Heritage Survey Success Removes Key Risk for Gibb River Diamonds’ Neta Mining Plans
Gibb River Diamonds has successfully completed a heritage survey over the proposed open pit at its Neta Prospect, removing a key obstacle to mining development within the Edjudina Gold Project. The project moves closer to production with mining costs borne by a private contractor.
- Heritage survey at Neta Prospect completed with no issues raised
- Mining to be conducted by private contractor BML Ventures at no capital risk to GIB
- Neta Prospect holds 24,000 ounces of gold in Indicated and Inferred resources
- Permitting applications pending with West Australian Mines Department
- Production to be sold on the spot gold market with no forward sales locked in
Heritage Survey Success
Gibb River Diamonds Limited (ASX – GIB) has announced the successful completion of a heritage survey over the proposed open pit mining area at the Neta Prospect, part of its Edjudina Gold Project in Western Australia. Conducted in collaboration with the Nyalpa Pirniku People and the Wangkatja Tjungula Aboriginal Corporation, the survey found no heritage concerns that would impede mining activities. This milestone clears a significant regulatory and community engagement hurdle, paving the way for the next phases of project development.
Mining Partnership and Financial Structure
The mining operation at Neta will be carried out by private contractor BML Ventures Pty Ltd, who will assume all capital and operational costs associated with mining. This arrangement effectively removes financial risk from Gibb River Diamonds regarding mining expenditures. After operational costs are reimbursed from cash flow, any net surplus will be split evenly between GIB and BML, aligning incentives for both parties to optimise production and profitability.
Resource and Project Context
The Neta Prospect boasts an Indicated and Inferred JORC Resource of approximately 378,000 tonnes grading 1.9 grams per tonne gold, equating to around 24,000 ounces of gold. Within this, an Indicated Resource of 110,000 tonnes at 2.2 grams per tonne accounts for 8,000 ounces. Located 145 kilometres northeast of Kalgoorlie, the Edjudina Gold Project sits in the prolific Eastern Goldfields region, with multiple nearby gold processing facilities accessible by road.
Regulatory and Operational Next Steps
Permitting applications for the Neta mining operation are currently under assessment by the West Australian Mines Department (DEMIRS). Meanwhile, GIB is finalising ore processing arrangements, which will be disclosed once completed. Notably, the company has not entered into any forward sales agreements, opting to sell all production into the spot gold market, which exposes the project to prevailing gold price fluctuations but also allows for potential upside.
Exploration Upside
Beyond the Neta Prospect, the Edjudina Project holds significant exploration potential, with multiple historic gold workings extending over a 13-kilometre strike. Adjacent mining leases, including M31/481, have been surveyed for heritage clearance and host promising gold targets, suggesting that the project’s resource base could expand further as exploration progresses.
Bottom Line?
With heritage clearance secured and mining partnerships in place, Gibb River Diamonds is poised to unlock value at Edjudina, though permit approvals and processing deals remain key near-term catalysts.
Questions in the middle?
- When will the West Australian Mines Department grant final permits for mining at Neta?
- What are the terms and timelines for finalising ore processing arrangements?
- Could exploration success in adjacent leases materially increase the project’s resource base?
