Australia’s Gibb River Diamonds is one step closer to restarting the dormant yellow diamond mine called Ellendale in West Kimberley, Australia, after securing three mining leases essential to the project.
Reactivation of the yellow diamond mine
These permits represent a crucial breakthrough in reactivating production at Ellendale, a mine noted for its high diamond production that had the distinction of being a major source of fancy yellow diamonds, contributing more than 50% of annual global supply until its closure in 2015.
The leases include the main areas of the historic workings in the E4 and E9 pipelines, plus the E12 alluvials, which have been the subject of extensive bulk sampling and access, Gibb River said.
As part of the preparations for the reopening, Gibb River has announced that it will conduct a heritage cleanup survey in the first week of June. The company is also evaluating various financing options for mining projects. These include debt, equity, joint ventures, joint venture partners, a collaboration with the Northern Australia Infrastructure Fund (NAIF) and other available government financing schemes.
Impact on the stock market
The exploration and development company became the sole owner of Ellendale in March last year after acquiring the Burgundy Diamonds project.
The shares of Gibb River Diamonds rose sharply on the news, closing up 48% at 37 Australian cents per share. This brings the company’s market capitalization to A$6.52 million (US$4.4 million).
The reopening of the Ellendale mine promises to revitalize the region’s diamond industry and mining sector and could also generate significant economic benefits for local communities, creating new jobs and stimulating regional development. In addition, the renewed interest in yellow diamonds could mark a resurgence of demand for them in the global market.
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Source: mining
Photo: Shutterstock
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