Ora Banda Reports 75% Rise in Mineral Resources and 159% Increase in Ore Reserves at Davyhurst Gold Project

Resource and Reserve Surge at Davyhurst

Ora Banda Mining (ASX:OBM) has delivered a seismic upgrade to its Davyhurst Gold Project inventory, reporting a 75% jump in Mineral Resources to 3.69 million ounces and a 159% leap in Ore Reserves to 610,000 ounces as at 1 April 2026. This marks a significant step-change in the company’s production base, underpinning longer mine life and greater development flexibility.

The standout contributor was the Round Dam Open Pit, where Mineral Resources skyrocketed 964% to 1.33 million ounces, up from a mere 125,000 ounces just nine months earlier. Complementing this, a maiden Ore Reserve of 223,000 ounces was declared at Round Dam, signalling the potential for rapid discovery-to-reserve conversion across the portfolio.

Growth Across Multiple Deposits Supported by Heavy Drilling

Other deposits also showed robust growth: Waihi’s combined open pit and underground Mineral Resources increased 114% to 482,000 ounces, while Riverina Underground Mineral Resources rose 18% to 689,000 ounces. Sand King Underground Mineral Resources saw a more modest 4% increase but importantly, its Ore Reserves surged 49% to 125,000 ounces, bolstered by resource conversion drilling and positive grade reconciliation.

This inventory expansion was backed by an aggressive exploration campaign, with Ora Banda investing approximately $75 million in FY26, drilling over 310,000 metres of reverse circulation and diamond core. The company plans to maintain this momentum with a further 340,000 metres of drilling targeted for FY27, focusing on extensions at Round Dam, Little Gem, and Sand King.

Technical Rigor and Economic Validation

Ora Banda’s resource and reserve estimates are supported by detailed geological modeling, geotechnical assessments, and metallurgical test work. The Ore Reserve estimates incorporate practical mining parameters, including dilution and recovery factors, with cut-off grades aligned to gold prices ranging from A$2,400 to A$5,000 per ounce depending on the deposit and mining method.

Economic assessments underpinning the Ore Reserves confirm positive net cash flows at a gold price of A$3,600 per ounce, with unit mining costs estimated between A$149 and A$204 per tonne for underground operations. Open pit mining costs for Waihi and Round Dam are based on recent tendered contracts and historical performance, reflecting a mature understanding of project economics.

Environmental and Regulatory Progress

Environmental approvals for key operations such as Riverina Underground, Sand King Underground, and Waihi Open Pit are in place, with ongoing baseline studies and regulatory processes advancing for the Round Dam Project. The company is engaging with stakeholders and traditional owners, particularly concerning lithium-bearing pegmatites associated with Round Dam, though no material impediments have been identified to date.

What’s Next for Ora Banda?

Managing Director Luke Creagh emphasised the company’s commitment to exploration-led growth, highlighting the rapid resource expansion as a testament to the geological team’s expertise and the company’s strategic drilling investment. With a maiden Mineral Resource estimate for Little Gem expected in the first half of FY27, Ora Banda is poised to further bolster its resource base.

However, the scale of recent growth raises questions about the sustainability of such rapid expansion and the operational execution required to translate resources into consistent production. The pending environmental approvals and stakeholder negotiations at Round Dam remain key milestones to watch as they will influence project timelines and development pace.