Ora Banda Mining Ltd (ASX:OBM) is reviewing its Davyhurst gold operations due to production and cost performance issues.
The company recently completed stage one of the review, resulting in a 24-month plan to improve productivity, lower costs and build cash to invest back into exploration and next mine resource development.
The rollout of this plan will start immediately, with stage two to focus on resource development and sustainable mine production beyond 24 months.
Streamlined operations
OBM will focus its attention on the Missouri open pit for the next six months, with mining of the Riverina stage one open pit to stop in the final quarter of FY22, with a smaller Sand King stage one pre-strip deferred until November 2022.
Streamlining operations in this manner will enable the company to undertake a single mine operational focus.
The current Riverina and Missouri open-pit mining fleets will be rationalised to meet operational requirements at Missouri.
A recent A$20 million capital raise, in which OBM successfully completed the retail component of a four-for-13 non-renounceable pro-rata entitlement offer, ensures the company is well funded to support its process plant production and consider operational improvements.
Read: Ora Banda Mining completes A$20 million equity fund raising
Targeting new discoveries
Missouri’s ore will be supplemented with ore from existing surface stockpiles to target process plant throughput at nameplate capacity of 1.2 million tonnes per annum for the next two years.
The company is allowing for exploration and resource development drilling activities during this time.
The exploration spend will target new discoveries and follow up first-pass aircore results at the Sky prospect, the Greater Pacific target and the Sunraysia North trend.
Resource development activities will focus on ‘next mine’ targets, including Riverina Underground and the Iguana Deposit.