Gibb River Diamonds looks to cash in on gold at Edjudina
Gibb River Diamonds has signed a contract mining agreement with Kalgoorlie-Boulder firm BML Ventures to mine an open pit at its Edjudina gold project north-east of Kalgoorlie-Boulder.
Gibb River told the Australian Securities Exchange on Wednesday the focus would be on realising the commercial potential of the Neta deposit.
The company said Neta had a mineral resource estimate of 378,000 tonnes at 1.9g per tonne for 24,000 ounces of gold, with 110,000t at 2.2g/t for 8000oz in the indicated category.
Gibb River said BML would be responsible for all mining-related capital and working capital costs, with Gibb River providing no capital for the project.
'BML's role is to cover all aspects of mining and deliver the mineralised material to one of a number of nearby gold processing plants,' Gibb River said.
'Once project expenses have been paid, with costs being reimbursed from operational cash flow, the net surplus cash will be split 50:50 between (Gibb River) and BML.'
The companies are working together to obtain remaining approvals, and aiming to start mining this year — potentially as early as August.
Gibb River said processing arrangements still needed to be established with one of the third-party processing plants in the region.
'There are no forward sales locked in for this mining operation and all production will be sold into the spot gold market,' Gibb River said.
Gibb River acquired Edjudina in a cash-and-scrip deal in 2020, and at the time said historic production figures for the entire Edjudina field up to 1921 were 39,476oz at 41.0g/t.
The company also has the Ellendale diamond project in the Kimberley, and in its most recent quarterly report said it was seeking a strategic partner to progress the project, with the ultimate aim being to re-establish diamond production at the site.
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Gibb River Diamonds has signed a contract mining agreement with Kalgoorlie-Boulder firm BML Ventures to mine an open pit at its Edjudina gold project north-east of Kalgoorlie-Boulder. Gibb River told the Australian Securities Exchange on Wednesday the focus would be on realising the commercial potential of the Neta deposit. The company said Neta had a mineral resource estimate of 378,000 tonnes at 1.9g per tonne for 24,000 ounces of gold, with 110,000t at 2.2g/t for 8000oz in the indicated category. Gibb River said BML would be responsible for all mining-related capital and working capital costs, with Gibb River providing no capital for the project. 'BML's role is to cover all aspects of mining and deliver the mineralised material to one of a number of nearby gold processing plants,' Gibb River said. 'Once project expenses have been paid, with costs being reimbursed from operational cash flow, the net surplus cash will be split 50:50 between (Gibb River) and BML.' The companies are working together to obtain remaining approvals, and aiming to start mining this year — potentially as early as August. Gibb River said processing arrangements still needed to be established with one of the third-party processing plants in the region. 'There are no forward sales locked in for this mining operation and all production will be sold into the spot gold market,' Gibb River said. Gibb River acquired Edjudina in a cash-and-scrip deal in 2020, and at the time said historic production figures for the entire Edjudina field up to 1921 were 39,476oz at 41.0g/t. The company also has the Ellendale diamond project in the Kimberley, and in its most recent quarterly report said it was seeking a strategic partner to progress the project, with the ultimate aim being to re-establish diamond production at the site.
