en.Wedoany.com Reported - Australian mining company Ora Banda Limited (ASX: OBM) has updated the mineral resource estimate and ore reserves for its Davyhurst Gold Project, located in the Eastern Goldfields of Western Australia. Following this annual update, the project's total mineral resources increased by 75% to 56.5 million tonnes at a grade of 2.0 g/t gold, containing 3.69 million ounces of gold.
Ore reserves grew by 159% to 8.4 million tonnes at a grade of 2.3 g/t gold, containing 610,000 ounces of gold. This figure has been adjusted for mining depletion of 80,000 ounces as of April 1, 2026. The updated reserve base encompasses five primary mining sources at Davyhurst: Waihi Underground, Waihi Open Pit, Round Dam Open Pit, Sand King Underground, and Riverina Underground, as well as low-grade in-situ material and stockpiles.
Ora Banda stated that this update significantly enhances the scale, diversity, and development flexibility of the Davyhurst project. The company operates a processing plant with an annual capacity of 1.2 million tonnes at the site and holds extensive land holdings in the Eastern Goldfields. The Round Dam open pit performed particularly well, with its resources increasing by 964% to 25.4 million tonnes at a grade of 1.6 g/t gold, containing 1.33 million ounces of gold. Previously holding 125,000 ounces of resources, this update also supported its first ore reserve of 223,000 ounces.
Ora Banda Managing Director Luke Creagh stated that this represents a step-change achievement for the company, with drilling investment increasing mineral resources by 75% and ore reserves by 159% in less than 12 months, strengthening the Davyhurst production platform. The company's ability to discover new deposits, develop them into mines, and continue to grow provides a clear pathway to achieving its goal of becoming Australia's next gold producer with an annual output exceeding 300,000 ounces.
In addition to Round Dam, the Waihi mining area also achieved scale growth. Its open pit and underground resources increased by 114% to 7.3 million tonnes at a grade of 2.1 g/t, containing 482,000 ounces of gold. The Central Davyhurst region currently holds ore reserves of 4.7 million tonnes at a grade of 2.2 g/t, containing 332,000 ounces of gold. This includes the first reserve for Waihi Underground of 825,000 tonnes at a grade of 3.8 g/t, containing 101,000 ounces of gold, as well as the Round Dam reserves. Ora Banda stated that the Waihi underground reserves reflect further drilling results along the dip and strike of the Golden Pole mineralization.
The underground reserve base was expanded at the Sand King and Riverina mining areas. Sand King Underground reserves increased by 49% to 1.24 million tonnes at a grade of 3.2 g/t, containing 125,000 ounces of gold, driven by resource conversion drilling, positive grade verification, and improved geological confidence. Riverina Underground reserves increased to 844,000 tonnes at a grade of 3.7 g/t, containing 100,000 ounces of gold. Riverina's underground resources grew by 18% to 8.7 million tonnes at a grade of 2.5 g/t, containing 689,000 ounces of gold; Sand King's underground resources increased by 4% to 3.9 million tonnes at a grade of 2.9 g/t, containing 363,000 ounces of gold.
Ora Banda stated that the updated resources and reserves demonstrate the project's potential for rapid conversion from discovery to resources to reserves within the broader Davyhurst tenement package. The company invested approximately A$75 million in drilling during the 2026 financial year, completing over 310,000 meters of reverse circulation and diamond core drilling. The 2027 financial year plans an additional 340,000 meters of drilling, excluding grade control, with focus areas including extensions of known mineralization at Round Dam, Little Gem, and Sand King. The company is also progressing towards the first mineral resource estimate for Little Gem in the first half of the 2027 financial year.
The Davyhurst project is located in the Eastern Goldfields of Western Australia, approximately 125 kilometers from Kalgoorlie. The project covers 1,135 square kilometers and boasts over 140 kilometers of combined mineralized strike along the Zuleika Shear Zone and Ida Fault. Established infrastructure includes the Davyhurst processing facility with an annual capacity of 1.2 million tonnes, haul roads, workshops, two villages, power infrastructure, and tailings storage capacity.
