Australia Sells Ellendale Mining Rights

RAPAPORT... The Western Australian government has invited Gibb RiverDiamonds and India Bore Diamond Holdings to mine at the Ellendale deposit. The companies will pay rental fees on the areas in which they set up operations, rather than owning that portion of the site outright, theDepartment of Mines, Industry Regulation and Safety (DMIRS), told RapaportNews last week. Although DMIRS has already conducted a recent geologicalexploration of the area to confirm there are still diamond prospects, bothcompanies will need to explore the area further, speak with key stakeholders inthe region, and develop mining plans for approval by the state government. "It's not going to happen overnight, but restarting miningoperations at the former Ellendale mine will be a high point in therejuvenation of diamond exploration and mining in the Kimberley [region ofWestern Australia]," Mines and Petroleum Minister Bill Johnston noted. Gibb and Indian Bore will take on Ellendale's E4 and E9pits, and will also have access to storage facilities and infrastructure thatbelonged to previous Ellendale owner Kimberley Diamond Company before it wentinto administration in 2015. Since then, the government has been managing theproperty through its abandoned-mines program. Last year, it announced it wasseeking expressions of interest in the site. Ellendale produced around half of the world's supply of rareyellow diamonds during peak production, and was also the main supplier offancy-yellow diamonds for luxury-jewelry retailer Tiffany & Co. Gibb recently purchased the Blina diamond project, which isadjacent to Ellendale. It is waiting on a final investment of AUD 2.5 million($1.7 million) to begin mining the area. India Bore is a private company,established in 2015 by CEO Peter McNally, a mining executive with over 35 yearsof experience. Image: The Ellendale mine. (The Government of Western Australia, DMIRS)