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Ora Banda Mining’s positive DFS for Davyhurst Gold Project “provides solid case to re-start operations”

Ora Banda Mining Ltds (ASX:OBM) has received a positive definitive feasibility study (DFS) for the Davyhurst Gold Project in WA which managing director David Quinlivan told Proactive provided a solid case to re-start operations with a 5-year mine life.

The DFS released today confirms strong returns for a technically robust Davyhurst re-start.

Strong financial returns[hhmc]
As the culmination of an extensive 12-month work program to pursue a rapid and low-capex path to production, the DFS has confirmed that the project will generate strong cash flows and financial returns.

This will come from six distinct mining operations – Riverina, Missouri, Sand King, Waihi and Callion open pits and the Golden Eagle underground.

These six deposits that will feed the Davyhurt Processing Plant (within 50 kilometres of the plant) have estimated ore reserves of 6.1 million tonnes of ore grading 2.4 g/t for 460,000 ounces of contained gold over five years of mine life.

Opportunity to expand resource..

Ora Banda Mining Ltds (ASX:OBM) has received a positive definitive feasibility study (DFS) for the Davyhurst Gold Project in WA which managing director David Quinlivan told Proactive provided a solid case to re-start operations with a 5-year mine life.

The DFS released today confirms strong returns for a technically robust Davyhurst re-start.

Strong financial returns


As the culmination of an extensive 12-month work program to pursue a rapid and low-capex path to production, the DFS has confirmed that the project will generate strong cash flows and financial returns.

This will come from six distinct mining operations – Riverina, Missouri, Sand King, Waihi and Callion open pits and the Golden Eagle underground.

These six deposits that will feed the Davyhurt Processing Plant (within 50 kilometres of the plant) have estimated ore reserves of 6.1 million tonnes of ore grading 2.4 g/t for 460,000 ounces of contained gold over five years of mine life.

Opportunity to expand resource


Quinlivan said the company completed the DFS at a “very conservative” gold price of A$2,100 per ounce, while the price was approaching A$2,600.

“There is a 22 to 23% margin in the price we have used from where our benchmark case was.

“A lot of the higher grade areas from underground mines werent included in this first round so there is quite a lot of opportunity to expand this resource base and the reserve base over the course of the next five years.”

Pre production capital costs

“This is a low capital re-start – if someone was to build a new mining centre they would be looking at something north of $200 million to get it running by the time you put in access roads, airstrips, camp, offices and water supply bores.

“Our capital cost to get the whole thing restarted is quite small and modest in comparison to what it would be if you had to put a brand-new operation in.”

Economic returns


Underpinned by pre-existing infrastructure, including a conventional CIP process plant, the DFS estimates for the project show a pre-tax, free cashflow of A$175 million over a 5.2-year mine life using a A$2,100/ounce gold price.

Life of mine average annual gold production is 81,000 ounces with low C1 cost of A$1,427/ounce and all-in sustaining costs of A$1,566/ounce.

This includes an average estimated pre-tax annual free cash flows of A$33.6 million (A$68.8 million at A$2,550/ounce), following a 7 to 14 month payback period further leveraged by carried forward tax-losses of A$258 million.

Unlocking “significant value”


Quinlivan said the DFS confirmed that the existing infrastructure would enable Ora Banda to pursue a rapid path to production, with the first gold pour targeted for January 2021.

“The DFS also marks an important step in the companys evolution towards its ultimate objective of unlocking the significant value we believe is held in Ora Bandas strategic and prospective landholding.”

Funding


Quinlivan said funding was the companys next near-time priority, the board having approved the immediate commencement of the first phase of development activities, which would be funded by current cash reserves.

The company will consider financing the remaining pRead More – Source

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Australia

Alkane Resources meets upgraded FY2020 guidance for Tomingley Gold Operations

Alkane Resources Limited (ASX:ALK) has met the FY2020 gold production guidance of between 30,000 ounces to 35,000 ounces.at its Tomingley Gold Operations in Central West New South Wales.

The operations produced 33,507 ounces of gold for the 12 months to June 30, 2020, with preliminary all in sustaining costs (AISC) of $1357 per ounce produced, which also fell within cost guidance of $1,250 to $1,400 per ounce.

Guidance for the 2020 financial year was upgraded following the September 2019 quarter.

“Great potential”[hhmc]
Alkane managing director Nic Earner said: “The team at Tomingley Gold Operations continues to perform very well, consistently meeting or exceeding guidance.

“With an updated mine plan soon to be released and the great potential being shown very close to the mine, through our exploration at Roswell and San Antonio, we remain buoyant about the longer-term prospects at Tomingley.

“The board and management acknowledge and thank the team at Tomingley for their strong an..

Alkane Resources Limited (ASX:ALK) has met the FY2020 gold production guidance of between 30,000 ounces to 35,000 ounces.at its Tomingley Gold Operations in Central West New South Wales.

The operations produced 33,507 ounces of gold for the 12 months to June 30, 2020, with preliminary all in sustaining costs (AISC) of $1357 per ounce produced, which also fell within cost guidance of $1,250 to $1,400 per ounce.

Guidance for the 2020 financial year was upgraded following the September 2019 quarter.

“Great potential”


Alkane managing director Nic Earner said: “The team at Tomingley Gold Operations continues to perform very well, consistently meeting or exceeding guidance.

“With an updated mine plan soon to be released and the great potential being shown very close to the mine, through our exploration at Roswell and San Antonio, we remain buoyant about the longer-term prospects at Tomingley.

“The board and management acknowledge and thank the team at Tomingley for their strong and continued safety and production performance.”

The updated Tomingley Gold Operations mine plan is undergoing final review and approval and will be released along with FY2021 guidance.

Strong financial position


The strong 12-month performance at Tomingley has coincided with a 25% appreRead More – Source

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Australia

eSense-Lab to break into US market with appointment of distributor for future terpenes-based sanitiser products

eSense-Lab Ltd (ASX:ESE) has initiated its expansion into the worlds largest consumer base for terpenes-based products globally with the appointment of US-based Blue Science Solutions LLC.

The new distributor will provide a cost-effective entry point to the US market via an established supply chain network, plus a viable solution logistically for entry of eSenses terpenes-based products into the worlds largest consumer networks.

Blue Science, an approved supplier to the IBM Rapid Supplier Connect initiative, will receive an arms length standard commission on all sales.

Sales commitments[hhmc]
Under the exclusive sales agency agreement, Blue Science has committed to sales of A$3 million in the first 12 months of the deal to maintain exclusivity.

Assuming the agreement is renewed after the initial 12-month term, Blue Science will source sales for a combined total of A$10 million of products through its network over the first five years of the deal.

If these minimum sales targets are..

eSense-Lab Ltd (ASX:ESE) has initiated its expansion into the worlds largest consumer base for terpenes-based products globally with the appointment of US-based Blue Science Solutions LLC.

The new distributor will provide a cost-effective entry point to the US market via an established supply chain network, plus a viable solution logistically for entry of eSenses terpenes-based products into the worlds largest consumer networks.

Blue Science, an approved supplier to the IBM Rapid Supplier Connect initiative, will receive an arms length standard commission on all sales.

Sales commitments


Under the exclusive sales agency agreement, Blue Science has committed to sales of A$3 million in the first 12 months of the deal to maintain exclusivity.

Assuming the agreement is renewed after the initial 12-month term, Blue Science will source sales for a combined total of A$10 million of products through its network over the first five years of the deal.

If these minimum sales targets are not achieved, the agreement will automatically become non-exclusive.

Blue Science said it was aware that the minimum sales targets were “potentially ambitious targets” but added that Blue Science had generated more than US$2.5 million in revenue in the last financial year and had experienced increased demand in recent months as a result of a global shortage in sanitiser products.

CDIs to be issued


In exchange, eSense will issue 10 million CDIs in the company to Blue Science or its nominees.

The CDIs, which represent around 2% of the issued and outstanding CDIs, will have a deemed issue price of 1 cent each and will be issued from eSenses existing placement capacity.

Blue Science is an established company that uses only natural ingredients to deliver non-toxic, cleaning and disinfecting solutions that has applications across a variety of industries.

It was formed in 2013 by Slade Smith, a registered professional industrial hygienist and an Institute of Inspection, Cleaning and Restoration Certification Master Restorer-accredited scientist with two decades of research and practical experience.

Part of IBM program


As an approved supplier to the IBM Rapid Supplier Connect initiative, Blue Science intends to introduce future products for sale through its supply chains.

This IBM network is designed to provide support for supplier identity using blockchain technology and aims to help buyers in the US and Canadian healthcare and government sectors find supplies and services in an unconventional marketplace with greater efficiency.

In order to be accepted into the IBM network, Blue Science needed to demonstrate to IBM that it recorded revenue in its prior financial year of over US$2.5 million.

Certain products targeted


The agreement covers all terpenes-based products to be developed by eSense, both in conjunction with Blue Science and with other third parties, in the cleaning and disinfecting solutions market.

It is still finalising product formulations which are expected to take two to three months to complete. It expects its firstRead More – Source

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Australia

88 Energy set to move XCD offer to compulsory acquisition

88 Energy Ltd (LON:88E) told investors its offer for XCD Energy has now reached a level that guarantees it will reach the minimum threshold required for compulsory acquisition.

The AIM-quoted Alaska focussed exploration firm said that as a result the offer period will not be extended beyond July 13, at 7:00pm (Sydney).

READ: 88 Energy agrees takeover of XCD Energy[hhmc]
“Those that wish to benefit from the 7 day accelerated payment terms should accept into the offer immediately or risk a delay of up to approximately 50 days to receive the consideration shares under the compulsory acquisition timetable,” 88 Energy said in a statement.

In May, 88 Energy said the combination withRead More – Source

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88 Energy Ltd (LON:88E) told investors its offer for XCD Energy has now reached a level that guarantees it will reach the minimum threshold required for compulsory acquisition.

The AIM-quoted Alaska focussed exploration firm said that as a result the offer period will not be extended beyond July 13, at 7:00pm (Sydney).

READ: 88 Energy agrees takeover of XCD Energy


“Those that wish to benefit from the 7 day accelerated payment terms should accept into the offer immediately or risk a delay of up to approximately 50 days to receive the consideration shares under the compulsory acquisition timetable,” 88 Energy said in a statement.

In May, 88 Energy said the combination withRead More – Source

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