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Ora Banda approves new underground mine at Davyhurst

11th July 2024

By: Creamer Media Reporter

     

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The board of Ora Banda Mining on Thursday announced the approval of the Sand King underground mine at Davyhurst, in the eastern Goldfields of Western Australia.

The mine, which will become the second to be developed by the ASX-listed miner in less than two years, is slated to hit a steady-state production of about 60 000 oz/y in the June 2025 quarter.

Contractors and long-lead items have been secured with the Sand King portal due to be cut in the September 2024 quarter.

Ora Banda will fund the A$39-million capital cost of Sand King with cash flows from its existing Riverina underground mine and existing cash.

When combined, production from the two mines will represent a step-change for the company as it grows towards a production outlook of 150 000 oz/y in the 2026 financial year and reduces its all-in sustaining costs to below A$1 890/oz in 2026.

Ora Banda has named this target growth plan the ‘Drive to 150’ and is a move to transition away from being a single-mine producer.

“Our ‘Drive to 150’ plan to target 150 000 oz in FY26 firmly places us on the pathway to becoming a midtier gold producer, and the most exciting part is that we are only just getting started on unlocking this highly prospective and under-explored tenement package,” said MD Luke Creagh.

The company has budgeted A$25-million for exploration in 2025 and A$40-million for exploration in 2026 to expand resources at Riverina and Sand King.

Edited by Creamer Media Reporter

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