Good morning, everyone. Just before we get started, just a massive shout-out to Phil and the team for putting on such a great conference. Thank you all for attending this morning to talk about Ora Banda, which is entering a really exciting couple of years ahead of us as we aim to double production and fully transform the business over the next couple of years. Before we get into that, I guess the main thing just to locate everyone, we're just northwest of Kalgoorlie. The important thing with that is we're on the convergence of two major regional structures. These structures are deep tapping. They're known to host high-grade gold, and we're on a belt that's about 140 kilometers long that's never had real exploration at depth.
If you hold that thought, right at the end, you'll see a slide that actually highlights that. 95% of the holes historically have been in the top 100 meters. Over the last four years, we've been directly targeting underground, and we've managed to triple production in that time, and we aim to double it again in the next couple of years. In terms of the team and the corporate structure, we've got a great board. All the disciplines covered. We've got a great management team through there. Many of them are new to the business over the last few years, and really got the skills to sort of unlock the next value of growth. From a business perspective, we've got a couple of billion shares on issue hovering around that 2 billion market cap.
W e've got AUD 260 million in the bank, plus the undrawn AUD 200 million revolver. Really well held across the institutional shareholders, both domestic and overseas. People that are coming on board are really encouraged to be for the medium term as we unlock further growth as we go forward. What's allowing us to do that is we've had a massive really four years of fixing the business and we're kind of through that phase, and you'll see a chart that highlights that in a little bit more detail shortly. FY 2026 was very much about setting the platform for further growth. We had resource growth, we have reserve growth, so extending those mine lives from a no data perspective. Cash flows, liquidity increased substantially.
It was record production for the belt, like historically across that area of 140,000 ounces. What does that look like in terms of graphs? Basically, when we sat here, this was sub 50,000 ounces. That was an open pit strategy that sort of, with a small mill, centralized mill. We found our first underground, started bringing that in, went to 70, then 90 with our second. This year it was basically 140,000 ounces. What it's been is an uncomfortable 140,000 ounces. We bottlenecked our mill. It's a 1.2 million per annum mill. We had to toll treat about 600,000 ton. That's very expensive. It brings cash flow forward, which has been helpful. Ultimately, it really demonstrated the business case to build a new mill.
Where we want to get to over the next three years strategy is get to a comfortable 300,000. Just for context, what that means is we're building a brand new mill beside the old one. The old mill does 1.2 million ton. It costs us as a business AUD 75 million a year to run that. The new mill at 3 million ton will cost us about AUD 84 million. For an extra AUD 9 million total spend, you get two and a half times the throughput. That's when you really start getting genuine leverage to scale. Basically, our milling costs halve, and then it allows us to bring in a lot more things along the belt. Why that's important is, like I mentioned previously, low-grade open pits through a small mill doesn't work.
Suddenly it allows us to find big bulk open pits with really good low strip, good grades, but be able to feed that in over the top of the undergrounds. We build this mill. There's no tie-in risk. We're building a brand new mill beside it. It's basically, it'll be able to be expanded or worked on and commissioned without any interruption to the existing mill. The other thing we're doing is we're right-sizing other infrastructure. It's not just the mill that's held us back, it's camps, it's flights, it's airstrips, it's assay labs. There's a lot of leakage in the business as we sort of bottlenecked all the capital. We're putting a big capital injection to that.
Over the next sort of 18 months, we right-size not just processing capacity, we right-size all other capital to support that processing capacity. The other piece is turning on a couple of mines. We've been data poor this whole time. We've been basically turning from first drill hole to cutting portals within nine months, and we've done that because we had to. We're in a tough situation. Now we're sort of able to drill these deposits ahead of time. We're starting to really push out that resource and reserve piece, and that's that final commitment of that AUD 75 million. Last, or FY 2026, the year just gone, we spent AUD 75 million. Our resources jumped sort of over one and a half million ounces. Reserves doubled.
We're still going to be drilling that over the next few years to extend that data. We're in a really, really exciting phase now. Like we talk about this is the fixing phase, and now this is the right sizing. When we get to there, our costs should push down materially, our unit costs, and basically, you're elevating into that mid-tier range. The other thing we did when we really tested the business metrics, in the gold price environments, you can kind of see the cash flow growth through there. That's the revolver sitting there. We put in these put options. Basically, when we're stress testing, like ideally it should be an 18-month build, but we've built in a six-month delay to that.
When we were stress testing that in low gold price environments, it got quite uncomfortable with a six-month delay building big stockpiles. Ultimately, we put in AUD 6,000 put options that kick in sort of from the end of this year all the way through to June 2028. We've largely insulated ourselves from fluctuation in gold price. As we enter that heavy CapEx period, we do not want to blink at any particular area because what it does to transform the business, we should pursue that really rapidly. We do not want to get halfway through and go, "Ooh, this looks tough." This was kind of the final piece with the revolver to really stress test those downside scenarios and put us in a really good spot to complete the build from there.
Exploration piece can't be understated. We've got AUD 75 million that was spent. We still have to bring out a maiden resource on one of our bigger expected resources later in this year in Little Gem. That was part of that spend. Then we intend to spend sort of AUD 75 million. FY 2026 was much of about a resource growth year. FY 2027 onwards, we start pivoting to reserve and resource in parallel. About half the feed will go to infill, and half of it'll go to extensional from that perspective. So what does that look like when we talk about the actual mines of what we're doing? This is Sand King. This has been ramped up over the last couple of years. It'll be a steady state 100,000-ounce producer.
When we first started it, the mine life looked about like that. Then what we did, we put a drill drive out there, put a drill drive out there, and we've converted all of this and all of this. Excitingly, we see this whole area starting to light up as a potential third decline. When you look at that in plan view is this is the mine footprint that we're mining there, the decline is there and there. We've got an old pit here. This year, we're going to put a decline there and some drill drives, and then we can drill them for underground. The importance of getting underground drilling in is it's four times more effective than surface, so it's half the cost and half the distance.
Basically, if you can justify getting down there, you put the underground rigs on it and you hit it pretty hard, and you can get a lot of data very quickly, which is what we're doing. Riverina is our current other operating mine. From an underground perspective, that's just been going down. That is what we've mined over the last three years. We've tagged the system down to a kilometer depth. It will take us about 10 years to get down there. We see that as a really good supplement to Sand King. Sand King operates at about sort of 100,000 ounce a year run rate. Riverina is sort of in that 50,000 ounce a year run rate. It's a good supplementary.
Then what happens to the business is because we are now building a mill, we do not want to keep toll treating, because we want to make sure that goes through our mill. At the end of October, we will stop the toll treating for this year. What we will end up doing is focusing on Waihi Underground as our third underground. We are operating open pit there now. That will finish in November. What we're going to do is we're going to punch an underground here because this is a really high-grade lode. When we pivot from being a volume play with the toll treat through the mill, we need to become a grade play. That's a really important piece of the business going forward over the next 18 months.
What that looks like in section, this is the lode over here. You've got this mine here was mined 100 years ago at ounce dirt, about 80,000 tons at ounce dirt. We've drilled beside it, and it looks like we've hit a repeat on that one. You can kind of see the grades on the side, but you get good widths, and up to 2 ounce dirt in that window. That's about 200 meters long there. Basically, this will start coming online around the middle of next year. The development will go in, we'll start stoping these areas. We'd be able to get sort of that high-grade feed coming through, and that's a 5-gram reserve coming in over the top of the other stuff, which is mid-3s.
All of these coming together, but I guess the next major one we've got is the Round Dam system, and that's one that's been pretty exciting from what we're doing. Just to give you a feel of what that was historically, previously owners thought it was one lode offset by faults, and it was mined as one lode. The geology team came through and remapped that, and what they found is it's actually five lodes that goes through this area. When you sit back and drill it, where people were sort of focusing on one area, we're actually able to bring the five in.
This went from 100,000 ounces last year, and we had four rigs on it from July to December last year, and that turned into 1.3 million ounces to give you a feel for the scale of it. When yo u look at that in section, previously pits were focusing on that, or that 1. We've come back and we've drilled, and we're starting to tag multiple lodes through that area. When you look at it on long section, that's when you really get a feel for the scale. When we're sitting here, just that area is the bulk of the 1.3 million ounces down to about 250 meters. That's 3.5 kilometers long. We're drilling that next 3.5, but it goes for another 5 kilometers that way and another 10 kilometers that way.
Basically, we get a 20K belt that's been largely underexplored from that perspective. This is super exciting. We've got five rigs drilling that now from an infill perspective from the PFS shells, and then we're going to start seeing if we've got anything at depth at well, which really can sort of advance resource and reserve positions really quickly. All of those come together. Those four mines come together sort of to form that drive to 300, which is to get to 300,000 ounces in FY 2029. The next piece is we've actually uncovered another major system which will bring that maiden resource out in September. This was the Riverina mine, and just south of that we've found a Little Gem discovery. What we're seeing again is stack lodes.
This Sapphire Trend, we were targeting this trend here, drilling it, and then this Sapphire Trend started lighting up. We're pretty excited by that one. When you look at that in scale, once again, this is like a 10-kilometer-long stretch that every hole you drill has gold in it. Some of it's low grade, but it's also presenting as if we find the high-grade flexures, that's what we're looking for. Our focus is this kind of mile-wide box here for Little Gem. To give you a feel of scale for that corridor through there is equal to the entire 600-meter strike of that from a drill hole perspective. We're looking forward to see the maiden resource. We've tagged it down to a kilometer. We're infilling all through here.
It doesn't form part of that drive to 300. It's kind of the three-year plan after that, if you will. It's another exciting area. There's further exploration, which ideally just keeps pushing the bow wave out. Basically we'll sit, and this, like I mentioned at the start, this is what all the trends looked like four years ago, that top 100 meters peppered, and all the golds come from underneath. The drill holes that we have down there sort of sit between half ounce and ounce dirt. Basically, we'll sit, and this, like I mentioned at the start, this is what all the trends looked like four years ago, that top 100 meters peppered, and all the golds come from underneath. The drill holes that we have down there sort of sit between half ounce and ounce dirt.
Basically, we're chasing that as well. We'll keep mullock ticking over, but that's really starting to push the bow wave of exploration a long way in front. Ultimately, like I said at the start, it's a really exciting couple of years. We've gone through four years of fixing, which is exciting in its own way, but quite stressful. Now we're going to the front foot growth. The capital we're deploying materially improves the business both from a production up, cash flows up, costs down, gives scalability, starts right-sizing everything. The new mines we turn on with Waihi Underground, Round Dam, open pit, we start building stockpiles. We're de-risking the business in many ways. On top of that, we get the Little Gem resource coming out, which we're excited about as well.
Yeah. Feel free to come and reach out after this talk at a booth outside. Yeah, it should be a fun couple of years ahead. Yeah, feel free to ask any questions when we get outside. Thank you very much.