Name of the Project
Yanfolila gold project.

Location
The project comprises two main clusters of ore deposits: Komana East (KE), Komana West (KW), Guirin West (GW) and Gonka (GK), in the south; and Sanioumale East (SE) and Sanioumale West (SW), in the north of Mali.

Project Owner/s
Hummingbird Resources has increased its ownership in the project from 75% to 80%, after acquiring a further 5% interest and a 1% royalty from La Petite Mine d’Or for $1-million during the six months ended June 2017.

Hummingbird will pay La Petite Mine d’Or $2-million in shares, which are to be issued by March 31, 2018.

Further, the government of Mali is expected to pay Hummingbird $11-million for an additional 10% stake in Yanfolila. This will increase government’s shareholding in the project to 20%.

Project Description
Hummingbird has completed an optimised mine schedule, which has improved the Joint Ore Reserves Committee-compliant ore reserve statement and updated economic sensitivities based on the new reserve and mine schedule for the Yanfolila gold project.

The project’s reserves have increased from 6.82-million tonnes at a grade of 3.03 g/t of gold in the January 2016 definitive feasibility study (DFS) to 7.04-million tonnes at a grade of 3.14 g/t of gold in the optimised mine schedule.

The DFS financial model has been updated to incorporate the increased ore reserve and new mine schedule, with a resulting improvement in project economics. The project will be developed as an openpit, low-cost gold mining operation.

The DFS life-of-mine (LoM) plan envisages the progressive mining of five openpits, starting initially with KE and KW, and then progressing to GW, SE and SW.

Hummingbird is also considering developing the high-grade Gonka resource, initially as an openpit and then as an underground mine.

Currently, the Yanfolila crushing circuit is a two-stage operation, incorporating primary and secondary crushing circuits designed to treat mainly oxides and a blend of oxide and transition ores. A second ball mill will increase throughput capacity from one-million tonnes a year to 1.24-million tonnes a year, producing up to 107 000 oz/y of gold.

The ore is nonrefractory and the simple process plant design uses gravity and carbon-in-leach (CIL) for the processing and recovery of the gold, which averages 92.5% over the LoM.

Potential Job Creation
The project currently has more than 700 people on site.

Net Present Value/Internal Rate of Return
The project’s net present value (NPV) has increased from $88-million, at an 8% discount rate in the 2016 DFS, to an NPV, at an 8% discount rate, of $162-million.

The project’s internal rate of return has increased from 37% in the DFS to 60% in the optimised mine schedule.

Capital Expenditure
The project’s estimated capital expenditure (capex) has remained at $79.36-million from the DFS to the optimised mine schedule.

Planned Start/End Date
The project poured its first gold in December 2017.

Latest Developments
Hummingbird Resources expects to publish an updated mineral resource estimate by the end of the second quarter, on the back of a successful exploration drilling programme undertaken during the reporting period.

Additionally, a $13-million second ball mill will be installed during the third quarter, which should increase the plant throughput capacity by about 24%, or from 1.2-million tonnes a year to 1.4-million tonnes a year, when processing a blend of ore, and from one-million tonnes to 1.24-million tonnes a year when processing 100% fresh ore.

The latest life-of-mine plan for Yanfolila, pending finalisation, indicates that, from 2020 to 2022, the company will be able to achieve production of between 130 000 oz/y and 145 000 oz/y at an all-in sustaining cost of $800/oz.

The company has said that, from 2023, the average yearly production at Yanfolila will decrease to 80 000 oz/y.

Hummingbird will, therefore, pursue the development of the Gonka deposit, which is 5 km from the process plant, as well as underground mining at KE, which is currently an openpit operation.

The company has estimated that resources of more than one-million ounces of gold are situated outside of the current defined reserve, which is 2.2-million ounces of gold.

Hummingbird remains on track to produce between 110 000 oz and 125 000 oz of gold for the year.

Key Contracts and Suppliers
DRA Projects (DFS); CSA Global (mineral resource and ore reserves reports); Senet (metallurgical testwork, process design and engineering, and capital and operating cost estimates for the processing plant and the associated plant infrastructure); Schlumberger Water Services (hydrology and hydrogeological studies); and Ausenco Engineering Canada (design and cost estimates for the tailings storage facilities, or TSF); Afromix (agitators); Delkor (linear screens); Kemix (regeneration kiln and interstage screens); Metso (primary and secondary crushers, screens and feeders); AMS (TSF); Zen Petroleum Mali (fuel supply); AEL Mining Services (explosives and explosives storage).

On Budget and on Time?
The project remains on budget and on schedule for its first gold pour by the end of this year.

Contact Details for Project Information
Hummingbird Resources, tel +44 20 3416 3560.