Early Drilling Reveals Complex Gold System, But True Scale Unclear

Exploration Breakthrough at Round Dam Trend

Ora Banda Mining Limited (ASX, OBM) has reported promising early results from its Phase 1 exploration drilling program at the Round Dam Trend in Western Australia. The program, which aims to drill 62,000 metres across more than 330 holes, has so far completed 50 holes totalling 9,500 metres. These initial results have unveiled a complex gold system with multiple subparallel lodes, a departure from historical drilling that focused narrowly on one or two lodes.

The Round Dam Trend, a north-south striking mineralised corridor extending approximately 17 kilometres, lies close to the significant Zuleika Shear Zone and is part of the broader Davyhurst Gold Project. Ora Banda’s exploration efforts are concentrated on a 7.5-kilometre section from Federal Flag in the north to Salmon Gums in the south, targeting both open pit and underground mining opportunities.

Significant High-Grade Intercepts

Among the standout drill results, hole FNRC25194 returned an impressive intercept of 25.0 metres at 7.7 grams per tonne (g/t) gold, including 8.0 metres at 20.6 g/t from 132 metres depth. This intercept is the deepest recorded north of Federal Flag, opening up new exploration potential at depth. Other notable intercepts include 2.0 metres at 32.4 g/t, 3.0 metres at 41.7 g/t, and 1.0 metre at 57.1 g/t, underscoring the high-grade nature of the mineralisation.

Ora Banda’s geology team has identified up to six subparallel gold lodes along the trend, a significant reinterpretation compared to historical drilling campaigns. This multi-lode system suggests a larger and more complex mineralised envelope than previously recognised, with potential to materially enhance the scale of the deposits.

Strategic Growth and Future Plans

The Round Dam drilling is a key component of Ora Banda’s $73 million exploration budget for FY26, which targets seven major mineralised trends across its tenure. The company’s strategy focuses on organic growth through expanding its mineral resource base and ore reserves. With the current drilling only 15% complete, there remains considerable scope for further discoveries along strike and at depth, as the gold mineralisation remains open-ended.

Managing Director Luke Creagh expressed optimism about the program’s early success, crediting the geology team for their reinterpretation of the mineralisation system. He highlighted the potential for both open pit and underground mining, emphasizing that the expanded drilling approach could significantly increase the scale of the deposits.

Geological Context and Exploration Potential

The Round Dam Trend is situated within a structurally complex region associated with the Zuleika Shear Zone, a major gold-bearing deformation corridor. The local geology features a layered volcanic sequence dominated by komatiitic basalt, interspersed with ultramafic lenses and bounded by magnetic volcaniclastics and sediments. Gold mineralisation is typically linked to ductile shear zones and quartz veining within these rock units.

Historical mining and exploration have focused on selective high-grade zones, leaving much of the underlying stratigraphy and structural architecture underexplored. Ora Banda’s systematic drilling and structural interpretation aim to refine the understanding of mineralised shoots and extend known mineralisation, particularly in underexplored areas between Walhalla and Salmon Gums.

Ongoing Work and Outlook

Metallurgical and geotechnical studies are underway to support future mining feasibility. The company is also progressing statutory approvals for mining activities. As the Phase 1 drilling program advances, market participants and investors will be watching closely for further results that could confirm the Round Dam Trend as a significant new gold discovery with both open pit and underground potential.