PERTH (miningweekly.com) – Gold miner Ora Banda Mining has started Stage 1 of its operational reset plan (ORP) as part of its plans to consolidate operations, cut costs and focus on cash generation over the next two years.

The Stage 1 ORP is focused on achieving process plant stability at the 1.2-million-tonne-a-year Davyhurst gold project, in Western Australia, and to streamline its openpit mining operations through rationalising earthmoving equipment by concentrating on mining at the Missouri openpit.

Stage 2 of the ORP will focus on resource development and sustainable mine production beyond the 24-month period of Stage 1.

Ora Banda in April this year announced that it would cease work at the Riverina openpit mine in order to focus on the Missouri deposit for the next six months. Operations at Riverina ceased on May 3, and ongoing rehabilitation work at the site is scheduled to be completed next week.

Ora Banda told shareholders on Tuesday that the move had allowed the company to reduce staffing and contractor labour requirements, which was expected to deliver significant cost savings.

Furthermore, the switch to single mine production had been positive for Missouri, as manning strength, which Ora Banda noted had been a challenge given the current labour shortages in Western Australia, had increased from as low as 80% to over 100% of baseline for the first time in the project’s life.

Meanwhile, effort is also continuing to increase the crushing circuit performance at the processing plant, through improved operational and preventative maintenance, while also reducing plant downtime through improved operational and preventative maintenance practices.

“These changes are all about simplifying Davyhurst so it has less working parts, a more affordable cost base and to give ourselves the ability to properly resource those parts of the business that need it most,” said interim CEO Andrew Czerw.

“We are confident that in the months ahead, these changes will move Ora Banda into a much stronger, cash accretive position.”

In the month of April, the Davyhurst process plant treated 92 784 t of ore for 5 427 oz of gold. This was a 5% throughput improvement on the previous month.