en.Wedoany.com Reported - Australian gold mining company Ora Banda Mining Ltd has announced a major expansion strategy, planning to double its gold production over the next three years. The company has approved the construction of a new 3 million tonnes per annum (Mtpa) processing plant at Davyhurst, while simultaneously advancing the development of the Waihi underground mine and significantly boosting its financing capacity.
Ora Banda released its "DRIVE to 300" vision on Monday, targeting long-term annual gold production of approximately 300,000 ounces. The company emphasized that this target remains a vision rather than formal production guidance, and there is currently no reasonable basis to assert that the target will be achieved.
Managing Director Luke Creagh stated: "DRIVE to 300 is an exciting next phase for Ora Banda, building on the previous successful delivery of DRIVE to 100 and DRIVE to 150. The anticipated production doubling is currently expected to be funded internally and has the potential to add substantial value, establishing Ora Banda as a long-term sustainable gold business."
The core of the strategy involves building a new, independent 3Mtpa processing plant adjacent to the existing Davyhurst plant. The existing plant has a nameplate capacity of 1.2Mtpa, with recent operational performance reaching 1.4Mtpa. Total capital expenditure for the expansion project is A$375 million, comprising a A$233 million EPC contract with GR Engineering Services, and A$142 million for associated infrastructure, owner's costs, and contingencies. Construction is scheduled to commence in FY27, with commissioning targeted for the third quarter of FY28. The new plant will utilize a combined gravity and carbon-in-leach (CIL) process flowsheet, with a design recovery rate of approximately 91%. The existing plant will continue to operate during construction, and if both plants run concurrently, combined processing capacity is set to increase to 4.2Mtpa by FY29.
The company's board also approved the development of the Waihi underground mine, which will be its third underground operation following Riverina and Sand King. Located approximately 4 kilometers from the Davyhurst processing plant, the mine is designed to provide rapid access to the high-grade Golden Pole lode during periods of constrained processing capacity. The mine's maiden ore reserve contains 825,000 tonnes grading 3.8g/t gold for a total of 101,000 ounces. Portal development is planned to begin in the first quarter of FY27, with first ore expected in the third quarter of FY27 and steady-state production targeted for the first quarter of FY28.
To support the expansion plan, Ora Banda has reached an amended agreement with ANZ and Commonwealth Bank, increasing its revolving credit facility from A$50 million to A$200 million. As of March 2026, the company held A$232 million in cash, with the undrawn revolving credit facility bringing the pro-forma liquidity position to approximately A$432 million. The company has also expanded its gold price protection program, adding new put option arrangements extending to mid-2028. Furthermore, Ora Banda has extended its ore sales agreement with Paddington Gold until October 2026, with approximately 570,000 tonnes of ore expected to be processed between March and October next year.
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