Minor Pit Wall Failure Tests Safety at Neta Gold Mine but Production Stays on Track

Mining and Processing Progress

Gibb River Diamonds Limited (ASX, GIB) has officially commenced trucking of mined material from its Neta Gold Mine, part of the Edjudina Gold Project in Western Australia, to two contracted processing mills. The company has secured processing capacity for a total of 130,000 tonnes of ore, split between the Lakewood Mill near Kalgoorlie and the Three Mile Hill Mill near Coolgardie. This milestone marks a significant step forward in the project’s operational phase.

The trucking operation prioritizes high-grade material, with over 11,700 tonnes already delivered to Three Mile Hill and 641 tonnes to Lakewood as of mid-December. Approximately 72,000 tonnes of high-grade ore remain stockpiled at the Neta site, alongside 39,000 tonnes of lower-grade material. These volumes are derived from the Neta JORC Indicated Resource, underscoring the quality and scale of the deposit.

Operational Safety and Incident Management

During late November, a minor pit wall failure occurred at the Neta open pit, partially covering the main ramp. Importantly, there were no injuries or equipment damage reported. A geotechnical assessment was promptly conducted, and corrective measures were implemented to buttress the affected area. Mining operations have since resumed without delay, and the incident is not expected to materially impact production schedules.

Contractual and Financial Structure

Mining at Neta is conducted under a contract mining agreement with BML Ventures Pty Ltd, which assumes all capital and operating costs, effectively minimizing Gibb River Diamonds’ financial exposure. The ore processing agreements include a 100,000-tonne contract with Black Cat Syndicate Limited at Lakewood and a 30,000-tonne arrangement with Focus Minerals Limited at Three Mile Hill. Both milling campaigns are anticipated to conclude by mid-January 2026.

Notably, no forward sales contracts have been locked in for the gold production, meaning all output will be sold on the spot market. This exposes GIB to prevailing gold price fluctuations but also allows for potential upside if prices strengthen. The company expects to receive its first cash proceeds from the operation by February or March 2026.

Looking Ahead

With mining and trucking well underway and processing contracts secured, Gibb River Diamonds is positioned to transition from development to revenue generation in the near term. The company’s partnership with BML Ventures ensures operational efficiency and risk mitigation, while the dual-mill strategy optimizes processing throughput. Investors will be watching closely for production updates and market conditions as the project moves toward its first cash flow milestone.