Uncertain Ore Volumes and Future Processing Deals Pose Challenges for Gibb River Diamonds
Gibb River Diamonds has inked a significant ore processing agreement with Black Cat Syndicate, advancing mining operations at its Neta Project with first gold sales expected early next year.
- Ore Purchase Agreement signed with Black Cat Syndicate for 100,000 tonnes processing
- Mining progressing well at Neta Prospect with over 51,000 tonnes stockpiled
- Processing to start late December 2025, first cash proceeds anticipated by Q1 2026
- Mining contractor BML Ventures assumes all mining costs, minimizing GIB’s financial risk
- Additional processing contracts expected as mining volume exceeds initial agreement
Ore Processing Agreement Advances Project Milestones
Gibb River Diamonds Limited (ASX – GIB) has taken a decisive step forward in its Edjudina Gold Project by signing an Ore Purchase Agreement with Black Cat Syndicate Limited (ASX – BC8). This agreement covers the processing of 100,000 tonnes of ore from the Neta Project at Black Cat’s Lakewood Mill near Kalgoorlie, Western Australia. The milling campaign is scheduled to commence in late December 2025 and is expected to conclude by mid-January 2026, setting the stage for GIB’s first gold revenue by February or March 2026.
Mining Progress and Operational Structure
Mining operations at the Neta Prospect are advancing steadily, with approximately 51,000 tonnes of high-grade ore currently stockpiled as of mid-October 2025. This material originates from the Neta JORC Indicated Resource, which was reported in November 2023. The company’s mining contractor, BML Ventures Pty Ltd, is responsible for all mining-related capital and operating costs, effectively shielding GIB from direct financial exposure during this phase. BML’s role includes delivering the mineralised material to processing plants, with GIB sharing net surplus cash flows equally with BML after operational costs are covered.
Looking Beyond the Initial Processing Contract
While the current agreement with Black Cat Syndicate covers 100,000 tonnes, GIB anticipates mining significantly more high-grade material from Neta. This means additional processing contracts will be necessary, and the company has indicated that further arrangements will be announced in due course. All gold production from the project will be sold on the spot market, with no forward sales locked in, allowing GIB to potentially benefit from favourable gold price movements.
Strategic Positioning in the Eastern Goldfields
The Edjudina Gold Project, located 145 kilometres northeast of Kalgoorlie, sits in a prolific gold-producing region. The Neta Prospect alone holds an Indicated and Inferred JORC Resource of 378,000 tonnes at 1.9 grams per tonne gold, equating to approximately 24,000 ounces. With mining and processing activities ramping up, GIB is positioning itself to transition from exploration to production, a critical phase for junior mining companies seeking to establish sustainable cash flow.
Management Confidence and Next Steps
Executive Chairman Jim Richards expressed optimism about the recent developments, highlighting the company’s on-track progress toward first gold revenue. The collaboration with experienced partners such as Black Cat Syndicate and BML Ventures underpins a low-risk operational model for GIB. Investors will be watching closely for updates on mining volumes, processing outcomes, and market conditions as the project moves into its production phase.
Bottom Line?
Gibb River Diamonds is poised to convert its resource potential into tangible revenue, but the scale and timing of future processing contracts will be key to sustaining momentum.
Questions in the middle?
- How much additional high-grade ore will be mined beyond the initial 100,000 tonnes?
- What are the terms and timelines for future processing contracts beyond Black Cat Syndicate?
- How will fluctuations in the spot gold price impact GIB’s revenue and cash flow projections?
