Ora Banda Mining Ltd (ASX:OBM, OTC:ESGFF, FRA:M6N) has started underground mining at its Waihi gold mine near Davyhurst in Western Australia. This is the company's third underground mine development in three years while new drilling has highlighted further high-grade potential at the nearby Midnight prospect.
Waihi, around three kilometres west of Ora Banda’s Davyhurst processing plant, is expected to begin contributing high-grade ore from mid-2027, ahead of the planned commissioning of the company’s new 3.0 million tonnes per annum processing plant in early 2028.
Underground mining underway
Development has begun with establishment of a decline portal through the existing Waihi open pit, providing access to the Golden Pole lode and allowing underground drill platforms to be developed.
Ora Banda plans intensive underground drilling to further define and expand the mineralised system, which it considers large and under-drilled.
The company expects high-grade Golden Pole material to be preferentially treated through the existing Davyhurst mill as it transitions away from third-party processing and builds ore stockpiles ahead of commissioning of the new processing facility.
Golden Pole carries an Ore Reserve grade of 5.0 g/t gold, while recent shallow drilling targeting southern extensions returned results including 4.5 metres at 8.4 g/t gold, including 1.3 metres at 19.3 g/t; and 2.0 metres at 14.5 g/t, including 1.0 metre at 26.2 g/t.
Inspection of the first cut, Waihi Portal.
Midnight emerges as high-grade target
Exploration has also added a significant new opportunity at Midnight, around 500 metres south of the Waihi portal.
Recent drilling returned a standout 11.5 metres at 26.0 g/t gold, including 8.9 metres at 32.4 g/t, alongside 1.6 metres at 65.9 g/t including 1.0 metre at 104.0 g/t.
Ora Banda has initiated a seven-hole, 2,850-metre diamond drilling program at Midnight, with three holes totalling 1,479 metres completed so far.
Drilling has identified multiple parallel mineralised lodes and a major north-south shear interpreted as an important conduit for gold-bearing fluids, while visible gold has been observed across a 10-metre zone. An expanded drilling program is now being designed to follow up the results and test the system further at depth.
Long Section of Midnight Prospect to Golden Pole, looking West.
Managing director Luke Creagh said Waihi would deliver high-grade ore from mid-2027 ahead of the new Davyhurst plant, while underground drill platforms would allow the company to extend and infill the broader Waihi system.
“Once again, it’s a credit to the OBM team and business partners to rapidly identify an opportunity and turn it into a mine. We are excited to have commenced underground mining at Waihi, Ora Banda’s third underground mine and a key pillar of our DRIVE to 300 strategy. Importantly, Waihi will deliver high-grade ore from mid-2027 ahead of the scheduled delivery of our 3.0 Mtpa processing plant at Davyhurst.
“Furthermore, the newly identified Midnight Prospect adds to a growing list of high -grade underground targets at Waihi, with the establishment of underground drill platforms a key near-term objective to extend and infill what is considered a large and under-drilled system.”