Ora Banda Mining has blasted into the new financial year with soaring gold production of more than 92,000 ounces at the company’s Davyhurst project in Western Australia’s Goldfields, a bulging $84.2 million cash balance and a new high-grade discovery that could redefine its pipeline at Little Gem.
Fresh from a record-breaking 2025, the company says gold production jumped 32 per cent year-on-year thanks to a major uplift at its Sand King underground mine, which hit a 60,000oz annual run rate in June. That performance helped offset delays at Riverina where a raisebore rig holdup pushed about 3000 high-grade ounces into July.
Total June quarter production hit 21,949 ounces including 1389 ounces from a third-party toll treatment campaign through Norton Gold Fields’ Paddington mill. That agreement, which covers up to 400,000 tonnes of ore, is expected to continue feeding supplemental gold into Ora Banda’s ledger in the coming quarters.
Ora Banda says it is now setting its sights on a further 60 per cent production surge, targeting up to 155,000 ounces of gold in 2026.
The company’s big plans are backed by strong financials.
Notably, despite spending $124 million on capital project, mine development and exploration over the past year, Ora Banda still grew its cash reserves by $57 million, closing the June quarter up $3.5 million even after outlays of nearly $41 million. Management has now set an ambition FY26 production target of between 140,000 and 155,000 ounces representing a 60 per cent uplift.
The company is forecasting an all-in sustaining cost of $2800–$2900 per ounce for this year, which provides for plenty of profit margin in the context of today’s gold price - hovering near record highs around A$5100 per ounce.
Ora Banda Mining Managing Director Luke Creagh said: “FY25 was a very successful year for Ora Banda. We delivered record production with over 30% improvement on the previous year. Our next phase of growth forecasts a production increase by over 60% to between 140 and 155 thousand ounces with strong cash flow underpinning capital investment to right-size our infrastructure, including a feasibility study to more than double processing capacity to approximately 3Mtpa.”
However, it’s what is happening below the surface that could define Ora Banda’s next chapter.
The company’s $73 million exploration war chest is already bearing fruit. At Riverina Deeps, infill drilling has confirmed a robust system extending 1km vertically with high-grade hits such as 1.7m at 76.4 grams per tonne (g/t), 4.3m at 24.6g/t and 1.0m at 92.4g/t.
Although the Davyhurst project is now producing at scale, the company says these results have delivered clear evidence of its ability to increase the resource and have paved the way for a multi-year mine life extension.
At the company’s Waihi prospect, drilling below the historic pits unearthed a new mineralised zone returning 8.7m at 9.3g/t, including a sizzling 0.4m at 90.6g/t. Follow-up work is now being planned to see just how deep this rabbit hole goes.
But the real exploration fireworks could be emerging at the company’s exciting new Little Gem prospect where, what began with five holes, has transformed into a fully-fledged discovery. The now-completed phase two drill campaign at site has confirmed a high-grade, multi-lode system, which is still open at depth and extends more than 1,000 metres along strike.
Standout hits include 22.7m at 5.0g/t and 8.8m at 6.3g/t, with four lodes now officially named and modelled as Diamond, Ruby, Sapphire and Tanzanite.
Phase three drilling is now underway, comprising 38 new holes targeting the Diamond and Ruby lodes from surface down to 750 metres.
Interestingly, Little Gem displays the same, geological hallmarks that made the company’s Riverina mine a winner - steeply dipping lodes and south-plunging gold shoots. Management believe these familiar features could be the key to unlocking a repeatable pipeline of high-grade hits across the entire Davyhurst belt.
Ora Banda now has two diamond rigs and an RC rig on site and has firmly set its sights on a fast drilling campaign to define the scale of the prospect before adding Little Gem to the company’s global resource inventory.
Adding to Ora Banda’s exploration appeal, the company also sees blue-sky potential in the same largely untouched western mafic rocks that host Riverina, immediately to the north of the Little Gem. Drills are being lined up to chase this new frontier and test just how far the gold story can go.
Meanwhile, the company is also preparing a feasibility study to double processing capacity at Davyhurst to 3 million tonnes per annum, which would accommodate the increasing ore flow from Sand King, Riverina and new discoveries such as Little Gem.
All signs point to 2026 being a breakout year for Ora Banda. With production surging, discoveries stacking up and cash reserves to fund it all, the company appears to have plenty of horsepower to chase serious upside.
And if Little Gem continues to sparkle, it might just become the prize piece for Ora Banda in an already glittering crown.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
