Ora Banda advances 300,000oz growth ambition

• New processing plant construction remains on schedule and within budget
• Waihi underground development and Palmerston decline commenced ahead of schedule
• Infrastructure upgrades and drilling access support the next growth stages

Special Report: Ora Banda Mining is progressing its ambition of becoming a 300,000oz per year gold producer at full speed with work advancing on a new processing plant and two underground developments.

During the September quarter, construction progressed on the new 3Mtpa Davyhurst processing plant and development began at Waihi Underground.

The Palmerston decline at Sand King North, which followed in early October, is also ahead of schedule.

Ora Banda (ASX:OBM) describes DRIVE to 300 as an aspiration to double production to 300,000oz in FY2029, not a production target.

The projects are advancing alongside infrastructure upgrades and work to open up further drilling areas.

Building the processing platform

Substantive works on the new plant included bulk earthworks, footings and structural steel for the milling and crushing circuits, as well as concrete footings and pedestals for the carbon-in-leach circuit.

Construction remains on schedule and within budget, with all long-lead and critical-path items sourced or ordered.

The new facility is scheduled for delivery in early 2028, with 3Mtpa of processing capacity compared with the existing Davyhurst plant’s 1.2Mtpa.

OBM has been using third-party processing to supplement its current capacity.

Supporting works included completion of the plant construction camp and an expansion of the run-of-mine pad to provide more ore storage ahead of the planned stockpile build.

About 380,000t of low-grade stockpiles are available as commissioning material for the new plant.

The new Siberia accommodation village, with more than 150 rooms, was completed in October. It is designed to improve amenities and substantially reduce daily commuting times for the Sand King crew.

“It is great to see our DRIVE to 300 projects all on schedule as we pursue our aspiration of doubling production to 300,000 ounces and a step-change improvement in unit costs in FY29,” managing director Luke Creagh said.

Bringing the mine pipeline forward

Waihi Underground began development in September, becoming the third underground mine started in three years.

The mine is scheduled to contribute high-grade ore from mid-2027, ahead of the new plant’s planned start in early 2028.

OBM has redeployed Riverina’s second jumbo to Waihi.

Riverina will operate with one jumbo until the new plant is complete, when mining volumes may increase as required.

Development at Waihi will establish drill drives for follow-up drilling along strike and at depth at Golden Pole and Midnight, as well as further work on the main Waihi line of lode.

Palmerston’s new decline is expected to provide underground drilling access to Sand King North, where OBM plans to target potential mine-life extensions.

At Sand King, development metres increased 14% during the quarter. With the bulk stope completed, OBM expects additional stoping fronts to lift grade and mining volumes through the remaining FY2027 quarters.

A maiden Little Gem Mineral Resource is expected in late Q2 or early Q3 FY2027.

The development program is progressing alongside an operating quarter affected by wet-weather haulage interruptions and an extended mill shutdown for maintenance and a gearbox changeout.

Gold production was 33,305oz, including 11,609 attributable equivalent ounces from third-party processing, while gold sold totalled 33,939oz.

All-in sustaining costs rose to A$4214/oz sold from A$3870/oz in the June quarter. OBM maintained FY2027 guidance, while discussions continue on third-party processing beyond October.

This article was developed in collaboration with Ora Banda Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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