08/10/2020 - 13:00

Gibb River shares soar on gold discovery

08/10/2020 - 13:00

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Gibb River Diamonds has announced a major discovery at its new gold project in Western Australia, sending its shares up by more than 300 per cent.

A second drilling program at Edjudina will focus on the new Neta Lodes discovery. Photo: Gibb River Diamonds

Gibb River Diamonds has announced a major discovery at its new gold project in Western Australia, sending its shares up by more than 300 per cent.

The news comes about three months after Gibb made its first gold acquisition, securing the option to purchase the Edjudina project from Nexus Metals.

Edjudina sits in the eastern Goldfields, and has been explored during the past 120 years, with numerous programs being undertaken at the Neta goldmine.

Gibb recently completed a maiden drill program at Edjudina, which confirmed a high-grade shallow gold discovery at the Neta prospect.

The news sent Gibb’s shares up by as much as 322 per cent, with the company trading at 19 cents at 11:30am AEDT.

Drill intersections include 36 metres at 3.97 grams per tonne of gold, 18 metres at 3.1g/t of gold, 24 metres at 1.4g/t Au and eight metres at 2.9g/t.

Gibb said the extreme strike length of historic mining, 13 kilometres, presented issues with the selection and prioritisation of target areas.

The best of past production was from the Neta goldmine, which delivered 16,710 ounces at a grade of 47.4g/t gold, mostly in the early 1900s.

But Gibb said the latest discovery, named the Neta Lodes, was markedly different from the previously mined Neta.

“To make a major new discovery on this field, including wide intersections of high grade mineralisation from surface, in under three months from acquiring the project option, is a testament to the hard work and abilities of the team at GIB,” the company said.

Gibb is planning a second drilling program, which will focus on the new Neta Lodes discovery.

“The company is very excited by this discovery and is looking forward to further drill testing at Edjudina,” Gibb said.

Its shares were up 244 per cent at 3:05pm AEDT to trade at 16 cents.

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