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Highlights
- First ore intersected at Sand King Underground within planned timelines.
- Grade control drilling reveals multiple high-grade gold lodes.
- Steady-state production projected to begin in mid-2025.
Ora Banda Mining (ASX:OBM) has achieved a significant milestone at the Sand King Underground Mine, part of the Davyhurst Gold Project in Western Australia. The company intersected its first ore just four months after establishing the portal, marking a key step in its "DRIVE TO 150 Project." This milestone demonstrates Ora Banda’s commitment to meeting its development timelines and advancing production capabilities.
The Sand King Underground Mine is on track to commence stoping operations by early 2025, with steady-state production expected by mid-year. The project is projected to deliver approximately 60,000 ounces annually, positioning it as a major contributor to the company’s output. Development progress has been robust, with 427 meters of decline and 835 meters of total development completed under favorable ground conditions. Key infrastructure and surface facilities have been completed on schedule and within budget, with the final installation of the primary ventilation fan planned for January 2025.
Grade control diamond drilling at the site has advanced, with 5,477 meters completed out of a planned 45,400-meter program. Drilling results have revealed multiple high-grade gold lodes, including significant intercepts such as 6.0 meters at 9.5 g/t gold, which included 3.5 meters at 13.7 g/t, and 2.7 meters at 13.2 g/t, including 2.3 meters at 14.0 g/t. These results align with resource model expectations and indicate considerable potential for bulk mining opportunities. A small surface drilling program at Sand King North also yielded encouraging results, further extending known lodes and enhancing the project’s overall potential.
The resource estimate for Sand King Underground was significantly upgraded in mid-2024, with a 176% increase to 3.4 million tonnes at 2.8 g/t gold for 304,000 ounces. The maiden ore reserve estimate stands at 537,000 tonnes at 3.2 g/t gold for 55,000 ounces. The resource remains open in all directions, and exploration continues to uncover new opportunities for expansion. Ora Banda’s development plans incorporate design elements to maximize potential from future resource conversions and extensions.
Progress at Sand King, coupled with production from the Riverina Underground, is set to deliver a step change in Ora Banda’s production profile. The company’s combined production outlook targets up to 160,000 ounces annually by FY26, underscoring the transformative impact of the Sand King Underground Mine on Ora Banda’s operational and financial trajectory.
