Ora Banda Mining has approved the development of the Sand King Underground mine, part of its Davyhurst Gold Project.

The mine will be the company’s second underground operation and is projected to reach steady-state production of approximately 60,000 ounces annually from the June 2025 quarter.

The company will begin construction of the Sand King portal in the September quarter, aiming for first development ore by the December quarter and stoping by March 2025.

The project requires an investment of $39 million, which will be funded through operational cashflows from Riverina Underground and existing cash reserves.

With the expansion, Ora Banda targets a 40% increase in production to 150,000 ounces per year by FY26, with an all-in sustaining cost between $1,740/oz and $1,890/oz.

The company plans to invest $25 million in exploration in FY25 and up to $40 million in FY26.