Ora Banda Mining (ASX:OBM) has delivered strong high-grade drilling results at its Golden Pole lode, supporting underground development potential and resource growth at the Waihi Project near the Davyhurst plant, Euroz Hartleys said in a note on Tuesday.
Targeted infill and extensional drilling in the latest 22-hole program returned results, including three meters at 44 grams per tonne grade of gold, including two meters at nearly 65 g/t grade of gold, and 11 meters at 11 g/t gold, including two meters at 48 g/t grade of gold.
The firm noted that the results de-risk Golden Pole as a near-term underground development, with consistent high-grade intercepts confirming grade continuity and mining potential.
The firm said the project's proximity to the Davyhurst plant supports low-capital intensity growth through potential reserve conversion, with Waihi increasingly seen as a third underground feed source supporting the company's production expansion strategy.
Euroz added that ongoing drilling success is expected to support a resource update and maiden underground reserve estimate targeted for the early June quarter, as the company advances its strategy to expand production through inventory growth and infrastructure leverage.
Euroz Hartleys kept a buy rating on Ora Banda Mining with a price target of AU$1.88.