Ora Banda Mining, formerly Eastern Goldfields, is targeting a restart to gold production at the Davyhurst project in Western Australia in January next year.
Ora Banda aims to produce 418,000 ounces at Davyhurst over an initial five-year mine life.
This is part of Ora Banda’s mine reinvigoration of the Davyhurst project since it was placed on care and maintenance in 2018, two months ahead of the collapse of Eastern Goldfields.
The rebranded company has completed the project’s definitive feasibility study (DFS), confirming a rapid and low capital ($45 million) expenditure path towards operational restart.
This owes to the availability of Davyhurst’s existing infrastructure, including a 1.2 million tonnes a year processing plant, 172-person accommodation camp, extensive haul road network and process-water borefields, which are all under care and maintenance.
Ora Banda plans to commence mining in the fourth quarter of this year, subject to financing arrangements. The company expects to obtain all major approvals and permits on time.
It will start final phase development activities at Davyhurst immediately, focussing on the final piece of plant refurbishment and early works for mine development at the Riverina open pit and Golden Eagle underground mines.
“The completion of the DFS represents the culmination of an extensive 12-month work program focussed on a measured and value driven production restart at Davyhurst,” Ora Banda managing director David Quinlivan said.
“The DFS also marks an important step in the company’s evolution towards its ultimate objective of unlocking the significant value we believe is held in Ora Banda’s strategic and prospective landholding.”
The Davyhurst project hosts an ore reserve of 460,000 ounces, with six deposits within 50 kilometres of the plant. It is 120 kilometres north west of Kalgoorlie.