Ora Banda Mining has firmly committed to its organic growth strategy, with the board approving a substantial $63 million investment package. This funding is earmarked for enhancing processing capabilities, mining operations, and camp infrastructure at the company's wholly-owned Davyhurst gold project, located in the heart of Western Australia's prolific goldfields region.
Major Processing Plant Advancement
The cornerstone of this investment is a $10 million allocation to progress the proposed standalone processing plant. This facility is designed with a capacity of three million tonnes per year (Mtpa). The funds will facilitate the transition from the definitive feasibility study (DFS) phase to front-end engineering design (FEED), marking a critical step towards actual construction.
The company anticipates completing the plant's construction early in the June quarter. Concurrently, Ora Banda is refining the final design specifications and capital expenditure requirements for a new mill. This mill will be situated adjacent to the existing 1.2Mtpa Davyhurst processing facility, effectively addressing current milling bottlenecks as underground production activities intensify.
Waihi Open-Pit Mining Development
A significant portion of the investment, totalling $30 million, is dedicated to initiating open-pit mining operations at the Waihi site. Located merely three kilometres from the Davyhurst plant, Waihi is set to become the company's third active mining operation.
The development plan involves feeding extracted ore to the existing mill. Additionally, the modest open-pit mine will serve as a potential platform for future underground mine portals, should deeper drilling campaigns continue to yield promising results. Recent drilling at Waihi's Golden Pole lode has produced exceptional outcomes, including a standout intercept of 7 metres assaying 27.4 grams per tonne (g/t) of gold, with a 2-metre section grading an impressive 87.5g/t gold.
Key Project Metrics and Timeline
Key operational metrics for the Waihi development include a life-of-mine strip ratio of 7.4:1, targeting approximately 235,000 tonnes of ore. The ore boasts an average grade of 1.7g/t gold, which is expected to yield around 12,700 ounces of gold over an eight-month production period.
Mining operations are scheduled to commence in the March quarter, with milling activities projected to extend into the 2027 financial year. The $30 million investment is subdivided, with $16 million allocated for open-pit infrastructure and $14 million for waste stripping activities. A resource update for Waihi, incorporating the latest drilling data, is planned for the June quarter.
Infrastructure and Workforce Expansion
To accommodate the growing workforce necessitated by the project's expansion, $23 million of a total $34 million camp upgrade budget is being directed towards accommodation enhancements. This includes the construction of a new 150-room village at the Siberia site and an additional 100 rooms at Davyhurst. These upgrades will elevate the total accommodation capacity to 400 rooms, ensuring adequate housing for operational staff.
Financial Backing and Strategic Outlook
All approved expenditures are fully funded from Ora Banda's robust cash reserves, which stood at A$155 million as of the end of December last year, supplemented by ongoing strong cash flows. This new capital injection increases the FY26 growth capital guidance to $143 million, representing a $57 million rise, while exploration and resource development budgets remain steady at $73 million.
Ora Banda is executing a prudent long-term strategy by leveraging existing infrastructure, pursuing organic growth opportunities, and positioning itself for larger production scales without overextension. In a sector where operational execution is paramount, this commitment appears to be a solid step towards transforming the Davyhurst project into a genuine multi-mine, multi-million-ounce gold production story.
With the current Australian gold price holding strong at $7,845 (US$5,559) per ounce, the precious metal continues to demonstrate significant market strength. Ora Banda Mining is strategically positioned to capitalise on these favourable conditions and drive forward its ambitious expansion plans in Western Australia's gold sector.
