Ora Banda Mining Ltd (ASX:OBM) has made tracks on stage one of its operational reset plan (ORP), which covers the Davyhurst gold play in Western Australia’s Eastern Goldfields.
The ORP is described as an important step-change for Ora Banda as it works to consolidate its operations, cut costs and focus on cash generation over the next two years.
Ora Banda’s stage one ORP is focused on two central pillars:
- First, achieving process plant stability at its 1.2million-tonnes-per-annum nameplate capacity; and
- Second, streamlining its open-pit mining operations by concentrating on mining at the Missouri open pit.
Stage two of the ORP will focus on resource development and sustainable mine production beyond the two-year period.
Broadening expertise
To help guide Ora Banda’s change in direction, the company recently appointed experienced mining professional Simon Hillyard as its new general manager, overseeing operations for the Davyhurst project.
Hillyard has worked at mining projects throughout Australia and overseas, including more recently at Saracen Minerals Holdings Limited's Thunderbox Mine and the Higginsville Gold Operations.
Prior to his appointment, Hillyard was group open pits manager for Northern Star/Saracen Minerals.
Speaking to the appointment, Ora Banda interim CEO Andrew Czerw said: “We are obviously delighted to have Simon on board as part of our team and are most pleased with the speed in which we have been able to put stage one of our operational reset plan into effect.
“In addition, we have seen an overwhelmingly positive response from the OBM team to the ORP, and we look forward to their ongoing support as we work through the reset.”
Key strategies
On April 14, Ora Banda announced it would cease work at the Riverina open-pit mine and focus on the Missouri open-pit mine for the next six months.
To that end:
- Riverina mining operations ceased on May 3;
- Ongoing rehabilitation works are scheduled from next week;
- Mining fleet rationalisation is underway, with the aim of reducing the fleet by roughly 40% in a bid to materially reduce the project’s cost base; and
- Ora Banda will only keep the equipment required to execute the Missouri mining plan.
The move has reduced OBM’s staffing and contractor labour requirements, which is also expected deliver substantial savings.
In addition, the switch to single mine production has been a positive for Missouri, as manning strength (a challenge because of the industry-wide shortage of skilled labour) has increased from as low as 80% to more than 100% of baseline for the first time in the project life.
A new way forward
Over April, the Davyhurst processing plant treated 92,784 tonnes at 1.82 g/t for 5,427 gold ounces (from which 5,019 ounces were recovered).
This marks a 5% throughput improvement on the previous month and Ora Banda says the uptake reflects concerted efforts in this area of the business.
In the meantime, the company is hard at work improving its processing plant’s operational and preventive maintenance practices. It also said it’s out to resolve the plant’s operational discipline issues.
Czerw explained: “These changes are all about simplifying Davyhurst so it has less working parts, a more affordable cost base and to give ourselves the ability to properly resource those parts of the business that need it most.
“We’re confident that in the months ahead, these changes will move Ora Banda into a much stronger, cash accretive position.”