Ora Banda steadies for a strong 2023
Ora Banda Mining is bracing for a year of strong gold production with lower costs at its mining operations in WA’s Goldfields.
Amid rising costs across the industry, the company announced a strategic overhaul in April last year following a detailed review of its flagship Davyhurst mining and processing operations, about 120km northwest of Kalgoorlie.
It’s a strategy that seems to be starting to pay off.
The company’s latest December quarter report marked overall improvements in mining productivity with the same fleet by 27 percent and a 33 percent increase in mined ounces from the previous quarter.
On the processing front, nearly 292,000 tons of dirt were processed at an average grade of 1.4 grams per ton, an 11 percent improvement from the September quarter and just shy of nameplate capacity of 1.2 million tons per year.
The company’s efforts to eliminate processing bottlenecks resulted in a record-breaking 109,000 tonnes of dirt pushed through the mill in December alone, providing the final cherry on top for the gold miner.
The company sold 11,881 ounces at an all-in sustainable cost, or ‘AISC’ of $2,993 per ounce, but is hopeful that its ongoing operational improvements will put downward pressure on its AISC for the second half of the financial year with guidance in the neighborhood of $2,100 to $2,300 per ounce.
Ora Banda says it is on track to extract 56,000 to 61,000 ounces of the precious yellow metal for the financial year at an AISC of $2,400 to $2,600 per ounce.
The gold miner sold 11,771 ounces during the quarter, generating sales revenue of just over $31 million and ending the quarter with more than $22 million in the can.
We are now in a very exciting phase of our growth. As the economics of the operation improve and we advance the Riverina underground project, we are on a real path to deliver significant production growth in the next 12 months.
Part of the new strategy for the company includes the development of its Riverina underground mine in the second half of the 2023 financial year which could potentially put the company on track to increase its gold production.
An updated mineral resource estimate for the Riverina, due in the coming month, will receive a boost after a joint exploration effort doubled the depth of known gold mineralization from 240m to 480m.
Principal intercepts from the 46-hole diamond drill press include 2.5m at 29 g/t gold from 232m, a 2.4m intercept of 26.4g/t from 320.6m and a 1.2m – strike recording an impressive 51 g/t gold from 257.8 m.
The mineralization envelope remains open in all directions.
Ora Banda’s economy will undoubtedly benefit from the recent run in the gold price, which peaked at a ten-month high of US$1,948 late last week. Interestingly, demand for the precious yellow metal is favored as the Chinese population freely celebrate weddings and festivals after years of strict Covid19 restrictions. The traditional gift at a Chinese wedding is gold jewelry.
Is your ASX listed company doing something interesting? Contact: [email protected]
