GIB’s Mining Start Brings Revenue Hope Amid Uncertain Ore Volumes
Gibb River Diamonds has begun mining at its Edjudina Gold Project in Western Australia, stockpiling high-grade ore and securing a processing deal with Black Cat Syndicate. First cash proceeds are expected by early 2026, marking a pivotal step for the company.
- Mining commenced at Edjudina Gold Project with ~61,000 tonnes of high-grade ore stockpiled
- Ore Purchase Agreement signed with Black Cat Syndicate for processing 100,000 tonnes at Lakewood Mill
- Mining operations funded and managed by BML Ventures under a joint venture, minimizing GIB’s financial exposure
- First cash proceeds anticipated by February/March 2026
- Exploration drilling planned near Neta resource, funded by mining proceeds
Mining Milestone at Edjudina
Gibb River Diamonds Limited (ASX, GIB) has officially commenced mining operations at its 100% owned Edjudina Gold Project in Western Australia’s Eastern Goldfields. The company reported that approximately 61,000 tonnes of high-grade ore from the Neta Prospect have been stockpiled as of late October 2025, signaling tangible progress in unlocking the value of this promising deposit.
Mining activities are being conducted by BML Ventures Pty Ltd under a joint venture arrangement, where BML assumes all capital and operating costs. This structure effectively shields GIB from upfront financial risk, allowing the company to focus on resource development while sharing future cash flow benefits equally with its partner.
Processing Agreement and Revenue Outlook
Post-quarter, GIB executed an Ore Purchase Agreement with Black Cat Syndicate Limited (ASX, BC8) to process 100,000 tonnes of ore at the Lakewood Mill near Kalgoorlie. Milling is scheduled to begin in late December 2025 and conclude by mid-January 2026, with first cash proceeds expected to flow to GIB by February or March 2026. This milestone marks the transition from exploration to revenue generation, a critical phase for the company’s growth trajectory.
While the initial processing contract covers 100,000 tonnes, GIB anticipates mining significantly more treatable material from Neta. Additional processing agreements will be necessary and are expected to be announced in due course. Notably, all production will be sold on the spot gold market, with no forward sales locked in, exposing GIB to prevailing gold price dynamics.
Exploration and Broader Project Portfolio
Looking ahead, GIB plans to fund further exploration drilling on the recently acquired and under-explored mining lease M31/481, located near the Neta resource. This lease hosts historic workings and offers potential for resource expansion, which could enhance the project’s long-term value.
Beyond Edjudina, GIB maintains interests in several other projects, including the Ellendale Diamond Project in WA, where it aims to restart diamond production with a strategic partner, and a 1% net smelter royalty on the Dante Project in the Musgrave region. The company also holds a 20% free-carry interest in the Iroquois Zn/Pb Project and uranium exploration permits in Namibia, though the status of these permits remains uncertain.
Financial Position and Outlook
GIB’s latest quarterly cash flow report reveals a cash balance of AUD 415,000, with operating cash outflows reflecting ongoing exploration and corporate costs. Payments to related parties totaled AUD 70,000 for salaries and consulting. The company expects to sustain operations through minimal expenditures and the forthcoming cash inflows from mining activities at Edjudina, which are fully funded by BML Ventures.
Executive Chairman Jim Richards highlighted the significance of these developments, emphasizing the minimal financial exposure for GIB and the exciting potential benefits for shareholders given the current gold price environment. The company’s strategy of leveraging joint ventures and ore purchase agreements appears designed to accelerate project monetization while managing risk.
Bottom Line?
As mining gains momentum and processing contracts unfold, Gibb River Diamonds is poised to convert its resource potential into tangible returns, but the scale of future production and exploration success remain key variables.
Questions in the middle?
- How much additional treatable ore will be mined beyond the initial 100,000 tonnes contracted for processing?
- What are the prospects and timelines for securing further processing agreements to handle excess ore?
- How will fluctuations in the spot gold price impact GIB’s revenue and profitability given no forward sales are locked in?
