Pit Wall Failure and Grade Control Issues Cloud Gibb River Diamonds’ Edjudina Outlook
Gibb River Diamonds reports completion of ore processing at Three Mile Hill and ongoing operations at Lakewood, recovering significant gold ounces and generating early revenue. Mining challenges at Neta Pit have impacted grades but are partly offset by increased tonnage and gold prices.
- 33,528 tonnes processed at Three Mile Hill yielding estimated 1,377 ounces gold
- Lakewood campaign ongoing with 70,520 tonnes processed and 2,841 ounces recovered
- A$7.6 million revenue from first gold sale at Lakewood
- Mining at Neta Pit completed with grade control and pit wall failure challenges
- First cash proceeds to GIB expected by February/March 2026
Processing Milestones at Edjudina
Gibb River Diamonds Limited (ASX, GIB) has announced the completion of ore processing at the Three Mile Hill facility near Coolgardie, marking a significant milestone in its Edjudina Gold Project operations. A total of 33,528 dry metric tonnes of blended ore from the Neta Gold Mine were processed, with an estimated recovery of 1,377 ounces of gold in dore bars. These dore bars have been dispatched to a refinery, with final refined gold figures pending reconciliation.
Meanwhile, processing at the Lakewood facility near Kalgoorlie continues robustly. As of mid-January, approximately 70,520 tonnes of ore have been treated, contributing to an estimated 2,841 ounces of gold recovered. Notably, the company has already completed a gold sale from the first pour at Lakewood, generating A$7.6 million at a realised price of A$6,855 per ounce.
Operational Challenges and Mitigations
Mining at the Neta Pit has now concluded, but not without hurdles. The operation faced difficulties in grade control due to the irregular distribution of gold mineralisation, compounded by a pit wall failure in December. This incident necessitated blending higher-grade ore with lower-grade material, diluting overall gold grades and impacting production expectations.
Additionally, some of the ore sourced from rehabilitated historic workings did not meet anticipated grades, likely due to sampling biases from surface enrichment. Despite these setbacks, the company has sought to mitigate the impact by increasing tonnage throughput and benefiting from the current elevated gold price environment.
Financial and Strategic Outlook
Gibb River Diamonds operates the Edjudina Project under a contract mining agreement with BML Ventures Pty Ltd, which assumes all mining capital and operating costs, thereby limiting GIB’s financial exposure. The net surplus cash from operations will be shared equally between GIB and BML after expenses are covered.
Looking ahead, processing at Lakewood is expected to conclude by late January, with a low-grade stockpile at Neta earmarked for future treatment. The company anticipates receiving its first cash proceeds by February or March 2026, marking a critical step towards monetising the project’s potential.
Further exploration is planned, with drilling set to commence on highly prospective targets within the Edjudina Project once initial cash distributions are received. This ongoing activity underscores GIB’s commitment to expanding its resource base and enhancing project value.
Bottom Line?
Gibb River Diamonds navigates early operational challenges while positioning Edjudina for cash flow and growth.
Questions in the middle?
- How will final gold-in-circuit reconciliations affect reported production figures?
- What impact will the pit wall failure have on future mining plans and resource estimates?
- When will drilling results from new targets at Edjudina be available to investors?
