- Ora Banda Mining Limited owns highly prospective grounds in Western Australia’s Eastern Goldfields region, which is a host to multiple gold deposits.
- Ora Banda’s continuous progress at its projects is validated by the encouraging results received by the Company across its portfolio of deposits.
- The COVID-19 led uncertainty and volatility in the market has fueled optimistic outlook for gold is with constraints in supply and increased demand.
- Ora Banda is looking to examine various ways through which potential mining operations can be incorporated into its upcoming mining plans for the areas explored under the RC drilling program.
ASX listed metals and mining player, Ora Banda Mining Limited (ASX:OBM) is a distinctively placed gold exploration and development company that holds some prospective grounds in the highly lucrative Eastern Goldfields region of Western Australia.
Ora Banda’s 100% owned flagship Davyhurst Gold Project is a host to some of the largest deposits within the entire landholding of Ora Banda. More significantly, the project presents significant potential for the discovery of new gold deposits as well as extensions to current resources.
Ora Banda Completes Phase 2 RC drilling program at Riverina Deposit
One of the highly prolific deposits of OBM is Riverina, which is located to the north of the Davyhurst Processing Plant and is surrounded by numerous advanced exploration targets at the deposit. One of five key priority mining targets at the Davyhurst Gold Project is the main Riverina deposit.
Ora Banda has an extensive portfolio of highly prospective deposits and exploration targets in the area.
Recently, Ora Banda had completed Phase 2 RC drilling program over 68 holes for 7,338 metres at the Riverina South. Phase 1 of this drilling program explored the highly prospective strike extension corridor to the south of the main Riverina mining area.
The assay results from the drilling program validated the southern extensions of the Riverina Main Lode trending into the Riverina South area. In addition to this, the prospectivity of the British Lion area is confirmed by the results received in the area that indicate numerous and regular mineralised lodes in metabasalt, metasediment and ultramafic host rocks.
Assay results returned for all holes include the following:
Source: ASX Announcement dated 10 August 2020
The consistent mineralisation and solid grades returned from RC drilling in the areas of exploration are highly encouraging for OBM. In due source, the Company seeks better to define the mining potential in the presently explored areas.
Additionally, Ora Banda has upcoming mining plans for the area, and it is evaluating the potential mining operations which might be incorporated into it.
With mineralization remaining open along strike to the south and down dip, OBM is currently progressing with work on resource estimation which is scheduled to complete in the current month of September 2020.
Underground Resource Increases by 46%
OBM announced an increase of 46% to the underground Mineral Resource for Riverina to 728kt @ 5.9 g/t Au for 139,000 ounces while there was an increase of 16% in the total Mineral Resource to 3.7Mt @ 2.7g/t Au for 322,000 Au ounces at Riverina.
OBM’s continuous engagement in mining studies has helped in upgrading underground Mineral Resource follows further modelling of Riverina Main Lode where historical underground mining was through several shafts and produced 99,500t @ 15.8 g/t gold for 50,490 ounces.
Encouraging Outlook for Gold
Presently, gold is at its best prices and has reached fresh high prices due to the uncertainty and volatility in the market presented by COVID-19.
Moreover, the Australia Department of Industry, Science, Energy and Resources forecasts there shall be an expansion in the gold mine production in Australia and it shall reach its peak of 381 tonnes in 2021–22 on the back of higher gold prices.
Furthermore, as a result of higher prices and export volumes, the forecasted value of Australia’s gold exports is expected to touch a record $32 billion in 2020–21. The worldwide consumption of gold is also expected to grow in 2021 and 2022 at an average annual rate of 4.2 per cent primarily driven by jewellery consumption.
Notably, the innovation in gold jewellery production, resulting in a wider product offering has not only provided the consumers with broader choices but has also pushed the demand for gold higher.
Other than jewellery needs, retail investment is expected to propel consumption of gold globally on the back of growth anticipated in demand for gold bars and coins.
The uncertain times due to COVID-19 restricted the movement, and border closures led to decline in gold recycling activities. Moreover, closure of jewellery stores and lockdowns reduced the physical exchange of gold for cash.
Notably, physical distancing restrictions and the unwillingness of some sellers to visit retail outlets are likely to impact on supply: therefore, gold recycling supply is not anticipated to get back to the levels before COVID-19 over the remaining of 2020.
With the positive gold outlook for the remainder of 2020 and upcoming years, gold miners might look to ramp up production with the reopening economies and activities. Moreover, positive indicators are likely to emerge in the economic progress as the activities return to normalcy.
OBM share price quoted at $0.380 on 16 September 2020 with a market capitalisation of $285.77 million. During the last six months, OBM has generated 238.10% returns to is shareholders.
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