Gibb River Diamonds Secures $7M Profit from Neta JV and Advances Edjudina Drilling

Neta JV Delivers Solid Gold Production and Cash Flow

Gibb River Diamonds (ASX:GIB) has wrapped up mining and processing at the Neta joint venture, part of its Edjudina Gold Project in Western Australia's Eastern Goldfields. The operation, managed by BML Ventures Pty Ltd under a 50/50 profit-sharing JV, produced 5,267.9 ounces of gold during the quarter, generating nearly AUD 38 million in sales proceeds at an average price of $7,209.60 per ounce. This milestone excludes the final ~9,000 dry metric tonnes of lower grade ore processed at the Greenfields Mill, with results pending.

Reflecting the project's profitability, GIB received a $7 million payment plus $700,000 GST from BML, representing its half-share of JV profits to date. The company anticipates a further, albeit smaller, cash distribution once the Greenfields milling campaign's final costs and profits are reconciled. This cash inflow underscores the JV’s ability to generate significant returns without requiring additional funding or equity dilution for GIB.

Mining and processing campaigns were split across three facilities: Three Mile Hill near Coolgardie, Lakewood near Kalgoorlie, and Greenfields Mill. The Three Mile Hill campaign processed 33,529 tonnes yielding 1,792 ounces with a 90.7% recovery rate, while Lakewood processed 95,256 tonnes for 3,475.9 ounces at an 88% recovery. The Greenfields campaign, involving lower grade ore, completed processing in late January, with final production numbers expected by the end of June.

Exploration Advances on Newly Acquired Lease M31/481

Following the quarter, GIB conducted a Phase 1 aircore drilling program on mining lease M31/481, acquired from Hawthorn Resources and situated near the Neta Gold Mine. Despite adverse weather causing early rig demobilisation, 27 holes totaling 830 meters were drilled, testing most planned targets. Assay results are awaited and will guide a Phase 2 program to follow up promising mineralisation and cover remaining targets.

M31/481 hosts extensive historic gold workings dating back to 1897, including significant mines such as Neta Junction and Senate, with the latter featuring a shaft depth of 91 meters. This drilling effort, funded from Neta JV proceeds, reflects GIB’s strategy to leverage cash flow into resource growth at Edjudina.

Financial Position and Strategic Outlook

GIB’s prudent financial management is evident in its strong cash position of $7.76 million at quarter-end, supported by net operating cash inflows of $7.485 million. The company operates with a tight capital structure of approximately 214.5 million shares on issue and no recent equity raisings, positioning it well for further exploration and potential acquisitions in the Western Australian gold sector.

Meanwhile, the Ellendale Diamond Project in the West Kimberley remains under review amid ongoing challenges in the global diamond market. Rehabilitation works at Edjudina are planned to follow mining completion. In line with its gold-focused strategy, GIB’s board is considering a company name change to better reflect its evolving identity while retaining the ‘GIB’ ASX code.

These developments build on recent milestones, including the receipt of the initial $7 million profit share from the Neta JV and the commencement of exploration drilling on M31/481, funded by mining proceeds. The company’s ability to generate cash from operations without dilution is a notable achievement in the current mining environment. Investors will be keen to see how forthcoming assay results and Greenfields Mill production figures influence GIB’s near-term growth trajectory.

GIB’s operational progress and financial discipline underscore a transition from diamond exploration towards a gold-centric business model, raising questions about how the company will balance exploration, development, and potential acquisitions in a competitive WA gold market.

With a strong cash buffer and ongoing exploration activity, GIB’s next key catalysts will be the assay results from M31/481 and the finalised gold production figures from the Greenfields Mill, both expected in the coming quarter.

These updates follow a series of recent reports detailing GIB’s operational ramp-up and cash flow generation at Edjudina, including the $7M profit distribution and gold sales nearing $38M, reinforcing the company’s emerging profile as a gold producer.