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Hummingbird’s Mali project on track for construction start

17th April 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – A recent optimisation study has not only expanded the Yanfolila mine plan, but also highlighted robust economics for the development of the one-million-ton-a-year low-cost high-grade gold project, in Mali, says Hummingbird Resources.

The study had defined a path to production, the Aim-listed company noted in an update to shareholders on Friday, adding that the study had reconfirmed that the mine was capable of turning a profit in a varying gold price environment.

“During the first quarter of the year, the company has been highly active at Yanfolila in preparation for imminent mine construction. The robust economics demonstrate a profitable mining operation across numerous price points and there are multiple options to further improve the project economics,” CEO Dan Betts said.

“We are confident we have a clear path to low-cost gold production of an initial 100 000 oz for the first year and generating first revenues for the company,” he added.

With the gold price currently at about $1 250/oz, the study results outlined a net present value of $72.4-million, an internal rate of return of 35.1% and low all-in sustaining costs of $733/oz for a 6.5-year life-of-mine production at 79 000 oz/y.

The study also finalised detailed plant engineering and process design work, enhanced geotechnical, hydrological and hydrogeological studies, as well as a robust mine plan, allowing the mine construction to start.

Hummingbird would immediately embark on early site earthworks, using a local West African contractor SFTP.  This would facilitate seamless advancement to civil construction with site earthworks expected to be completed in six to eight weeks.

This was ahead of its first gold pour targeted in the first half of 2016.

Meanwhile, the company also reported the ongoing development of its 4.2-million-ounce Dugbe 1 gold project, in Liberia, noting that it had entered into a hydroelectric power prefeasibility study collaboration agreement with IFC InfraVentures and Aldwych International to develop a sustainable source of low-cost power for the project and the region

“While we are currently focused on the significant near-term production potential at Yanfolila, we also remain committed to the longer-term Dugbe 1, which is compelling. We are in the process of optimising the definitive feasibility study to unlock further value of this large-scale development opportunity,” Betts added.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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