Gibb River Diamonds (ASX:GIB) announced a financial milestone, receiving a $7 million cash payment (plus GST) from its joint venture partner, BML Ventures.
The substantial distribution represents GIB’s 50% share of profits from the Neta mining joint venture, following the production of over 5,267 ounces of gold.
While this payment marks a major win for the company, further cash distributions are expected once remaining rehabilitation costs are finalised and results from the Greenfields milling campaign—involving approximately 9,000 tonnes of lower-grade ore—are reconciled.
The company has contracted Kalgoorlie-based GYRO Drilling to commence a Phase 1 aircore drilling program at the Edjudina Gold Project in early April.
The 2,000-metre campaign is specifically targeting the highly prospective mining lease M31/481, which is held 100% by GIB and sits outside the existing BML joint venture.
The strategic importance of the lease cannot be overstated; its northern boundary is located just 60m from the recently mined Neta Gold Mine.
The area is steeped in history, featuring old gold workings dating back to 1897, including the historic 91-metre-deep Senate mineshaft.
At the time of reporting, Gibb River Diamonds’ share price was $0.058.