Gibb River Diamonds has progressed mining operations at its Edjudina Gold Project with ore processing underway and first cash proceeds expected early this year. Despite a pit wall incident, operations resumed smoothly under a joint venture with BML Ventures.
- Mining at Edjudina’s Neta Prospect continued under 50/50 JV with BML Ventures
- Ore processing agreements secured for Lakewood and Three Mile Hill mills
- Pit wall failure incident caused no injuries or damage; mining resumed with mitigations
- No gold poured during December quarter; first cash proceeds anticipated by Feb/March 2026
- Exploration drilling planned, funded by mining proceeds; strategic partner sought for Ellendale Diamond Project
Mining Progress at Edjudina
Gibb River Diamonds Limited (ASX – GIB) has reported steady progress at its Edjudina Gold Project in Western Australia during the December 2025 quarter. Mining operations at the Neta Prospect, managed through a 50/50 joint venture with BML Ventures Pty Ltd, continued with 146,108 tonnes of treatable material mined. The mining contractor BML is responsible for all capital and operating costs, limiting Gibb River’s financial exposure while sharing profits equally once costs are covered.
Ore processing agreements were executed for two nearby mills – 100,000 tonnes at the Lakewood Mill near Kalgoorlie and 30,000 tonnes at the Three Mile Hill Mill near Coolgardie. During the quarter, 11,017 dry metric tonnes were milled at Lakewood, with processing at Three Mile Hill commencing shortly after the quarter ended. As of 31 December, significant stockpiles remained on site, with haulage operations ongoing.
Incident Management and Safety
The quarter was marked by a minor but notable safety incident when a section of the eastern pit wall failed on 30 November 2025, partially blocking the main ramp. Importantly, no injuries or equipment damage occurred. The incident was promptly reported to the WA Mines Department, followed by a geotechnical assessment and implementation of mitigation measures. Mining resumed safely at a reduced rate, demonstrating the JV’s commitment to operational safety and professionalism.
Financial and Operational Outlook
No gold was poured during the December quarter, with production and processing data still being reconciled. However, Gibb River anticipates receiving its first cash proceeds from the Neta mining operations by February or March 2026. Notably, there are no forward sales agreements in place, meaning all production will be sold on the spot gold market after refining, exposing the company to prevailing market prices.
Financially, the company reported net cash outflows from operations and financing activities, with cash reserves standing at AUD 270,000 at quarter’s end. Directors have voluntarily paused their fees to conserve funds until mining profits materialize, reflecting prudent financial management during this critical phase.
Future Exploration and Project Development
Looking ahead, Gibb River plans to fund exploration drilling on the recently acquired mining lease M31/481, adjacent to the Neta Prospect, using proceeds from mining operations. This area is historically under-explored but hosts significant past workings dating back to the late 19th century, suggesting promising potential.
Separately, the company is actively seeking a strategic partner to advance its Ellendale Diamond Project in the Kimberley region of WA. With heritage clearances secured, Gibb River aims to re-establish diamond production, leveraging its 100% ownership and existing mining leases.
A Milestone Achieved
The December quarter represents a milestone for Gibb River Diamonds, marking the transition from exploration and permitting to active mining and ore processing. The company’s ability to navigate regulatory, operational, and financial challenges with limited capital underscores its resilience and strategic focus. Investors will be watching closely as first revenues flow and further exploration results emerge.
Bottom Line?
As Gibb River Diamonds moves from mining to cash flow, the market awaits proof of sustainable profitability and exploration success.
Questions in the middle?
- How will spot gold price fluctuations impact Gibb River’s revenue and profit margins?
- What are the detailed outcomes and timelines for the planned exploration drilling near Neta?
- Will Gibb River secure a strategic partner soon to advance the Ellendale Diamond Project?