Ora Banda’s $45M Investment Targets Multi-Year Mine Life Extension Risks

Exploration Breakthrough at Depth

Ora Banda Mining Limited (ASX: OBM) has reported a significant breakthrough in its exploration drilling at the Riverina Gold Camp, located in Western Australia. The company’s deep diamond drilling campaign has confirmed the continuity of high-grade gold mineralisation extending more than 300 metres below the current mine plan, reaching depths over 1 kilometre. Notably, a high-grade shoot was intersected 600 metres below existing workings, with assay results including 2.9 metres at 36.0 g/t and 2.9 metres at 18.9 g/t gold, underscoring the potential for a substantial mine life extension.

These results are particularly compelling given the under-drilled nature of the Riverina system, where recent underground drilling has successfully extended mineralisation in the central 'shark bite' area, adding two additional mining levels. One of the standout intersections from this zone returned 1.5 metres at 62.3 g/t gold, reinforcing the high-grade tenor of the deposit.

Greenfields Potential at Little Gem

Beyond Riverina, Ora Banda has embarked on a grassroots exploration program at the Little Gem prospect, situated 2.5 kilometres south along strike. The initial drill hole at Little Gem intersected three parallel mineralised lodes with encouraging grades and widths, including 4.6 metres at 7.4 g/t gold. This discovery, supported by the identification of favourable host metasediment units consistent with the Riverina trend, hints at a new greenfields opportunity that could complement the existing resource base.

Follow-up drilling at Little Gem is underway, with four additional holes completed and assays pending. The company’s geologists are refining the exploration model to delineate the regional extent of this mineralisation, which remains open along strike and at depth.

Strategic Investment to Accelerate Growth

In response to these encouraging results, the Ora Banda Board has approved a substantial increase in expenditure for FY25, allocating an additional $16 million towards exploration and resource development drilling, and $29 million in capital expenditure to expand infrastructure. This raises the total planned exploration budget to $41 million and capital spend to $92 million for the year, including investments in camp expansions, mine development, and ancillary projects.

Managing Director Luke Creagh highlighted the transformative potential of the drilling results, stating that the company is poised for a multi-year mine life expansion and rapid value creation. The increased funding aims to fast-track drilling programs and infrastructure upgrades, positioning Ora Banda to capitalise on the extended mineralisation footprint.

Ongoing Drilling and Resource Upgrades

Ora Banda currently operates two surface and two underground diamond drill rigs at Riverina, with drilling approximately 50% complete. The company plans to intensify infill and extensional drilling ahead of anticipated Mineral Resource Estimate upgrades in the first half of FY26. The continuity and grade consistency demonstrated in the deepest holes provide a strong foundation for resource growth and conversion to Ore Reserves.

Meanwhile, exploration at the Ace prospect, part of the broader Riverina trend, has also yielded significant gold and copper intersections, further enhancing the district’s prospectivity.

Context and Outlook

Ora Banda’s Riverina Gold Camp has a history of high-grade production and exploration success, and these latest results reinforce its status as a key asset in the company’s portfolio. The combination of deep extensions, near-mine resource growth, and new greenfields discoveries like Little Gem suggest a robust pipeline of value-driving opportunities.

As the company accelerates its drilling and development activities, market participants will be watching closely for the upcoming resource updates and the operational implications of a potentially extended mine life.