Month: June 2023

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Riverina Decline Advancing At Forecast

The decline advance rate at Ora Banda Mining’s Riverina Underground development is progressing in line with forecast after the underground portal was established last month. The total advance is at 225.7m as of June 25 2023, with the main decline at 194.3m and a further 31.4m in other development according to the company today.

Jumbo at Ora Banda Mining’s Riverina Underground boring out the face. – Supplied.

In other areas of Ora Banda’s operations updated to the market today, Crushing circuit downtime will affect Q4 guidance by around 14%. The previous stated guidance of 14,000oz is now more aligned to around 12,000oz. The repairs and maintenance are ongoing with an expected operational date for the crushing circuit of July 1 2023.

All was not lost though for Ora Banda with an increase of over 40% for Q4 oz produced compared to the average of the previous three quarters via open pit mining. Managing Director Luke Creagh was disappointed with the downtime, but seemed optimistic overall. “Whilst the crushing circuit downtime is disappointing, it is a short-term impact that is not expected to have any long-term implications to the business. We expect the current circuit to be fully operational by 1 July 2023, and the previously announced crusher upgrades in FY24 will ensure the crushing circuit is no longer a bottleneck to performance.” he said. 

Development is commenced with Byrnecut Australia in May 2023, with the portal established mid May 2023.

Industry Link Media covered the maiden resource announcement by Ora Banda Mining here: Recap of Maiden underground resource announced by Ora Banda here 

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End of FY23 Monday Morning M & A

It’s been a busy start to the ASX on the last Monday of the 2023 Financial Year.

Heading off the big names on the list are Perenti Limited. The mining services group, has snapped up ASX listed drilling contractor DDH1.

DDH1 Rig in Operation – Via LinkedIn

 

According to Managing Director and CEO of Perenti Mark Norwell, this is the next step for Perenti, who also have BTP, Ausdrill and Barminco in their stable

“This is a compelling transaction that represents an exciting next step in delivering on Perenti’s purpose, to create enduring value and certainty, by building a portfolio of complementary high quality businesses. Perenti has a long history in drilling from its Ausdrill heritage and Barminco Diamond Drilling business and understands the attractiveness of the market. Norwell said.

While Northern Star Resources also announced to the market this morning an expansion to their portfolio by aquiring the Millrose Gold Project, from Strickland Resources Ltd. The location of the Millrose Gold Project is within a 40km distance of Northern Star`s Jundee operations. The asset adds a published Mineral Resource of 346koz gold at a grade of 1.80g/t. Stuart Tonkin, Northern Star Resources Managing Director said of the deal “This bolt-on acquisition, which also comes with significant brownfields exploration upside, will provide us with further confidence to plan organic and profitable growth for Jundee, which already is the lowest cost asset in our tier-1 portfolio.”

The take over of Musgrave Minerals by Westgold Resources has also been active on the market this morning. Musgrave has advised its shareholders to reject the offer and you take no actions. The offer was that Westgold all scrip offer of 1 Westgold share for every 5.37 Musgrave shares. Shareholders were provided with five reasons that the board considered the offer was not in the best interests.

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Northern Star Massive KCGM Investment

KCGM owner, Northern Star Resources today announced a final investment decision in relation to the KCGM Mill expansion.

The Northern Star board has approved $1.5 Billion to increase and modernise KCGM`s processing from 13Mtpa to 27 Mtpa. The process is expected to comprise of a three year construction phase with planning and long lead items ordered.

 

Managing Director for Northern Star, Stuart Tonkin said

“Today is an exciting day for Northern Star and a historic new chapter for this world-class asset. “The Board’s decision to approve the KCGM mill expansion and optimisation represents the next stage to revitalise our largest asset as well as the surrounding district for decades to come.

This Project is financially compelling, and a significant enabling step towards delivering our strategy to generate superior returns for our shareholders.

Further, the Project is important in our sustainability journey and will also sustain hundreds of local jobs, economic and social investment, and local procurement opportunities in the Goldfields region.”