Gibb River Diamonds secures key mining lease for Edjudina Gold Project, accelerating gold production plans

Gibb River Diamonds Limited has achieved a major milestone in advancing its Edjudina Gold Project with the approval of mining lease M31/495. Granted by the Western Australian Mines Department, this lease represents a critical step forward for the company as it moves toward the development and potential monetisation of the Neta Resource, a significant gold deposit within the project.

The mining lease approval paves the way for Gibb River Diamonds to push ahead with its objective of mining or commercially leveraging the Neta Resource, which holds a JORC Indicated and Inferred Resource of 378,000 tonnes at 1.9g/t for 24,000 ounces of gold. Within this deposit, an Indicated Resource of 110,000 tonnes at 2.2g/t for 8,000 ounces of gold highlights the high-grade nature of the prospect. This development reinforces the company’s commitment to unlocking the full potential of the Edjudina Gold Project, which is situated in one of Western Australia‘s most historically productive gold regions.

What makes the Edjudina Gold Project a strategic asset for Gibb River Diamonds?

Located 145 kilometres northeast of Kalgoorlie, the Edjudina Gold Project lies at the heart of the Eastern Goldfields of Western Australia, a region known for its extensive gold mining history. The project spans multiple parallel lines of nearly continuous historic gold workings across a 13-kilometre strike, where high-grade veins have historically been exploited.

A significant advantage of the project is its proximity to existing infrastructure. A haul road operated by Northern Star Resources Limited runs through the northern part of the project and provides direct access to the Carosue Dam milling complex, located 45 kilometres south. This logistical benefit enhances the project’s feasibility, potentially allowing for cost-effective ore transport and processing through third-party facilities.

The approval of mining lease M31/495 strengthens the project’s potential for near-term production, with Gibb River Diamonds now actively progressing its next steps toward operational readiness.

What are the next steps following the mining lease approval?

With the mining lease approval now secured, Gibb River Diamonds is focusing on obtaining the final regulatory and operational clearances needed to commence gold mining operations at the Neta Gold Prospect.

The company is currently preparing a Mining Proposal, a critical document that outlines its operational plans, environmental impact assessments, and compliance with regulatory frameworks. This proposal consolidates data from various geological and technical studies conducted in recent months. Once finalised, it will be submitted to the Western Australian Mines Department for approval.

Additionally, the company has compiled Aboriginal heritage survey documentation, which has been submitted to the WTAC Native Title Group. A formal heritage survey is expected to take place soon, ensuring that cultural and environmental considerations are thoroughly addressed before mining operations commence.

The finalisation of these regulatory requirements will be a key determinant in the project’s timeline, allowing Gibb River Diamonds to move forward with its planned mine and haul operation, leveraging toll treatment at a third-party processing facility.

How will toll treatment and strategic partnerships impact production?

To accelerate the transition from exploration to production, Gibb River Diamonds is engaged in discussions with a private West Australian group specialising in mine development, haulage, and toll milling. Toll treatment—where ore is processed at an existing facility rather than building an on-site processing plant—is a cost-effective approach that enables junior mining companies to monetise deposits more efficiently.

Given the Edjudina Gold Project’s proximity to established infrastructure, toll treatment offers a practical solution for expediting gold mining operations. The nearby Carosue Dam milling complex, accessible via Northern Star Resources’ haul road, presents a viable processing option, subject to commercial agreements.

These discussions align with Gibb River Diamonds’ strategy to unlock value from the Neta Resource while maintaining capital efficiency. By leveraging third-party milling, the company can minimise upfront costs, optimise operational timelines, and potentially achieve early cash flow from the project.

What does the mining lease approval mean for investors and the gold sector?

The approval of mining lease M31/495 represents more than just a regulatory milestone—it signals a significant step towards production for Gibb River Diamonds and reinforces the attractiveness of the Edjudina Gold Project within the broader gold mining sector.

With global gold prices maintaining strong levels amid economic uncertainty, investor interest in high-quality gold assets remains high. The ability to advance a JORC-compliant gold resource towards production in a well-established mining jurisdiction like Western Australia enhances the project’s commercial appeal.

As Gibb River Diamonds progresses towards gold mining operations, the focus will be on securing final approvals, strengthening strategic partnerships, and executing its development plan efficiently. The successful implementation of toll treatment agreements and mining operations could position the Edjudina Gold Project as a valuable contributor to the company’s growth strategy in the gold sector.

With gold mining operations on the horizon, the company’s next steps will be closely watched by investors, industry stakeholders, and mining professionals alike.