Ora Banda Mining (ASX:OBM) has advanced part of its $375 million Davyhurst Expansion Project, 120km northwest of Kalgoorlie in Western Australia.
The board of directors approved the construction of a new standalone 3 million tonnes per annum (Mtpa) processing plant next to the existing 1.2 Mtpa plant. The new plant will use existing run-of-mine facilities.
The design includes a single-stage jaw crusher capable of passing 80% of crushed particles through a 140mm sieve or screen.
A combined semi-autogenous grinding and ball mill with a 6 megawatt drive, designed to achieve 80% passing 90 micrometers, is similarly planned.
A gravity and hybrid carbon-in-leach processing circuit that is designed for 91% plant recovery is also required.
Construction is scheduled to start in Q1 of FY 2027 and last until Q3 of FY 2028.
GR Engineering Services (ASX:GNG) is the preferred engineering, construction, and procurement contractor for the expansion.
GRES will receive $233 million in exchange for performing design, procurement, construction, installation, and commissioning work. An extra $142 million has been budgeted for unexpected owner’s costs and associated works.
The capital expenditure will be funded through a mix of existing cash, future cashflows, and debt finance.
“This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business,” Ora Banda CEO Luke Creagh says.
“We look forward to working with the Ora Banda team again on the successful and safe delivery of this important project,” GRES Managing Director Tony Patrizi adds.
Ora Banda Mining is a gold exploration and development company with assets in Western Australia’s Goldfields region.
Write to Richard Szabo at Mining.com.au
Images: Ora Banda Mining
