Ora Banda Mining has hailed a strong finish to the financial year after mining a record 16,700 gold ounces at its Missouri open-pit mine in the June quarter – a 49 per cent increase from the previous period.
The company churned through more than 229,000 tonnes at a grade of 2.3 grams per tonne gold from Missouri, with higher volumes based on the back of the operation’s WMC and Monarch lodes being exposed and mined.
The open-pit mine has been a significant improver for Ora Banda after it produced 9200 gold ounces in the first quarter of the financial year to record an impressive increase of 82 per cent a year later. Mined grades at Missouri also increased by 42 per cent during the year, from 1.7g/t gold in the first half up to 2.4g/t in the second half.
During the June quarter, the company also kicked off the development of its Riverina underground operation that holds a resource of more than 300,000 gold ounces and remains open in all directions. The project forms a major part of Ora Banda’s “DRIVE to 100” project, which is aimed at a clear production target of 100,000 gold ounces per annum by 2025. With a higher ore grade of 4.3g/t gold, management believes Riverina has the potential to significantly increase production and lower costs.
The company’s successful 12 months is represented by its 2024 financial year production guidance of 67,000 to 73,000 gold ounces at an all-in sustaining cost of between $2200 and $2400 per ounce.
Key highlights for the quarter included the start of the Riverina Underground mine which was discovered, approved, financed and commenced within just 10 months of the Company committing to its high grade, underground strategy. Furthermore, operational improvements at the Missouri open pit increased mine volumes and grade such that the open pit is now set up to produce at less than half the strip ratio of FY23. Ora Banda Mining managing director Luke Creagh
In April, the company also hit significant lithium results from an initial three-hole exploration campaign at its Federal Flag prospect, just 10km from its Davyhurst gold processing plant near the Western Australian mining hub of Kalgoorlie. Assays confirmed the presence of lithium-caesium-tantalum pegmatites, in addition to potential lithium-bearing spodumene, with an 11.1m hit at 1.28 per cent lithium oxide from 54m.
The lithium program also highlighted additional high-grade gold at Federal Flag, with a 1m hit at 98.8g/t gold from 94m, including 0.7m grading an impressive 140.69g/t gold from 94m. Management believes the presence of both lithium and high-grade gold shows the potential for two styles of mineralisation with complementary geometries for possible future open-pit mining.
Last year, management 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.
Ora Banda finished the financial year with about $24.7 million in cash and with another $9 million expected to be received once the sale of its Mt Ida project is finalised next month.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au