Permit Delays Could Stall Gibb River Diamonds’ Edjudina Mining Plans

Contract Mining Deal Unlocks Edjudina Gold Potential

Gibb River Diamonds Limited (ASX, GIB) has taken a significant step forward in realising the value of its Edjudina Gold Project in Western Australia by entering into a contract mining agreement with BML Ventures Pty Ltd. This arrangement delegates all mining capital and operational expenditures to BML, allowing GIB to mitigate upfront financial risk while sharing in the upside through a 50/50 profit split after costs.

The focus is the Neta Prospect, which holds an indicated and inferred resource of approximately 24,000 ounces of gold at a grade of 1.9 grams per tonne. The agreement enables BML to conduct open pit mining and deliver ore to third-party processing plants, with toll milling arrangements to be finalised soon. Notably, GIB retains full ownership of the project and does not provide capital for mining activities, a strategic move that preserves cash while advancing development.

Regulatory and Operational Milestones

Progress toward mining commencement hinges on regulatory approvals, with GIB awaiting the grant of a Mining Proposal permit from the Western Australian Mines Department. The company is cautiously optimistic that this permit will be granted in time to allow mining to start by August 2025, contingent on BML’s decision to proceed. Additionally, a Native Vegetation Clearing Permit is pending, which would facilitate expanded mining activities beyond the initial footprint.

Importantly, GIB has completed a heritage survey in collaboration with the Nyalpa Pirniku People, confirming no cultural or heritage impediments to mining at Neta. Post-quarter, grade control drilling was conducted to refine mine planning, with results expected to be released shortly. These developments collectively reduce regulatory and operational uncertainties, enhancing the project’s readiness.

Broader Project Portfolio and Financial Position

Beyond Edjudina, GIB continues to manage its Ellendale Diamond Project, where rehabilitation works are underway under the Western Australian Mines Department’s Abandoned Mines Program, with no financial liability to GIB. Meanwhile, uranium exploration permits in Namibia remain pending, with environmental clearances submitted but awaiting government approval.

Financially, GIB reported operating cash outflows for the quarter but maintains a cash balance of AUD 714,000. The company’s approach to development through contract mining and third-party processing reflects a cautious capital management strategy aimed at advancing projects without overextending resources.

Executive Chairman Jim Richards expressed enthusiasm about the partnership with BML and the potential for the Neta Prospect to generate meaningful returns with limited financial exposure. The coming months will be critical as permit approvals and drilling results shape the path forward.