The Ora Banda Mining Ltd (ASX: OBM) share price is having a strong session on Tuesday.
In morning trade, the ASX mining stock is up 5% to a multi-year high of 58.7 cents.
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Why is this ASX mining stock roaring higher?
Investors have been bidding the gold miner's shares after it released an update on its Riverina and Sand King underground mines at the Davyhurst Gold Project.
These mines are the centrepiece of the company's Drive to 150 Project. It is aiming to take the ASX mining stock's annual production to between 140,000 ounces and 160,000 ounces in FY 2026.
This compares to its current annualised production of 77,084 ounces.
According to the release, at Riverina, mining has been progressing steadily and remains on schedule with stoping and face advancement rates in line with expectations. Ora Banda also advised that the mine continues to be the focus of increased exploration as it seeks to test mineralisation extensions to the south-west and north-east.
In addition, mining operations have commenced at the Sand King underground mine with the portal established and mine development underway. Management notes that the decline is advancing well in good ground conditions and recruitment of specialty management and technical staff is well on track.
As a result, first development ore is expected at Sand King in the December quarter. After which, first stoping ore is expected in the March quarter with steady state of 60,000 ounces per annum commencing in the June quarter.
'Confidence is growing'
The ASX mining stock's managing director, Luke Creagh, was pleased with the progress at the Davyhurst Gold Project. He said:
As mining and drilling progresses at Riverina, our confidence is growing that we are only at the very early stages in unlocking what is presenting as a large and high-grade system. The addition of a second underground diamond rig as well as two surface drill rigs in the coming months is an exciting catalyst for the next wave of drill results as we target material extensions to the current Riverina system.
Commencing Sand King is also an exciting time for the Company, demonstrating commitment to our strategy and placing us on the path to deliver 140,000 to 160,000oz in FY26.
Following today's gain, this ASX mining stock is now up a massive 430% over the last 12 months. To put that into context, a $2,500 investment a year ago would be worth north of $12,500 today.
