Execution and Approvals Key as Ora Banda Upsizes Capital for Growth Plan

Resource and Reserve Expansion Extends Mine Life

Ora Banda Mining Limited (ASX:OBM) has delivered a major boost to its gold inventory, with total Mineral Resources swelling to 54.8 million tonnes at 2.0 g/t for 3.57 million ounces as of 1 April 2026. This represents a 1.46 million ounce increase since 1 July 2025, driven chiefly by a staggering 964% jump at Round Dam to 25.6 million tonnes at 1.6 g/t for 1.33 million ounces. Meanwhile, Waihi's combined open pit and underground resources have more than doubled to 7.3 million tonnes at 2.1 g/t for 482,000 ounces.

The Ore Reserve tally also surged 136% to 7.8 million tonnes at 2.2 g/t for 555,000 ounces. Key highlights include maiden Ore Reserves at Waihi Underground of 825,000 tonnes at 3.8 g/t for 101,000 ounces, including a high-grade Golden Pole lode, and maiden Round Dam Ore Reserves of 3.7 million tonnes at 1.9 g/t for 223,000 ounces. These figures underpin an extended mine life and support positive net cash flow outcomes under current economic assumptions.

The Ore Reserves are underpinned by updated economic models using gold price assumptions ranging from A$2,400 to A$5,000 per ounce depending on project and grade. Mining methods remain conventional, with selective open pit mining at Round Dam and Waihi, and longhole open stoping underground at Waihi, Riverina, and Sand King. Processing is conducted via a standard carbon-in-leach (CIL) plant with gravity recovery, delivering metallurgical recoveries between 87% and 95% depending on ore type.

DRIVE to 300 Growth Plan and Capital Approvals

In tandem with the resource updates, Ora Banda has approved a significant capital expansion under its DRIVE to 300 plan, aiming to double gold production over three years. The Board has greenlit a new standalone 3.0 Mtpa processing plant at Davyhurst, budgeted at A$375 million. GR Engineering Services has been selected as preferred EPC contractor for a contract valued at A$233 million, with construction set to commence early FY27 and commissioning targeted for Q3 FY28.

Complementing the mill expansion is the approved development of the Waihi Underground mine, Ora Banda’s third underground operation, with a capital cost of A$90 million. Portal establishment is scheduled for Q2 FY27, with steady-state production expected by Q1 FY28. The maiden Ore Reserve at Waihi Underground, including the Golden Pole lode, provides a high-grade feedstock to mitigate milling constraints during the expansion phase.

Financially, Ora Banda has secured an upsized revolving credit facility of A$200 million, replacing its previous A$50 million facility, enhancing liquidity alongside a strong cash balance of A$232 million as of 31 March 2026. The company has also implemented a gold price protection program with AUD put and call options covering over 180,000 ounces, aiming to hedge against price volatility during the capital expenditure ramp-up.

Operational and Infrastructure Context

The Davyhurst Gold Project remains the operational hub, processing ore from multiple deposits including Waihi, Round Dam, Riverina, and Sand King. The existing 1.2 Mtpa plant has recently operated up to 1.4 Mtpa, but the new mill will substantially increase capacity to 4.2 Mtpa combined, reducing unit costs and mitigating single asset risk.

Waihi Underground’s development will unlock high-grade ounces close to the processing plant, with a focus on the Golden Pole lode. The underground mine design employs conventional longhole open stoping with mechanised equipment, and metallurgical recoveries are expected around 90%. The project benefits from existing infrastructure including haul roads, borefields, and accommodation villages, with environmental approvals in place for Waihi open pit and progressing for Round Dam.

Exploration and Future Catalysts

Ongoing drilling at Round Dam and Waihi continues to refine the resource base, with results pending from recent campaigns expected to feed into the next resource update scheduled for Q4 FY26. A maiden resource for the Little Gem prospect is anticipated in H1 FY27, potentially adding further ounces to the Davyhurst portfolio.

These developments come on the back of recent milestones including record quarterly production and cash flow reported in April 2026, which saw a 21% increase in gold output and a tenfold resource increase at Round Dam Round Dam Resource Jumps Tenfold. Meanwhile, drilling at Golden Pole has confirmed its high-grade underground potential ahead of the resource update Golden Pole’s High-Grade Mining Potential, supporting the Waihi Underground development.