PriceSensitive

Ora Banda Mining (ASX:OBM) upgrades Golden Eagle Mineral Resource

Mining
ASX:OBM      MCAP $574.8M
09 April 2020 03:00 (AEST)

Ora Banda Mining (OBM) has updated the Mineral Resource at the Golden Eagle deposit at its Davyhurst Gold Project.

The company is now well-positioned to bring the underground mine back into production.

Golden Eagle is located only 3.2 kilometres from the Davyhurst processing plant and is one of the five priority mining targets within the project.

The upgraded Resources totals 393,000 tonnes at a higher grade of 3.9 g/t of gold for 49,000 ounces of gold. This reflects the potential of this deposit by underground mining methods.

The upgraded Golden Eagle underground Mineral Resource estimate is based on a gold price of $2400 per ounce of gold.

The Golden Eagle Underground Mineral Resource Estimate is reported above a 2.0 g/t of gold at lower cut off. Sourced from Ora Banda

“Defining this resource is an important step towards declaring a reserve position that leverages off the existing and significant capital investment of the recent past,” Managing Director David Quinlivan said.

“We are now well-positioned to bring this underground mine back into production as an integral part of our operational restart plan,” he added.

The previous resource estimate for Golden Eagle was based on lower grades, lower grade cut-off and for an open-pit mine. The company is now aiming for an underground mine.

Golden Eagle last saw activity between in 2018, when production was suspended.

The company’s total Mineral Resource, for all projects, is 23.5 million tonnes at 2.6 g/t of gold for two million ounces of contained gold.

On market close, Ora Banda is up 7.41 per cent and is selling shares for 14.5¢ each.

Related News