The new combined probable estimate is for four key deposits at Davyhurst - Riverina, Missouri and Sand King open pits and Golden Eagle underground.
There are maiden reserves for Riverina and Golden Eagle while the Missouri reserve is up 8% to 130,000 ounces and the Sand King reserve is 18% higher to 110,000 ounces.
The Riverina open pit reserve is 81,000 ounces and the Golden Eagle underground reserve is 16,000 ounces.
Ore reserves by deposit.
Shares have been up more than 12% to an intra-day high of A26.5 cents, approaching the 12-month high of A27 cents in August 2019.
Ora Banda managing director David Quinlivan said: “The company is pleased to update the market on the ore reserves for the Davyhurst Gold Project as we progress toward the completion of the DFS.”
The ore reserve has been calculated at a gold price of A$2,100 per ounce.
This update to 4.4 million tonnes at 2.4 g/t increases reserves by 60% compared to the 2019 ore reserve estimate of 2.8 million tonnes at 2.3 g/t for 210,000 ounces.
The difference is due to the inclusion of maiden reserves for Riverina and Golden Eagle and a 12% increase in the open pit reserve for Missouri and Sand King.
Davyhurst project deposit locations.
Conversion is 55%
Conversion of measured and indicated mineral resource to ore reserves across the four deposits is 55%, up from 43 % in the 2019 estimate.
Mining studies for Ora Banda’s Waihi and Callion open pit as well as an underground extension to Riverina, below the proposed open pit, are nearing completion.
Reserve updates for these prospects are planned to be included in a new ore reserve statement.
DFS on schedule
This will underpin the company’s definitive feasibility study (DFS) which is proceeding on-track and is scheduled for completion next month.
Quinlivan added: “The development of reserves for Waihi and Callion open pit and Riverina underground is continuing and we look forward to delivering these and the full results of a robust DFS in the near future.”