Australia’s Gibb River Diamonds (ASX: GIB) is moving closer to restarting the dormant Ellendale diamond mine in West Kimberley after securing three critical mining leases for the project.
These permits represent a significant step in reviving Ellendale, once a major diamond producer known for its fancy yellow diamonds, accounting for over 50% of the global supply until its closure in 2015.
The leases encompass the primary sections of the historic workings at the E4 and E9 pipes, as well as the extensively bulk-sampled E12 alluvials and their access, according to Gibb River.
As part of the reopening process, Gibb River is set to conduct a heritage clearance survey in the first week of June. The company is also exploring various financing options for the project, including debt, equity, partnerships, joint ventures, and government funding schemes such as the North Australian Infrastructure Fund (NAIF).
Gibb River Diamonds became the sole owner of Ellendale in March last year after acquiring the project from Burgundy Diamonds. The announcement of the leases caused shares in the company to surge, closing 48% higher at 37 Australian cents each, giving Gibb River Diamonds a market capitalization of A$6.52 million ($4.4 million).
