26/05/2020 - 21:26

Ora Banda banks 330,000 ounces in reserves at Davyhurst

26/05/2020 - 21:26

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Ora Banda Mining continues to exceed market expectations with ore reserves at its Davyhurst gold project leaping an impressive 60 per cent. This latest update puts 330,000 ounces of gold into Ora Banda’s mine inventory and underpins the company’s DFS. Pit design and financial modelling are nearing completion while mine scheduling is well advanced and due to be delivered in June 2020.

Ora Banda Mining continues to exceed market expectations with ore reserves at its Davyhurst gold project leaping an impressive 60 per cent. This latest update puts 330,000 ounces of gold into Ora Banda’s mining schedule and underpins the company’s DFS which is due for release in June.

Ora Banda Mining Managing Director, David Quinlivan, said: “The Company is pleased to update the market on the Ore Reserves for the Davyhurst Gold Project as we progress toward the completion of the DFS. The development of reserves for Waihi and Callion open pit and Riverina underground is continuing and we look forward to delivering these and the full results of a robust DFS in the near future.”

Ora Banda’s 100 per cent-owned Davyhurst project is located 120 km to the northwest of Kalgoorlie in Western Australia. Ora Banda took the asset out of administration in early 2019 after Eastern Goldfields fell over and since then it has been implementing a deliberative strategy that will most likely see Davyhurst rise again.

The company has gone from strength to strength since picking up the project and the upcoming DFS is the culmination of its efforts over the past 12 months.

The Davyhurst gold project takes in an extensive ground holding covering over 1,300 square kilometres and includes the 1.2Mtpa Davyhurst gold plant, a 160-person mine camp, granted mining leases, haul roads and bore fields – all permitted and ready for the commencement of active mining operations.

The company’s production strategy centres on the development of the Sand King, Missouri, Riverina, Callion, Waihi and Golden Eagle gold deposits – all in close proximity to the Davyhurst mill. Growth in the current reserve inventory comes from the inclusion of the maiden reserves for the Riverina open pit and Golden Eagle underground deposits, whilst the Sand King and Missouri open pit reserves both posted 12 per cent increases in contained ounces.

The tabling of the company’s updated ore reserve paves the way for the commencement of active mining with the finishing touches now being placed on the company’s DFS, pending additional updates for the Callion and Waihi deposits.

The latest company update also provided a sneak peek into the DFS, showing pit design and financial modelling nearing completion whilst mine scheduling is well advanced.

Ora Banda’s key asset is its mothballed mining plant which allows it to sidestep the traditional need for at least a million ounces of in ground gold to fund a stand-alone mining plant.

The beauty of the operation is that it can get into quick and easy cash flows without the need for a capital structure killing capex injection and with any luck Davyhurst will be spinning off hundred dollar bills in the not too distant future.

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

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