Ora Banda Mining has reported a staggering 964% increase in its Round Dam gold resource, boosting its total global mineral resources to 3.3 million ounces. This leap underscores the company’s aggressive organic growth strategy and ongoing exploration success.
- Round Dam Mineral Resource Estimate expands to 1.33 million ounces
- Total global resources increase 57% to 3.3 million ounces
- Resource fully open pit mineable with positive cash flow at A$5,000/oz gold price
- Ongoing drilling along 18km Round Dam trend with further updates planned
- Company advancing standalone ~3mtpa processing facility study at Davyhurst
A Tenfold Leap at Round Dam
Ora Banda Mining Limited (ASX:OBM) has unveiled a transformative update to its Round Dam gold project, with the Mineral Resource Estimate (MRE) soaring by 964% to 1.33 million ounces. This dramatic increase, from a previous 125,000 ounces, is a testament to the company’s focused organic growth strategy and the effectiveness of its $73 million exploration budget for FY26.
The expanded resource comprises 25.6 million tonnes at an average grade of 1.6 grams per tonne, including 7.2 million tonnes at 1.8 g/t in the Indicated category and 18.2 million tonnes at 1.6 g/t in the Inferred category. Importantly, all of this resource is considered suitable for open pit mining, calculated within cash-flow positive pit shells at a gold price assumption of A$5,000 per ounce and a cut-off grade of 0.3 g/t.
Strategic Implications for Ora Banda
This resource growth has lifted Ora Banda’s total global mineral resources by 57% to 3.3 million ounces, positioning the company strongly within the Australian gold sector. The Round Dam deposit remains open along strike and at depth, with ongoing drilling aimed at both extending the resource and upgrading the confidence category.
Managing Director Luke Creagh highlighted the significance of the results, attributing the success to the expertise of the exploration and resource development teams. He emphasised the potential for Round Dam to evolve into a substantial mining operation, supported by advancing study work on a standalone processing facility at Davyhurst with a capacity of approximately 3 million tonnes per annum.
Exploration and Development Outlook
Ora Banda’s exploration focus along the 18-kilometre Round Dam trend, which stretches from Waihi to Salmon Gums, is still in its early stages. The company has initially drilled a 7.5-kilometre section hosting several historical deposits and prospects, with plans for continued drilling to unlock further mineralisation potential.
The company’s commitment to exploration is underscored by its substantial FY26 budget, which includes plans for approximately 330 kilometres of drilling. This aggressive approach aims to sustain the momentum of resource growth and support future mine development.
Technical and Operational Considerations
The Round Dam resource estimate incorporates extensive drilling data, including Reverse Circulation and diamond core samples, analysed with rigorous quality control measures. The mineralisation is hosted within a complex geological setting of mafic to ultramafic volcanic rocks and sediments, with gold associated with quartz veining and sulphide alteration.
Preliminary metallurgical testing indicates excellent gold recoveries exceeding 95% using conventional carbon-in-leach processing, aligning well with the planned processing methods at Davyhurst. The resource is reported on a dry basis, with mining assumptions based on selective open pit methods and geotechnical assessments informing pit design.
Looking Ahead
With the Round Dam resource now firmly established as a cornerstone asset, Ora Banda is poised to deliver further value through continued exploration, resource upgrades, and advancing feasibility studies. The company’s strategy to develop a standalone processing facility could unlock operational efficiencies and enhance project economics.
Investors and analysts will be watching closely for the mid-2026 resource updates from other deposits within the Davyhurst Gold Project, which could further bolster the company’s resource base and growth prospects.
Bottom Line?
Ora Banda’s resource surge at Round Dam marks a pivotal step, but the path to production and value realisation will hinge on continued exploration success and development progress.
Questions in the middle?
- How will the expanded resource impact Ora Banda’s production timeline and capital expenditure plans?
- What are the key risks and uncertainties associated with advancing the standalone processing facility at Davyhurst?
- To what extent can ongoing drilling convert Inferred resources to Indicated or Measured categories?