Summary
- Ora Banda Mining Limited has endured several milestones in its journey to advance the 100% owned Davyhurst project towards production.
- OBM has demonstrated strong dedication towards revealing the true potential of its rospective landholding in the globally renowned region.
- Six key deposits underpin OBM’s strategy for production at the Davyhurst at the project that has demonstrated material upside for OBM.
- OBM looks forward to commencing production at the Davyhurst in the first quarter of CY2021 as almost all the approvals have been obtained.
Ora Banda Mining Limited (ASX:OBM) is an extraordinarily placed gold exploration and development company that owns the Davyhurst Gold Project. The project is located in Western Australia’s highly productive Eastern Goldfields region.
OBM shares strong commitment towards unravelling the material value from its strategic and prospective landholding and is, therefore, is in pursuit of resource development activities at five advanced project areas. These key project areas include various prospective deposits, namely Riverina, Waihi, Siberia (Sand King and Missouri Deposits), Callion and Golden Eagle.
Previous Update: Ora Banda Mining (ASX:OBM) Nearing Production at Davyhurst, Reports Significant Preparations At Ground Zero
Ora Banda’s aggressive progress till date has highlighted its commitment to advance the Davyhurst Project towards production. The Company had been actively engaged in mineral development in connection with the Davyhurst Gold Project as well as activities related to mineral exploration and assessment.
A major encouraging factor for OBM to re-start production at its Davyhurst Gold Project was the Definitive Feasibility Study (DFS). The DFS was underpinned by the pre-existing infrastructure, including a conventional CIP process plant. Notably, the DFS confirmed that OBM could employ a quick and low-capital path in order to attain significant gold production at Davyhurst.
Related: Ora Banda Reports 46% Increase In The Underground Mineral Resource At Riverina Project
Furthermore, the DFS highlighted that the project is likely to deliver robust cash flows and financial returns over a mine life of a 5.2-years. Subsequent to a payback period of 14 months, the project is estimated to generate average estimated pre-tax annual free cash flows of $33.6 million.
Earlier, OBM had scheduled to initiate mining operations by the end of October 2020, which, if commenced, should be well underway at the moment. Moreover, by the end of September quarter, OBM had obtained major approvals and permits and looked aptly positioned to initiate production at the Davyhurst.
Presently, gold production is targeted for the first quarter of 2021, and several production sources are anticipated to support a probable long-life mining operation at the Project, comprising of six deposits that shall provide for the mine plan of early five years.
Interesting read: Ora Banda Mining Advancing Towards Production At Davyhurst, Open Pit Mining to Start This Week
OBM looks forward to developing a firm foundation for long-term production at the Davyhurst project as the project is believed to see its best days, and its true potential is expected to be unearthed once the production begins.
The Davyhurst is said to offer deep values for OBM based on the strong foundation laid by the strong results from the competent drilling and modelling and some anticipated growth in profits with higher gold prices.
Did you read: Ora Banda Mining Announces underground Mineral Resource at Callion, Updates Total Mineral Resource to 2.13M ounces
OBM has carefully and consistently worked not only on the advanced targets but also on the whole length of the pipeline. Moreover, the Company is backed by previously completed capital raising that strengthens its position to fund the production activities at the project in the future as well.
At the end of September 2020 quarter, OBM reported a strong cash balance of $53.1 million with no debt and the same is expected to enable the Company to meet its needs of working capital as well as capital costs that shall be incurred in the course of recommencing production at Davyhurst.
Interesting Read: Ora Banda Mining Ready to Get the Boots on the Ground; Highlights Key Validations from DFS at Davyhurst Project
OBM share price quoted at $0.270 with a market capitalisation of $231.22 million.
Related: Ora Banda Finalises DFS at Davyhurst Project; Results Indicate Strong Economic Returns
