A$433,000 cash and 191.3 wet tonnes shape Great Divide's quarter

Challenger production rises as cash runway tightens

Great Divide Mining Ltd (ASX:GDM) is producing more concentrate at its Challenger Gold Mine, but the September quarter also exposed the financial pressure behind the ramp-up. Challenger produced 191.3 wet metric tonnes of gold concentrate and dispatched 195.8 wet metric tonnes in eight shipments, while Great Divide ended the quarter with A$433,000 in cash and an estimated 0.9 quarters of funding under the Appendix 5B calculation.

September was the strongest production month, with 81.1 wet metric tonnes produced compared with 62.1 wet tonnes in July and 48.1 wet tonnes in August. Plant feed rates reached 20 to 24 tonnes per hour during September, up from 19 to 20 tonnes per hour in July and 17 to 19 tonnes per hour in August, approaching the plant's 25-tonne-per-hour nameplate capacity. Planned maintenance, upgrades and operator training affected the quarter, according to the report.

The company said its immediate priorities are to stabilise operating performance, improve plant availability and expand concentrate shipments under its MRI Trading AG offtake agreement. That follows the Challenger production launch, when the company began production and concentrate sales at the mine.

Operating cash flow remains negative

Cash receipts from concentrate sales totalled A$1.027 million for the quarter, but operating activities still consumed A$443,000. Investing outflows were a further A$231,000, including A$163,000 in development expenditure and A$46,000 for exploration and evaluation, while the exercise of 1.5 million options at A$0.30 provided A$450,000 in financing proceeds. Cash therefore fell from A$657,000 at the end of June to A$433,000 at 30 September.

Great Divide said it does not expect current net operating cash flows to continue unchanged, anticipating improvement as production increases. It has not taken formal steps to raise capital, but said it is assessing funding options and could consider an equity raising if required. The runway estimate is dependent on the production ramp-up, gold recoveries and other operating variables; the company also said it can reduce operating and discretionary expenditure.

Coonambula moves towards resource definition

At the 55%-owned Coonambula Antimony-Gold Project in Queensland, final assays from Dart Mining NL's 41-hole, approximately 4,100-metre programme confirmed gold mineralisation across the full 730 metres of strike drilled. The system remains open along strike and at depth. Selected results included 12 metres at 1.03 g/t gold and 1.01 g/t silver from 128 metres in hole CBADD037, although the reported intervals are down-hole lengths and true widths have not been established.

“Cross section through CBADD037 showing assays and interpreted mineralised zones. Source: the same Dart Mining announcement, Figure 3.”

“Long section through the drilling showing gold grades intercepted to date and interpretation of high-grade antimony and silver zones.”

Caption and image © Great Divide Mining Ltd. From “Quarterly Activities and Cashflow Reports”, 30 Oct 2026.

Higher-grade antimony and silver occur in discrete shoot-like zones within the broader gold-bearing system, while antimony grades in the final batch were generally below 0.1% Sb. Dart Mining has earned a 45% interest and may earn a further 6% subject to completing the remaining resource-reporting milestones. The joint venture's next steps are metallurgical testing, three-dimensional modelling and preparation of a maiden JORC Mineral Resource Estimate. The results extend the thread from the Coonambula drilling campaign, which previously confirmed mineralisation over the same 730-metre strike.

Adelong resource restated without new drilling

Great Divide also restated the Adelong Project's previously estimated resources at approximately 1.55 million tonnes grading 3.41 g/t gold for 169,700 ounces of contained gold. Measured and Indicated resources account for 92,500 ounces, or about 55% of the total. The figures span Challenger, Currajong, Caledonian and Donkey Hill and were prepared from estimates dating to 2021, with Caledonian updated in 2022.

“Challenger Gold Mine location and infrastructure”

“Waste Rock Recovery and Rehabilitation”

Caption and image © Great Divide Mining Ltd. From “Quarterly Activities and Cashflow Reports”, 30 Oct 2026.

The restatement is not a new resource estimate and included no new drilling or exploration data. The company cautioned that historical voids could not be reliably excluded at Currajong, Caledonian and Donkey Hill, and that Mineral Resources are not Ore Reserves. Great Divide completed recovery of mineralised waste rock from former Currajong Mine dumps during the quarter and began rehabilitation by re-contouring and seeding the areas.

GST indemnity claim remains unresolved

The company continued Supreme Court of New South Wales proceedings seeking A$1,056,217.96, plus accrued interest, penalties and other charges, from Amara Minerals in relation to a pre-acquisition GST liability assessed against Challenger Mines. Alternatively, Great Divide is seeking a declaration that Amara must indemnify it, along with interest and costs. Amara was granted leave to file a cross-claim, and the matter was listed for directions on 2 October 2026.

The December quarter will test whether higher Challenger output can translate into enough cash generation to reduce the funding pressure. Production, shipment regularity, recoveries and the timing of any financing decision now sit alongside Coonambula's metallurgical work and resource modelling as the company's key near-term markers.