Aim-listed Hummingbird Resources will release a five-year mine plan for its Yanfolila gold mine, in Mali, following an update to its open pit ore reserves and its 2020 guidance, early next year.
Yanfolila, which currently consists of the Komana East & West, Gonka and Sanioumale West deposits in the reserve, now comprise 7.9-million tonnes of reserve ore at 2.66 g/t for about 676 000 oz of gold, and another 165 000 oz was assed to the pre-production reserves.
This represents a 32% increase to its reserve base on the estimates given in October this year.
According to CEO Dan Betts, Hummingbird Resources have also identified first ore reserves from Gonka open pit and Sanioumale West.
It is the company’s intention to update the five-year mine plan on a rolling basis as further reserves are defined. Additionally, Hummingbird is also able re-start exploration drilling and study work in the first quarter of 2020 with a renewed focus on ensuring the mine's long term future.
The fourth quarter of 2019 has remained a strong quarter for the company, Betts said on Tuesday, adding that the company is on track to meet its full year production guidance.
Over the course of 2020, Hummingbird will continue to “aggressively de-leverage” its debt position and strengthen its balance sheet with the anticipation of moving from a position of net debt to net cash.
“Within [three] years of starting operations this is a significant milestone and will allow us to start to look to move the company forward with cash generation and shareholder value being a key focus," Betts commented.