Ora Banda Mining (ASX:OBM) is "executing well," and is on track to produce over 150,000 ounces annually from its Sand King underground mine near its Davyhurst processing plant, in Western Australia, by 2026 and beyond, according to a Feb. 28 note by Euroz Hartleys.
The company said Friday, its first batch of development ore at the mine processed through the plant showed reconciled grades and recoveries above expectations.
Ora Banda added that grade control drilling at the deposit confirmed multiple mineralized lodes per level, and "blow-out" zones, suggesting higher gold endowment and improved pay-runs.
This "bodes well" for a low-cost development with multiple mining fronts, Euroz said, adding that good ground conditions and increasing mining rates are leading to higher-than-expected grades.
Euroz believes that "strong" gold prices, currently above AU$4,600 per ounce, continue to support the company's unhedged gold production.
The firm maintained OBM's buy rating and its price target of AU$1.20.
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