Ora Banda Mining has faced process plant issues at the Davyhurst gold operation in Western Australia following its first gold pour at the mine in February.
The company stated that while gold ore to be mined in the 2021 financial year is in line with the 35,000-ounce guidance, gold production has been revised to 13,000 to 18,000 ounces for the same period.
Ora Banda has attributed its production woes to a high amount of viscous, low density oxide material within the gold ore from the Riverina open pit mine – part of the Davyhurst operation.
Company managing director David Qunlivan said the company is still confident towards meeting its estimates.
“Whilst there are always challenges when commissioning a mining project, we are encouraged by the refinements we are making to improve gold production towards the DFS (definitive feasibility study) estimates,” he said.
“The advancement of Missouri in the production schedule will go a long way to conquering ore viscosity issues encountered during commissioning.
“We are also seeing improvements in a number of other areas of the project, in particular at Riverina and Golden Eagle, which we believe will bode well as we accelerate our ramp-up.”
The company has expected to see a “more uniform ore blend” from its Golden Eagle underground and Missouri open pit mines – also part of the Davyhurst gold operation.
This is expected to increase gold production to DFS levels in the September quarter.
The Davyhurst operation entered production in February, which signified Ora Banda’s transition from developer to producer.
Mining at Davyhurst commenced in late October 2020.
The Davyhurst project is located 120 kilometres north-west of Kalgoorlie in the eastern Goldfields of Western Australia.