Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF) has delivered a strong update on its Davyhurst Gold Project, reporting increases across both mineral resources and ore reserves while also finalising agreements with Wesfarmers’ Davyston Exploration Pty Ltd and repaying its $4 million Hawke’s Point loan.
Resources and reserves grow despite depletion
The company’s annual mineral resource and ore reserve statement shows total mineral resources at Davyhurst rising to 26.8 million tonnes (Mt) at 2.4 grams per tonne (g/t) for 2.11 million ounces, representing a net gain of 160,000 ounces after mining 108,000 ounces during the 2025 financial year.
Key contributors included:
- Riverina Underground, where resources climbed 25% to 7.0 Mt at 2.6 g/t for 586,000 ounces, up from 468,000 ounces despite producing 92,000 ounces.
- Sand King Underground, where resources lifted 14% to 3.9 Mt at 2.8 g/t for 348,000 ounces, following depletion of 17,000 ounces.
Change in Riverina ORE ounces.
Total ore reserves rose 24% to 3.0 Mt at 2.4 g/t for 236,000 ounces. Underground reserves also grew 24% to 1.66 Mt at 3.3 g/t for 176,000 ounces, with Sand King increasing 54% to 84,000 ounces and Riverina edging 5% higher to 92,000 ounces.
ORE ounce growth & drilling.
Ora Banda emphasised that these figures exclude recent drilling success at Little Gem, Waihi, Round Dam and Sand King step-outs, with a further update planned in the second half of FY26. The company has earmarked $73 million for a 329-kilometre exploration and resource development program in FY26, up sharply from 64 kilometres drilled in FY25.
Managing director Luke Creagh said the results demonstrated “the continuity and quality” of the underground mines, both of which remain open at depth and laterally.
“Riverina and Sand King underground drill platforms are currently being developed, which puts us in a position to drill significant extensional programs to extend and convert mineralisation at both mines in FY26,” he said.
“The most exciting element to this Resource and Reserve growth story is that recent successful programs at Waihi, Round Dam and Little Gem have not been included in this announcement.”
Farm-in agreements executed and loan cleared
Alongside the resource update, Ora Banda confirmed it has executed full agreements with Wesfarmers’ Davyston Exploration Pty Ltd covering non-gold mineral rights at Davyhurst. This includes a farm-in and joint venture agreement, a minerals sharing agreement and a royalty deed for a 2% non-gold royalty payable to Ora Banda.
As previously approved by shareholders, Ora Banda has on-sold 1.5% of this royalty to Hawke’s Point. The $4 million consideration for that sale was offset against the $4 million loan Ora Banda owed Hawke’s Point, extinguishing the debt in full.
Extensive asset base
Ora Banda controls a 1,135-square-kilometre tenement package covering more than 140 kilometres of mineralised strike in Western Australia’s Eastern Goldfields. Gold ore is processed through its 1.2-million-tonne-per-annum Davyhurst plant, supported by established power, accommodation and transport infrastructure.
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Deposit locations
With Riverina and Sand King underground mines delivering growth and new drill programs set to ramp up, Ora Banda enters FY26 with a stronger reserve base, a cleaner balance sheet, and clear momentum for further resource expansion.