Figure 1: Gibb River Diamond Project Tenure & Location Map
1.0 Ellendale Diamond Project Summary
The Company announced on 24 March 2021 the sale of a two year Option agreement with ASX listed Burgundy Diamond Mines Limited (ASX: BDM), which confers the right for Burgundy to acquire 100% of the Ellendale Diamond Project, WA.
This Option covers all tenements pegged by GIB in the Ellendale Diamond Province, including over the historic Ellendale Diamond Mine and Blina Diamond Project and the associated data. Burgundy is a Western Australian based company with a highly-credentialed management team, focused on global diamond exploration and project development.
In March 2022, GIB received the second payment under the Ellendale Option Agreement with Burgundy Diamond Mines Limited (ASX: BDM). This payment was one million dollars in cash (plus GST) and five million fully paid ordinary shares in BDM.
The third Payment to GIB (and to exercise the Option), is due on 23 March 2023. This payment (at BDM’s election) will result in BDM purchasing the Ellendale Diamond Project. This third payment consists of BDM paying to GIB A$4 million in cash and 7 million fully paid ordinary shares in BDM. Should the Option be exercised, GIB will retain a 1.5% gross revenue royalty.
The Ellendale Project has been one of the world’s foremost diamond producers with past production of approximately 1.3 million carats. This included the annual supply of over 50% of the world’s Fancy Yellow diamonds, which were the subject of a special marketing agreement between the former operator and Tiffany & Co.
With the Blina Alluvial Targets fully permitted for mining and ‘shovel ready’ and assessment of the other Ellendale prospects and former mining operations already underway, the Company is in an excellent position to set up an immediate diamond pipeline of development projects.
For further information regarding grades and historical production from the Blina Project alluvials1,2&3, click here, click here and click here
1Further detailed information including the Table 1 (JORC Code, 2012 Edition) and references are available on the GIB ASX Release dated 9 October 2015, click here
2Blina Diamond Project, Gamechanger GPR Survey; GIB ASX Release dated 18 October 2017, click here
3Trenching Discovers New Gravel Targets at Blina; GIB ASX Release dated 6 August 2018, click here
4POZ to Bid for the Ellendale Diamond Mine; GIB ASX Release dated 4 September 2018, click here
GIB Secures Ellendale Diamond Mine Leases; GIB ASX Release dated 23 December 2019, click here
Bulletin 132 (Geological Survey of Western Australia); The kimberlites and lamproites of Western Australia by A.L. Jaques, J.D. Lewis and C.B. Smith.
The information in this report that relates to current and previously reported exploration results and the JORC Exploration Target is based on information compiled by Mr. Jim Richards who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr. Richards is a Director of GIB River Diamonds Limited. Mr. Richards has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Richards consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.