Gibb River Diamonds is set to acquire its first gold asset after securing the option to buy Nexus Minerals’ high-grade Edjudina gold project in the Eastern Goldfields.
The 146 square kilometre project is 90 per cent-owned by Nexus subsidiary Nexus Mt Celia, and 10 per cent owned by private group Coxsrocks.
The six-month option costs $110,000 and can be exercised for $330,000 in cash, plus 5.5 million Gibb River shares and 5.5 million 9 cent options that will expire in November 2022.
Gibb, currently pursuing the development of its Ellendale Diamond project in the Kimberley, said the Edjudina acquisition provided excellent project and commodity diversification, and was consistent with the company’s ongoing involvement in the gold sector.
Gibb holds 1 per cent net smelter royalties over three Western Australian gold projects: the Bulgera project, owned by Norwest Minerals, and Accelerate Resources’ Comet and Mount Monger projects.
The Edjudina project sits 145km north-east of Kalgoorlie and is close to Saracen Mineral Holdings’ Carosue Dam operations.
“The company believes the Edjudina project is exceptionally prospective for high-grade vein gold discoveries, with further potential for bulk tonnage open pit targets,” Gibb said.
“Gibb will be pursuing an aggressive program of exploration drilling in order to follow up the best targets.”
West Perth-based Gibb said it had already completed a field inspection, with a further site visit planned to assess specific drill targets.
Shares in the company were up 8.9 per cent at 11:45am AEST to trade at 4.9 cents.