Ora Banda Mining lifts Riverina underground gold resource 46% to 139,000 ounces at higher grade

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Ora Banda Mining lifts Riverina underground gold resource 46% to 139,000 ounces at higher grade

Ora Banda Mining Ltd (ASX:OBM) (FRA:M6N) has increased the underground mineral resource by 46% to 139,000 ounces at the Riverina project, a key part of the Davyhurst Gold Project near Kalgoorlie in Western Australia.

The company has also substantially increased the grade of the underground resource to 5.9 g/t.

This resource of 728,000 tonnes at 5.9 g/t forms part of the overall Riverina resource, which has increased by 16% or 44,000 ounces to 3.7 million tonnes at 2.7 g/t for 322,000 ounces with the open pit resource unchanged at 183,000 ounces.

“Supplements substantial resource base”

Ora Banda managing director David Quinlivan said: “This underground resource upgrade for Riverina supplements the already substantial resource base that we have defined in this area.

“The mineralisation remains open along strike, down-dip and down-plunge and we remain keen to systematically test these areas.”

The company’s total mineral resource inventory now stands at 23.3 million tonnes at 2.7g/t for 2.05 million ounces.

Underpins underground mining study

The underground component of the Riverina resource is reported from the updated underground resource model and includes all blocks outside and below the same A$2,400 optimised pit shell but with a cut-off grade of 2.0 g/t, reflecting the increased cost of underground mining.

A mining study aimed at defining the portions of the resource that are economically viable by underground mining is in progress.

Riverina, which is 48 kilometres north of the Davyhurst processing plant, has an open pit ore reserve of 1.4 million tonnes at 1.8 g/t for 81,000 ounces.

Riverina plan showing mineralised lodes within the main mining area.

Exploration ongoing

Additional deep drilling is planned for Riverina Main lode aimed at upgrading the resource categories and to define extensions down plunge to the south.

The company considers initial assay results from the adjoining Riverina South exploration program encouraging and is progressing with environmental studies required for the mining approval process.

ASX shares were almost 6% higher this morning, reaching A$0.29.

Proactiveinvestors.co.uk

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