential within the Davyhurst gold project in Western Australia.
So far, the mine has completed 1,866 meters of development, with expectations for a continued increase in mining rates as key infrastructure is finalized. With the first production level progressing steadily, output is anticipated to ramp up in the fourth quarter of FY2025, marking a crucial milestone for the project’s expansion.
Higher Gold Reserves Unveiled Through Drilling
Recent grade control drilling has provided an optimistic update, with results pointing to a 19% increase in the mine’s gold reserves. This improvement expands the gold endowment from 17,000oz to 21,000oz, reinforcing the project’s long-term potential.
The drilling has also identified high-volume zones, commonly referred to as “blow-out” areas, where intersecting tension veins contribute to localized volume increases. This presents an opportunity for bulk mining, which could significantly improve overall production efficiency. Additionally, the latest findings suggest potential extensions in the “Big Dog” lode, located south of the current mine design. To further investigate and leverage these findings, the company plans to commission a second drill jumbo, boosting exploration activities in the region.
Ore Processing and Future Outlook
Since operations began, the mine has processed 24,910 tonnes of ore, producing 1,907oz of gold—exceeding initial expectations by 4.3%. The long-term outlook remains ambitious, with an annual production target set between 140,000oz and 160,000oz for FY26. This positions the Sand King mine as a crucial component of the company’s broader Drive to 150 initiative, which also includes operations at the Riverina Underground site.
The site currently holds an estimated resource of 3.4 million tonnes at 2.8g/t, equating to 304,000oz of contained gold. This solid resource base underscores the mine’s ability to contribute significantly to the company’s production pipeline, reinforcing the long-term strategy for operational growth and increased shareholder value.
