Davyhurst Gold Project Hits 2.11 Moz Resources and 236 Koz Reserves

Resource and Reserve Growth

Ora Banda Mining Limited (ASX, OBM) has released its Annual Mineral Resource and Ore Reserve Statement as of 1 July 2025, revealing significant growth at its flagship Davyhurst Gold Project in Western Australia. The total Mineral Resource estimate has increased to 26.8 million tonnes at 2.4 grams per tonne gold, equating to 2.11 million ounces; a 160,000-ounce increase despite mining depletion. This growth is underpinned by strong performances at the Riverina and Sand King underground mines, which saw resource increases of 25% and 14%, respectively.

Ore Reserves have also expanded markedly, rising 24% to 3.0 million tonnes at 2.4 grams per tonne for 236,000 ounces. Notably, the Sand King Underground Ore Reserve surged 54% to 829,000 tonnes at 3.2 g/t for 84,000 ounces, while Riverina Underground Ore Reserves increased 5% to 825,000 tonnes at 3.5 g/t for 92,000 ounces. These figures reflect the company’s successful conversion of mineral resources into economically mineable reserves, despite mining 108,000 ounces since June 2024.

Technical and Economic Foundations

The estimates are based on a gold price assumption of A$2,400 to A$2,500 per ounce, with cut-off grades calibrated to ensure focus on higher-margin ounces. The company’s detailed JORC-compliant technical data includes updated geological interpretations, mine designs, and mining parameters such as dilution and recovery rates. Both underground mines employ conventional longhole open stoping methods, supported by mechanised equipment and robust geotechnical assessments.

Processing is conducted at the centrally located Davyhurst facility, which operates at a nominal throughput of 1.2 million tonnes per annum using a conventional carbon-in-leach (CIL) circuit with gravity recovery. Metallurgical test work supports recoveries of approximately 87-90% across deposits, consistent with recent plant performance.

Looking Ahead, FY26 Exploration Program

Ora Banda plans an aggressive exploration and resource development drilling program in FY26, allocating $73 million to drill 329 kilometres; a substantial increase from 64 kilometres drilled in FY25. This program targets extensions and conversions at Riverina, Sand King, and other deposits including Little Gem, Waihi, and Round Dam, which are not yet incorporated in the current resource and reserve estimates.

Managing Director Luke Creagh highlighted the continuity and quality of the underground mines, noting that new drill platforms are being developed to facilitate significant extensional drilling. He emphasized that recent successful programs at Waihi, Round Dam, and Little Gem will be updated following meaningful follow-up drilling, underscoring the company’s commitment to resource growth and mine life extension.

Strategic Implications

The robust resource and reserve growth, combined with a well-funded exploration campaign, positions Ora Banda to enhance its production profile and extend mine life at Davyhurst. The company’s focus on higher-margin ounces and disciplined cost management, alongside positive cash flow projections at a gold price of A$3,300/oz, underpin a confident outlook. However, the exclusion of recent drilling results from some deposits and the inclusion of minor inferred material in reserves introduce elements of uncertainty that will require monitoring as FY26 drilling progresses.