Ora Banda rationalisation reset under way

The first stage of the Ora Banda Mining Operational Reset Plan (ORP) has begun.

The ORP forms part of a step change for Ora Banda as it seeks to consolidate its operations, cut costs and focus on cash generation during the next 24 months.

The company owns the Davyhurst Gold Project in the highly productive Eastern Goldfields region of Western Australia.

Stage One is focused on two central pillars: firstly, achieving process plant stability at the 1.2 million tonne per annum nameplate capacity, and secondly, streamlining its open pit mining operations through the rationalisation of earth moving equipment (and associated labour requirements) by concentrating on mining at the Missouri open pit.

Stage Two will focus on resource development and sustainable mine production beyond the 24-month period.

To help guide Ora Banda’s change in direction, the explorer recently appointed experienced mining professional Simon Hillyard as its new general manager – operations for Davyhurst. Hillyard has worked at mining projects throughout Australia and overseas, including more recently at Saracen’s Thunderbox Mine and the Higginsville Gold Operations. Prior to this appointment, he was Group Open Pits Manager for Northern Star/Saracen Minerals.

On April 14, Ora Banda announced it would cease work at the Riverina open pit mine and focus on the Missouri open pit mine for the next six months. To that end:

  • Riverina mining operations ceased on May 3
  • Ongoing rehabilitation works are scheduled to be completed in the week commencing May 16
  • Mining fleet rationalisation is underway, with the aim of reducing the fleet by approximately 40 per cent. This will materially reduce the project’s cost base
  • Moving forward, the only equipment to be retained will be that required to execute the Missouri mining plan
  • The move has enabled OBM staffing and contractor labour requirements to be reduced, which will also deliver significant cost savings
  • The switch to single mine production has been a positive for Missouri as manning strength (which has been a challenge because of the general industry-wide shortage of skilled labour) has increased from as low as 80 per cent to over 100 per cent of baseline for the first time in the project life.

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