The Ellendale deposit will once again change hands after Burgundy Diamond Mines elected not to pursue its options on the site.
The Australian mine, known for producing fancy yellows, will instead revert back to Gibb River Diamonds, that company said Monday. In 2021, Gibb sold Ellendale and the adjacent deposit, Blina, to Burgundy in a deal structured as a multipart option plan set to take place over three years. At the time, Gibb noted it planned to concentrate on its gold projects.
Meanwhile, Burgundy opted out of the deal following its recent acquisition of the Ekati mine in Canada from Arctic Canadian Diamond Company and its intention to focus on that asset.
Ellendale was due to begin commercial production at the end of last year. Gibb did not disclose whether there was currently output from the mine.
Gibb, known then as POZ Minerals, bought Ellendale in 2018 after the Western Australian government called for investors. The authorities had taken over the deposit after former owner Kimberley Diamonds ran up a high debt that forced it to close the mine in 2015.
“The project has been returned to Gibb,” the company noted, stating it was “very excited by this outcome, and believes Ellendale…has excellent potential as a company-making stand-alone diamond development project. The company very much looks forward to progressing its plans for the next phase of development at Ellendale.”
Image: Diamonds from the Ellendale mine. (Gibb River Diamonds)