Ora Banda Mining has reported significant growth in its mineral resources and ore reserves at its Davyhurst gold project, about 100 kilometres northwest of Kalgoorlie, reinforcing its position as a rising Western Australian gold producer.
Its total mineral resource estimate now stands at 26.8 million tonnes (Mt) at 2.4 grams per tonne (g/t) for 2.11 million ounces of gold, a 160,000-ounce increase after mining 108,000 ounces since June 2024.
Key growth came from the company’s Riverina Underground resource, which is up 25 per cent to 7Mt at 2.6g/t for 586,000 ounces, and from Sand King Underground, up 14 per cent to 3.9Mt at 2.8g/t for 348,000 ounces.
Total ore reserves also saw a 24 per cent boost to 3Mt at 2.4g/t for 236,000 ounces, with underground reserves increasing 24 per cent to 1.66Mt at 3.3g/t for 176,000 ounces.
The company last released a mineral resource and reserves statement in July last year. It has achieved impressive growth in underground reserves from zero to the current 176,000 ounces in three years with minimal drilling, contrasting with its budgeted $73 million, 329,000-metre campaign planned for the 2026 financial year.
Today’s 2025 financial year update shows Sand King Underground ore reserve surged an impressive 54 per cent to 829,000t at 3.2g/t for 84,000 ounces, while the Riverina Underground reserve grew 5 per cent to 825,000t at 3.5g/t for 92,000 ounces.
The estimates use a conservative $2500 per ounce gold price for cut-off grades to prioritise higher-margin ounces.
This upcoming program, the largest in Davyhurst’s 130-year history, aims to extend the mine lives at Riverina and Sand King, advance the company’s Little Gem discovery and test other high-potential targets, including Waihi and Round Dam.
Ora Banda Mining managing director Luke Creagh said: "The rapidly improving underground resources and reserves after depletion is testament to the continuity and quality of the Riverina and Sand King underground mines, both of which remain open at depth and laterally. Riverina and Sand King underground drill platforms are currently being developed, which puts us in a position to drill significant extensional programs to extend and convert mineralisation at both mines in FY26.”
Other recent drilling successes, including high-grade intercepts at Riverina 300m below the current mine plan and expanded mineralisation at Sand King, signal further upside. Those results have yet to be included in the company’s resource updates, which are slated for the second half of FY26.
Financially, Ora Banda finds itself in a robust situation, with $84.2 million in the kitty at the end of FY25, up a handsome $57.4 million. The company has more than $130 million in liquidity following its $50 million syndicated facility agreement with the ANZ and Commonwealth banks.
The company has also secured 100,000 ounces of put options at $4400 per ounce to hedge against gold price volatility.
Ora Banda’s FY26 guidance anticipates a 60 per cent gold production increase to between 140,000 ounces and 155,000 ounces, supported by a full year’s contribution from the Sand King operation and a proposed ore sale agreement with Norton Gold Fields.
The company is investing heavily in growth, with $86 million allocated for mine development, process plant upgrades and infrastructure, including on-site airstrips and haul roads.
A feasibility study to expand Davyhurst’s throughput to 3Mt per annum is underway to address milling constraints, which would position Ora Banda for record production and cash flow in FY26.
Meanwhile, Ora Banda has finalised agreements with Wesfarmers subsidiary Davyston Exploration for a farm-in and joint venture covering non-gold mineral rights at Davyhurst.
The deal includes a 2 per cent royalty payable to Ora Banda, with 1.5 per cent of that royalty sold to Hawke’s Point for $4 million, offset against a matching loan amount.
Ora Banda’s resource growth and aggressive exploration strategy signal a bright future for its Davyhurst operations. With a strong balance sheet and record drilling plans, the company is well-positioned to capitalise on high gold prices and draw further value from its portfolio.
The company’s next resource updates and production milestones, expected halfway through the next financial year, should be worth watching.
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By Doug Bright
