Gibb River Diamonds looks to cash in on gold at Edjudina
Gibb River Diamonds has signed a contract mining agreement with Kalgoorlie-Boulder firm BML Ventures to mine an open pit at its Edjudina gold project north-east of Kalgoorlie-Boulder.
Gibb River told the Australian Securities Exchange on Wednesday the focus would be on realising the commercial potential of the Neta deposit.
The company said Neta had a mineral resource estimate of 378,000 tonnes at 1.9g per tonne for 24,000 ounces of gold, with 110,000t at 2.2g/t for 8000oz in the indicated category.
Gibb River said BML would be responsible for all mining-related capital and working capital costs, with Gibb River providing no capital for the project.
'BML's role is to cover all aspects of mining and deliver the mineralised material to one of a number of nearby gold processing plants,' Gibb River said.
'Once project expenses have been paid, with costs being reimbursed from operational cash flow, the net surplus cash will be split 50:50 between (Gibb River) and BML.'
The companies are working together to obtain remaining approvals, and aiming to start mining this year — potentially as early as August.
Gibb River said processing arrangements still needed to be established with one of the third-party processing plants in the region.
'There are no forward sales locked in for this mining operation and all production will be sold into the spot gold market,' Gibb River said.
Gibb River acquired Edjudina in a cash-and-scrip deal in 2020, and at the time said historic production figures for the entire Edjudina field up to 1921 were 39,476oz at 41.0g/t.
The company also has the Ellendale diamond project in the Kimberley, and in its most recent quarterly report said it was seeking a strategic partner to progress the project, with the ultimate aim being to re-establish diamond production at the site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
2 days ago
- West Australian
Auric lights fuse on first blast at WA Munda gold mine
Auric Mining has lit the fuse on the first blast at the company's Munda gold mine near Widgiemooltha in Western Australia's Goldfields region, marking a major milestone as it shifts from planning to production amid a buoyant gold market. The first blast was fired earlier this week at Auric's starter pit, just weeks after excavation began, clearing the way for full-scale mining. The company says it has already managed to shift 70,000 bank cubic metres (BCM) of material in the past month from a pit design encompassing 380,000BCM. Since much of the initial material has been free-digging, with no need for blasting, Auric would likely have scored an early cost-saving bonus before work on harder rock got underway. Auric is using a dry-hire fleet on site that includes a 125-tonne excavator and four 40t 'Moxi' dump trucks, along with ancillary gear. Kalgoorlie-based Total Drilling Services is handling the grade control, blast-hole drilling and blast supervision to ensure operations are managed with experienced local crews. Auric expects to extract 125,000t of ore grading 1.8 grams per tonne (g/t) gold from the starter pit, most of which will come towards the end of the initial mining at the base of the pit. The company is eyeing a maiden 6100-ounce gold haul from early mining at an all-in sustaining cost of just $2635 per ounce. When it first crunched the numbers, Auric based its projections on a conservative $3500 gold price - enough to deliver a tidy $5.3 million in free cash. With gold now trading at a blistering $5100 an ounce, the upside is looking far juicier, setting the stage for a much bigger payday from Munda's opening act. The initial pit, which is part of a larger resource, is expected to be wrapped up by October. Beneath the surface, Munda is also flexing some serious gold muscle. At a 0.5g/t cut-off, the deposit contains 3.65 million tonnes of ore grading at 1.23g/t for a solid 145,000 ounces of gold. If the cut-off is dropped to 0.2g/t, the resource swells to 189,000 ounces across the indicated and inferred categories. A 2023 scoping study by Kalgoorlie-based Minecomp ran the ruler over the broader Munda project and liked what it saw. Using a now-outdated base-case gold price of $2600 per ounce, the numbers pointed to 1.716Mt at an impressive 2.2g/t, which translates to a juicy $76.9 million in undiscounted surplus cash flow. It is anyone's guess what that figure could balloon to in today's hyper-bullish gold price environment. When the first mining phase is complete, Auric plans to finalise detailed plans for a much larger pit development at Munda, which is slated to begin in 2026. The early $6.5 million development cost has been fully funded from gold sales generated by Auric's Jeffreys Find project near Norseman, avoiding the need for further capital raisings or share price dilution. It also kills several other birds with one stone. By removing overburden - with a pre-strip ratio of 7.6:1 - while gold prices are strong, the company says it is likely to cut future mining costs and build resilience into the broader Munda operation against potential market swings. The initial phase will also deliver critical insights into the larger deposit, giving Auric a chance to refine its strategy ahead of scaling up to full production. Meanwhile, work preparing the site for longer-term operations is in full swing. Auric has completed waste dump and run-of-mine pad preparation, setting the scene for efficient ore handling and stockpiling as mining ramps up. Given its proximity to established infrastructure and a gold price that continues to sparkle, Munda is shaping up as a key revenue driver for Auric, especially given its unhedged status, which the company says will give it full exposure to market upside. As the gold price flirts with record territory, it appears Auric's timing couldn't be better. With equipment on the ground, blasting underway and ounces soon to be hauled out of the earth, the company is ticking every box on the path to early cash flow and long-term expansion. Is your ASX-listed company doing something interesting? Contact:
The Age
2 days ago
- The Age
Auric lights fuse on first blast at WA Munda gold mine
Auric Mining has lit the fuse on the first blast at the company's Munda gold mine near Widgiemooltha in Western Australia's Goldfields region, marking a major milestone as it shifts from planning to production amid a buoyant gold market. The first blast was fired earlier this week at Auric's starter pit, just weeks after excavation began, clearing the way for full-scale mining. The company says it has already managed to shift 70,000 bank cubic metres (BCM) of material in the past month from a pit design encompassing 380,000BCM. Since much of the initial material has been free-digging, with no need for blasting, Auric would likely have scored an early cost-saving bonus before work on harder rock got underway. Auric is using a dry-hire fleet on site that includes a 125-tonne excavator and four 40t 'Moxi' dump trucks, along with ancillary gear. Kalgoorlie-based Total Drilling Services is handling the grade control, blast-hole drilling and blast supervision to ensure operations are managed with experienced local crews. 'Mining is in full swing and all activities are progressing as we expected.' Auric Mining managing director Mark English Auric expects to extract 125,000t of ore grading 1.8 grams per tonne (g/t) gold from the starter pit, most of which will come towards the end of the initial mining at the base of the pit. The company is eyeing a maiden 6100-ounce gold haul from early mining at an all-in sustaining cost of just $2635 per ounce. When it first crunched the numbers, Auric based its projections on a conservative $3500 gold price - enough to deliver a tidy $5.3 million in free cash. Auric Mining managing director Mark English said: 'Mining is in full swing and all activities are progressing as we expected. We are achieving our targets and are exactly where we expected to be in the mine development. We are pleased to be monetising our major asset in such a bullish gold market, the timing is excellent. It is a great place to be as an unhedged gold producer.' With gold now trading at a blistering $5100 an ounce, the upside is looking far juicier, setting the stage for a much bigger payday from Munda's opening act.
Daily Telegraph
12-06-2025
- Daily Telegraph
Mr Potato Management wind-up application over tax
Don't miss out on the headlines from Business. Followed categories will be added to My News. The ATO is seeking to wind up a key company in a national fast food group, but it hasn't stopped its glamorous founders from embarking on a tour of Australia. Mr Potato was launched by model Jess Davis, 34, and husband Tyson Hoffman, 30, aka Tyson Finau, who played for the Adelaide 36ers NBL team. Court documents reveal the Deputy Commissioner of Taxation launched Federal Court wind-up action against Mr Potato Management on May 9 and a liquidator consented to take on the company if it was successful. A hearing on the matter has been adjourned to July 4. Earlier this year, former franchisees of the chain revealed they'd had to sell their homes and consider legal action after their stores failed to turn a profit. One claimed to have lost $130,000 in seven months. Meanwhile, Ms Davis and Mr Finau are touring the country in the Mr Potato food truck, having travelled throughout NSW, the Northern Territory and Queensland in the past three months. Jess Davis and Tyson Finau on Mr Potato's Australian Tour. Photo: Contributed The tour is scheduled to finish in Kalgoorlie, WA, in August and is seeking to make a Guinness World Record for the longest distance and most number of stops travelled by a food truck on a single road trip. Disgruntled former franchisees fear the trip is part of a bid to recruit new franchisees to the brand. News Corp has contacted Ms Davis for comment on the tax case. The Mr Potato chain has lost more than half its network in the past two years, with its last Queensland stores, at Mermaid Waters and Broadbeach, closing in February. The chain's Melbourne store, which launched at Highpoint Shopping Centre last year, is no longer operating, while stores at Hyde Park SA and Joondalup WA have also been shuttered. The Mr Potato suggests the group is looking for franchisees to open stores in eight new locations across the country. As the number of franchises boiled down from 13 to six, its high-profile founders were seeking investment in their next project – a luxury eco resort on a remote island in Tonga. Ms Davis, who made a quest to be Miss Universe last year, said Mr Potato adhered to the Australian Franchise Code. Originally published as ATO lodges wind-up application against Mr Potato Management over unpaid taxes
