GIB Completes 2,246 Metres of Grade Control Drilling at Neta Prospect

Progress at Neta Prospect

Gibb River Diamonds Limited (ASX – GIB) has taken a significant step forward in developing its Edjudina Gold Project in Western Australia by completing Phase 1 of its grade control reverse circulation (RC) drilling program at the Neta Prospect. The initial drilling phase covered 2,246 metres and aims to provide detailed information to support upcoming mining activities.

This drilling is a critical precursor to open pit mining, designed to refine the understanding of ore grades and distribution within the deposit. The results from Phase 1 are pending and will inform the design and execution of a Phase 2 drilling program, which is expected to commence shortly.

Strategic Partnership with BML Ventures

Importantly, the drilling and subsequent mining development are being conducted and financed by BML Ventures Pty Ltd, a private mining contractor. Under the terms of their agreement, BML assumes all capital and operating costs, effectively insulating Gibb River Diamonds from direct financial risk during this stage. This arrangement allows GIB to advance the project with minimal capital outlay while retaining a 50% share of net surplus cash generated from mining operations.

BML’s responsibilities include all mining activities and the delivery of mineralised material to nearby gold processing plants. The partnership structure reflects a cautious yet opportunistic approach by GIB, leveraging external expertise and funding to unlock value from the Edjudina asset.

Regulatory and Market Outlook

The company is currently awaiting the grant of a Mining Proposal permit from the Western Australian Mines Department, a necessary regulatory approval to commence mining. GIB is cautiously optimistic that this permit will be granted in time to allow mining to start as early as August 2025, contingent on BML’s decision to proceed.

With no forward sales contracts in place, all gold production from Neta will be sold into the spot market, exposing the operation to prevailing gold prices but also allowing flexibility to capitalise on market conditions. The Neta Prospect itself boasts an Indicated and Inferred JORC Resource of 378,000 tonnes at 1.9 grams per tonne for approximately 24,000 ounces of gold, including a higher confidence Indicated Resource of 110,000 tonnes at 2.2 grams per tonne for 8,000 ounces.

Looking Ahead

This drilling milestone marks an important phase in the Edjudina Project’s development, signalling progress towards operational mining with limited financial exposure for GIB. The company’s strategy of partnering with BML Ventures to manage mining risks while retaining upside potential could serve as a model for advancing other projects in its portfolio.

Investors and observers will be watching closely for the release of drilling results and the outcome of the mining permit application, both of which will be pivotal in determining the project’s near-term trajectory.