Gibb River Diamonds and BML Ink 50/50 Gold Mining Agreement at Neta Prospect
Gibb River Diamonds has inked a pivotal mining contract with BML Ventures to kickstart open pit gold mining at its Edjudina Project, aiming for production as early as August 2025.
- Mining agreement signed with BML Ventures for Neta Prospect open pit mining
- BML funds all mining capital and operational costs, reimbursed from cashflow
- Net surplus cash split 50/50 between Gibb River Diamonds and BML
- Mining operations expected to commence potentially in early August 2025
- Processing arrangements with third-party mills underway but not finalized
A Strategic Partnership to Unlock Gold Potential
Gibb River Diamonds Limited (ASX: GIB) has taken a significant step toward becoming a near-term gold producer by entering into a mining agreement with BML Ventures Pty Ltd (BML) for the open pit mining of the Neta Prospect within its 100% owned Edjudina Gold Project in Western Australia's Eastern Goldfields. This deal effectively transforms the potential of the Neta deposit into a commercial reality.
Under the agreement, BML will shoulder all capital and operational mining costs, including haulage, equipment, and staffing, with reimbursements made from the project's cashflow. Once operational expenses are covered, any net surplus cash will be split evenly between GIB and BML, aligning incentives and sharing rewards fairly.
Mining and Processing Plans Take Shape
The Neta Prospect boasts a JORC Indicated and Inferred Resource of approximately 378,000 ounces of gold, with grades averaging around 1.9 grams per tonne. Mining operations are anticipated to commence as early as August 2025, subject to regulatory approvals and heritage clearances, which GIB is actively pursuing in collaboration with the WTAC Native Title Group.
While mining is set to begin soon, processing arrangements remain in progress. GIB and BML are finalizing toll milling agreements with third-party processing plants within trucking distance of the project. The plan is to mill the resource concurrently with mining operations, optimizing scheduling and stockpile management to ensure steady production flow.
A Win-Win Deal with Operational Expertise
BML brings a strong track record in small to medium-scale open pit mining operations across the Goldfields region, leveraging low-cost, owner-operator models to maximize profitability. This partnership allows GIB to advance toward production without upfront capital expenditure, mitigating financial risk while tapping into BML’s operational expertise.
The agreement also includes rehabilitation obligations, ensuring environmental responsibilities are met during and after mining activities. Importantly, GIB retains rights to other areas within the Edjudina Project not covered by this agreement, preserving opportunities for further exploration and development.
Looking Ahead
This contract marks a pivotal moment for Gibb River Diamonds, positioning the company to generate cashflow and build momentum in a competitive gold mining landscape. With mining operations potentially starting within months, the market will be watching closely for updates on approvals, processing finalizations, and early production results.
Bottom Line?
Gibb River Diamonds’ partnership with BML could unlock Edjudina’s gold potential swiftly, but execution and approvals remain key hurdles ahead.
Questions in the middle?
- Will regulatory and heritage approvals be secured in time to meet the anticipated August 2025 mining start?
- Which third-party processing plant will GIB finalize agreements with, and what toll milling terms will apply?
- How will gold price fluctuations impact the profitability and cashflow split under the current agreement?
