Ora Banda Mining has seen a mined gold grade increase of more than 50 per cent at its operations to 2.5 grams per tonne over the March quarter compared to an average of 1.7 g/t gold in the previous six months.
The significant grade increase caps a solid three months for the company that also included an almost 5 per cent increase in gold produced with a total of 12,310 ounces against 11,803 ounces in the December quarter and 11,720 ounces through the September quarter.
Ore processed during the March period totalled 260,138 tonnes at an average grade of 1.6g/t, representing a 15 per cent increase in head grade from the December quarter. The average realised gold price for the March quarter was $2776 per ounce and generated sales revenue of $34.5 million.
March was a busy month for Ora Banda with the company also given the green light to commence mining at its Riverina underground gold deposit near Kalgoorlie after receiving financial investment decision approval from the board of directors. The approval supports its 2025 financial year production target of 100,000 gold ounces per annum.
During the period Ora Banda received binding commitments for or entered into agreements for payments of up to $44.2 million to support the development of Riverina Underground and ongoing exploration on its leases. This includes a $30 million equity raise, the sale of non-core Lady Ida tenements for $12.5 million and a variation in its terms with major shareholder Hawke’s Point debt and royalty agreement worth an additional $1.7 million.
Ora Banda Mining managing director Luke Creagh said: "Looking forward, the company expects to strengthen further with the start of the Riverina underground mine in the June quarter and continued improvements at the Missouri open pit because of a lower strip ratio which will reduce costs and increase ore volumes."
In February Ora Banda revealed it had doubled the underground mineral resource at Riverina to more than 300,000 gold ounces. The gold producer also announced a maiden ore reserve for the Riverina system near Kalgoorlie of 73,000 ounces at a solid grade of 4.3 grams per tonne gold.
With permitting and mining approvals already in place, management expects to enter steady state production in the fourth quarter of the 2024 financial year at a targeted production rate of 600,000 tonnes per annum.
The current underground resource of more than 300,000 ounces remains open in all directions and a second-phase drilling program will target extensions to the mineralisation envelope further south and at depth.
Ora Banda last year outlined a strategic reset after a detailed review of its flagship Davyhurst mining and processing operations, which sit about 120km north-west of Kalgoorlie. Part of the new strategy includes developing the Riverina underground complex based on the existing infrastructure in the area. Ore from Riverina has been processed at Davyhurst with recoveries of about 92 per cent.
The company finished the March quarter with more than $11 million in cash which does not include the commitments or agreements worth up to $44.2 million. With a clear pathway to steady annual production of 100,000 gold ounces, the market will be keeping a close eye on what Ora Banda can produce by the end of the financial year.
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By Michael Philipps
