GDM Hits 51% Ownership After First Gold Pour at Challenger Mine
Great Divide Mining has poured its first gold at the Challenger Gold Mine, triggering a key ownership milestone and setting the stage for commercial production in the near term.
- First gold pour achieved at Challenger Gold Mine
- Ownership in Challenger Mines Pty Ltd increases to 51%
- Low-cost, environmentally sensitive gravity recovery process used
- Commercial production plans being finalized
- Joint venture with Adelong Gold Limited advancing
First Gold Pour Marks Operational Milestone
Great Divide Mining Ltd (ASX – GDM) has announced a significant operational achievement with the first gold pour at its Challenger Gold Mine in southern New South Wales. This milestone not only demonstrates the company’s ability to transition from exploration to production but also triggers the "Second Completion" under the March 2025 Share Sale Agreement, elevating GDM’s ownership in Challenger Mines Pty Ltd to a majority 51% stake.
Environmentally Conscious and Cost-Efficient Recovery
The gold production at Challenger has been achieved using a gravity recovery process that notably avoids the use of process chemicals, relying instead on recycled water as the sole additive. This method is both cost-effective and environmentally sensitive, employing simple equipment that is quick to install and maintain. The process yields a gold concentrate, which is less complex and less expensive to produce than traditional gold dore bars, aligning with GDM’s strategy to conserve shareholder capital while generating cash flow.
Strategic Joint Venture and Future Plans
The Challenger Gold Mine operates under a joint venture between Great Divide Mining and Adelong Gold Limited (ASX – ADG). As the operator, GDM is focused on rapidly ramping up production and optimizing the gold recovery plant. The company is mobilizing specialist contractors and consultants to the site to support this transition. Additionally, GDM plans to supplement revenues through the sale of quarry by-products to local users, reflecting a diversified approach to monetizing the asset.
Exploration Upside and Commercial Production Outlook
Located within the Adelong Project, the Challenger Gold Mine benefits from existing infrastructure, including a processing plant constructed in 2016/17. GDM’s forward plan includes finalizing commercial production commencement and advancing resource definition and extension drilling. These steps aim to unlock further value from the high-grade, underexplored goldfield. The company has committed to communicating detailed plans to shareholders in the coming weeks, signaling confidence in the project’s growth potential.
A Rapid Evolution to Cash Flow
Chief Executive Officer Justin Haines emphasized the company’s rapid progress since its IPO less than two years ago, highlighting the transition from a junior explorer to a cash-flow generating mining operator. The focus now shifts to scaling operations at Challenger and leveraging the joint venture structure to maximize shareholder value while maintaining a low environmental footprint.
Bottom Line?
Great Divide Mining’s first gold pour and majority ownership mark a pivotal step toward commercial production and cash flow generation at Challenger.
Questions in the middle?
- When exactly will commercial production commence and at what scale?
- What are the projected production volumes and associated costs once ramp-up is complete?
- How will GDM balance exploration ambitions with operational demands at Challenger?
