Adelong Joint Venture Dispute Pauses Operations Amid Production Ramp-Up
Great Divide Mining has poured its first gold at the Challenger Gold Mine, marking a key milestone as it moves from exploration to production. The company raised $1.335 million to support its ramp-up plans amid ongoing joint venture challenges.
- First gold pour achieved at Challenger Gold Mine
- Ownership in Challenger Mines increased to 51%
- FY2026 production target of 500 oz/month, scaling to 20,000 oz/year
- Raised $1.335 million via convertible loan notes
- Operations paused due to joint venture dispute at Adelong
From Exploration to Production
Great Divide Mining Ltd (ASX, GDM) has reached a pivotal moment with its first gold pour at the Challenger Gold Mine in New South Wales. This achievement, announced in its September 2025 quarterly report, signals the company’s successful transition from a junior explorer to a producing miner in under two years since its IPO. The milestone also triggered an increase in GDM’s ownership stake in Challenger Mines Pty Ltd from 15% to 51%, consolidating its control over the asset.
Production and Expansion Plans
Looking ahead, Great Divide aims to ramp up production to 500 ounces of gold concentrate per month during FY2026. This initial target is set to expand significantly to an annualised production of 20,000 ounces once primary mining operations commence. The company’s strategy focuses on capital efficiency and sustainability, employing gravity-based processing with recycled water and no chemical additives, underscoring its commitment to environmentally responsible mining practices.
Capital Raising and Financial Support
Supporting these ambitions, GDM successfully completed a $1.335 million capital raising through convertible loan notes, exceeding its initial $1 million target. The strong investor demand, including participation from directors, will fund optimisation and development milestones at Challenger. This injection of capital is critical as the company prepares to scale operations and expand its resource base.
Operational Challenges and Joint Venture Dispute
However, the path forward is not without hurdles. Operations at the Adelong Venture, which includes the Challenger Gold Mine, have been paused due to a dispute among joint venture partners. While discussions continue to resolve the impasse, the delay introduces uncertainty around the timing of continuous production and expansion plans. Investors will be watching closely for updates on the resolution and its impact on project timelines.
Broader Exploration Activities
Beyond Challenger, Great Divide is actively progressing exploration across multiple Queensland projects. Notably, the Coonambula Antimony-Gold Project is advancing under a joint venture with Dart Mining NL, with drilling underway at the Banshee Prospect. Other projects, including Devil’s Mountain, Yellow Jack, and Cape, are in various stages of exploration and planning, highlighting GDM’s diversified portfolio and growth potential.
Sustainability and Community Engagement
The company is also expanding its ESG initiatives, focusing on water recycling and strengthening community partnerships. These efforts align with broader industry trends emphasizing sustainable mining and social license to operate, which could enhance GDM’s reputation and stakeholder relations as it scales production.
Bottom Line?
Great Divide’s first gold pour is a major step, but the joint venture dispute and production ramp-up will be critical to watch in the coming months.
Questions in the middle?
- How will the joint venture dispute at Adelong impact production timelines and costs?
- What are the prospects for expanding the resource base beyond current targets?
- How will GDM balance rapid production growth with its sustainability commitments?
