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Highlights:
- First Ore Achieved: Sand King Underground mine intersects first ore, just four months after establishing the portal.
- High-Grade Results: Grade control drilling confirms high-grade ore, with intersections including 3.5m at 13.7 g/t gold.
- Production Outlook: Steady-state production of ~60,000 ounces per annum on track for June 2025.
Ora Banda Mining Ltd (ASX:OBM) has intersected its first ore at the Sand King Underground Mine, a critical component of its Davyhurst Gold Project in Western Australia. This milestone comes just four months after the portal was established, demonstrating the company’s efficient project execution under its ambitious ‘DRIVE TO 150 Project.’
Rapid Development and First Ore Milestone
The initial ore intersections occurred on the 315 Level, marking a significant step forward for Sand King. Mine development has progressed rapidly since the portal was opened in late August, with a total of 835 development metres completed. Initial capital works projects, including the ventilation system, are near completion, with steady-state production anticipated in mid-2025.
Managing director Luke Creagh praised the milestone, stating: “Reaching first ore at the Sand King Underground Mine is exciting, particularly as this has been achieved in such a short timeframe, demonstrating the team’s commitment and focus.”
Grade Control Drilling and High-Grade Results
Grade control drilling has been pivotal in defining the potential of the Sand King resource. To date, 5,477 metres of a planned 45,400-metre underground diamond drilling program have been completed, yielding exceptional results. Key intersections include:
- 6.0 metres at 9.5 g/t gold, including 3.5 metres at 13.7 g/t.
- 3.5 metres at 13.2 g/t, including 1.1 metres at 37.8 g/t.
- 2.4 metres at 14.0 g/t, including 1.7 metres at 17.9 g/t.
The drilling has revealed multiple high-grade lodes and bulk tonnage opportunities, supporting the integrity of the block model and highlighting potential for increased grade and tonnage through further infill drilling.
Surface Drilling Expands Resource Potential
In addition to underground activities, a surface drilling program at Sand King North targeted high-grade east-west ore structures. This program successfully extended known lodes along strike, with results including:
- 8.0 metres at 5.4 g/t gold, including 2.7 metres at 13.6 g/t.
- 2.4 metres at 11.5 g/t gold, including 0.4 metres at 48.0 g/t.
These results underscore the potential to unlock further resources within the broader Sand King mineralized system.
On-Track Production Timeline
Sand King remains on schedule to commence stoping operations by March 2025, with steady-state production of approximately 60,000 ounces per year anticipated in the June 2025 quarter. The mine forms a key component of Ora Banda’s strategy to achieve annual production of 140,000–160,000 ounces by FY26.
Resource and Reserve Growth
The mineral resource estimate for Sand King Underground increased by 176% in July 2024 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 for 55,000 ounces. The resource remains open in all directions, offering significant exploration upside.
Strategic Infrastructure Enhancements
The mine plan includes infrastructure designed to capitalize on future resource expansion, such as drill drives to facilitate deeper exploration. Additionally, an expandable 2 MW power station and upgraded ventilation adit have been implemented to support operational efficiency.
Conclusion
Ora Banda Mining’s progress at Sand King Underground underscores its capability to deliver on ambitious project goals while highlighting the untapped potential of the Davyhurst Gold Project. With high-grade intersections, robust development timelines, and a clear path to production, Sand King is poised to become a cornerstone of the company’s growth strategy in the coming years.
