Shares in Gibb River Diamonds (ASX:GIB) spiked almost 80% today after the company was granted three mining licences that are key to restarting the Ellendale Diamond Project in Western Australia.
The three mining leases cover the main portions of the historic workings at the E4 and E9 pipes, together with the extensively bulk-sampled E12 alluvials and their access.
A heritage survey is scheduled to be conducted with the Bunuba Traditional Owners in the first week of June 2024. The survey will be undertaken at the M04/477 licence.
Upon completion, Gibb River will conduct a resource estimate for the E9 West alluvials, which the company says are the highest grade shallow alluvials just north of the E9 pit and an “excellent” target for a start to mining.
Permitting work for mining operations is also ongoing, while Gibb River seeks funding options.
Since reclaiming ownership of Ellendale from Burgundy Diamonds in March 2023, Gibb River has been working towards re-establishing diamond production at the project.
The company is considering building an initial mining operation at the Lights Stockpile at E9.
The previously operating Ellendale mine lies in the Kimberley Region of Western Australia and was once the world’s largest diamond producer, supplying over 50% of the world’s Fancy Yellow diamonds.
Mining was halted at the operation in July 2015 when then-owner Kimberley Diamond Company went into administration and subsequent liquidation.
Write to Aaliyah Rogan at Mining.com.au
Images: Gibb River Diamonds
