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GIB - Gibb River Diamonds

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Well done @finicky

Timing is everything.

gg
 
At least GIB isn't down today, albeit the usual paltry volume.
Today's announcement encourages us to believe the N.T phosphate project is still alive. We're required to assume the new tenements aren't window dressing to stimulate the share price.
They must have held the project tenements for well over 10 years since their jorc P2O5 resource was in 2012. Nothing's happened towards commercialisation since that time. They've spent $10m on it in addition to 1960's historical drilling by others. The only reason a funding partner might be more attracted now is the greatly improved rock phosphate price I guess.

Held

 
A link from the article that Dona provided. I wonder why phosphate has come into structural undersupply around the same time as nat gas reliant nitrogenous fertilizer?
With billions of tonnes of phosphate for fertiliser, can Australia 'seize the moment'?

I'm not highly convinced that Gibb will make something out of it - it's held the asset for a long time. What I've liked about GIB is they have a few separate irons in the fire for a low capitalised stock and it will only take one to strike for the s.p to go off - so a good roughie punt to me. WRT Highland Plains phosphate they seem to think there's a hope of some deal down the track with New Century Resources who own the nearby old Century Zinc Mine processing plant. New Century is currently 'mining' the old tailings dam and this project is only short term - like out to 2024 maybe. In addition to the processing infrastructure New Century own a 300km slurry pipeline that takes liquefied zinc product to Port Karumba and Gibb's own phosphate scheme is for a slurry line to a port.

 
My only interest in Burgundy Diamond Mines (BDM) is that Gibb (GIB) is a shareholder via Gibb's 3 part option sale of the Ellendale diamond project to BDM. It seems Ellendale is looking positive with its first cut yellow diamond produced during early ramp up stage - piccy below. Great for GIB because it makes the actioning on the third and final option more likely March next year, bringing in more cash and BDM shares to GIB.

Held

The BDM daily chart has made a break to a higher high (note this is not the GIB chart)



 
Well here's hoping.
Burgundy (BDM) will have to bite the bullet soon (Mar 23) and either exercise or walk away from its option agreement to buy Gibb's Ellendale diamond project.
From the article linked below it appears BDM has its sights on a bigger game but it doesn't follow that it won't fold Ellendale in as well. Would mean another 7m BDM shares and $4m cash infused into GIB if the option is exercised. Gibb's market cap is $13m and it does hold other assets.

"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."

Meet the ASX’s biggest diamond company

Burgundy Diamond Mines is set to acquire the world-class Ekati diamond mine from Arctic Canadian Holdings for a cold $209 million.
www.australianmining.com.au
 
Nope - BDM not to proceed with exercising the option on Ellendale. Gibb management spin is that it's "exciting". Indisputable though is the 9m shares in BDM that GIB retains and should provide some handy cash.
GIB also announcing that a consultant is currently working on a resource estimation for the strategically located Edjudina gold deposit in the Eastern Kalgoorlie goldfields.

Held




 
Hmm, sounds mildly interesting for holders. Corporate enquiries about the Edjudina Gold Project. MRE requires a bit of completion work for the needs of the geological services consultant, but is it a hint that further down in the announcement GIB mentions the haul road to Northern Star's Carosue Dam operations passes through its tenement? Maybe not - but Carosue Dam is only 45kms away.
Within the Edjudina Project, GIB's 'Neta Prospect' discovery hole was 36m at 4.0 g/t Au from 4 metres and it's part of a multi-kilometre mineralised trend pockmarked with historic diggings.

Held

 
Woohoo, GIB up 10% following a similar rise yesterday. Only another 18% and I'll be break even. Or do I have stars in my eyes.

From the announcement yesterday:


Held
 
GIB got a rocket today, up 48%

"Gibb River Diamonds (ASX:GIB) announces the grant of 3 mining leases, which are the three key licences at the heart of developing the Ellendale Diamond Project. The grant of these mining leases is an important milestone in re-establishing diamond production at Ellendale. Shares are trading 32 per cent higher at 3.3 cents."

Holding at 30% loss
Trading stance

WEEKLY
 
GIB up another 32% today.
Have to go back to October 2021 to see comparable daily volume in illiquid GIB. Mind you, that peak of volume back then signalled a top.
Actually would have had the option to bail at a small profit if I'd risen from bed earlier. Lot of disadvantages to being a total night owl.

Hoping they can monetise the Edjudina Gold project at some point to fund diamond mining at Ellendale.

Not a serious stock in my opinion now and would be ridiculously risky to buy near term after this price rise. Longer term weekly chart might be worth a look for mad long term speculators, but much better out there I'm sure.

Held
Trading stance

DAILY
 
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