Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF, FRA:M6N) has approved a sweeping new expansion strategy aimed at doubling gold production over the next three years, unveiling plans for a new 3.0-million-tonnes-per-annum (Mtpa) processing plant at Davyhurst, development of the Waihi underground mine and a major increase in available funding capacity.
The company on Monday introduced its new “DRIVE to 300” aspiration, targeting a longer-term production profile of around 300,000 ounces per annum as it seeks to build on its earlier “DRIVE to 100” and “DRIVE to 150” growth phases.
Aspirational three-year outlook. A= Actual G= Guidance (FY26 low-end) 0 = Aspirational growth outlook.
Ora Banda stressed the target remains aspirational rather than formal production guidance and said it does not yet have reasonable grounds to state the objective can be achieved.
Managing director Luke Creagh said the strategy represented the next stage of the company’s transformation into a larger-scale WA gold producer.
“The DRIVE to 300 is the exciting next phase for Ora Banda, building on earlier success with the achievement of DRIVE to 100 and DRIVE to 150,” Creagh said.
“This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business.”
New 3Mtpa plant approved at Davyhurst
The centrepiece of the strategy is approval for a new standalone 3.0Mtpa processing plant adjacent to the existing Davyhurst mill, which currently has nameplate capacity of 1.2Mtpa but has recently operated at up to 1.4Mtpa.
Ora Banda has approved total capital expenditure of A$375 million for the expansion project, including a proposed A$233 million EPC contract with GR Engineering Services and a further A$142 million for supporting infrastructure, owner’s costs and contingency.
Construction is scheduled to begin in FY27, with commissioning targeted for the third quarter of FY28.
Indicative timeline of key events.
The company said the new plant would use a conventional gravity and hybrid carbon-in-leach (CIL) flowsheet with designed recoveries of about 91%.
Importantly, Ora Banda intends to continue operating the existing Davyhurst plant during construction and potentially afterwards, depending on ore availability and economics.
If both mills operate concurrently, combined nameplate processing capacity would rise to 4.2Mtpa by FY29.
The company said the larger-scale operation could deliver lower unit costs through improved efficiencies and reduced reliance on third-party ore processing.
Indicative 3D model of the new 3.0 Mtpa mill.
Waihi underground moves into development
Ora Banda’s board has also approved development of the Waihi underground mine, which will become the company’s third underground operation after Riverina and Sand King.
The underground project sits around 4 kilometres from the Davyhurst mill and is designed to fast-track access to the higher-grade Golden Pole lode while the company remains processing constrained.
The approval follows Ora Banda’s maiden Waihi underground Ore Reserve announced separately on Monday, containing 825,000 tonnes at 3.8 g/t gold for 101,000 ounces, including 41,000 ounces within the Golden Pole reserve.
Ore Reserve Estimate for Waihi Underground.
Portal development is scheduled to begin in the first quarter of FY27, with first ore expected in Q3 FY27 and steady-state production targeted by Q1 FY28.
Ora Banda said Waihi underground would also create drill platforms for deeper extensional drilling, similar to previous underground exploration success at Riverina and Sand King.
Waihi Underground – indicative mine design.
Balance sheet expanded to fund growth phase
To support the expansion push, Ora Banda has increased its revolving credit facility from A$50 million to A$200 million through an amended agreement with ANZ and Commonwealth Bank.
The company ended March 2026 with A$232 million in cash, giving it a pro-forma liquidity position of roughly A$432 million including the undrawn revolver.
Ora Banda also expanded its gold price protection program during the expected high-capex construction phase, including new put option arrangements extending through to mid-2028.
Separately, the company confirmed it had extended its ore sale agreement with Paddington Gold through to October 2026, with around 570,000 tonnes of ore expected to be processed under the arrangement between March and October next year.