Name of the Project
Kouroussa gold project.

Location
Siguiri basin, Guinea.

Project Owner/s
Hummingbird Resources.

Project Description
Kouroussa has reserves of 4.86-million tonnes grading 4.15 g/t gold.

The project is forecast to be a high-grade, low-cost mine that will produce an average of 100 000 oz/y over an initial seven-year life-of-mine, with material upside potential through further exploration drilling, which is being planned.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value of $210-million and internal rate of return of 71%, with a payback of two years.

Capital Expenditure
$115-million.

Planned Start/End Date
Hummingbird Resources poured first gold, ahead of schedule and budget, in June 2023.

Latest Developments
Hummingbird Resources is progressing with the restart and ramp-up of mining activities to achieve commercial production as soon as possible.

The company has continued to engage with principal contract miner Corica, seeking resolution to disputes between the companies that led to Corica’s halting work at Kouroussa last month. Corica suspended mining activities on March 17, citing contractual disputes.

The aim of these discussions remains to get Corica to return to Kouroussa and ramp up operations under the existing mining contract.

Owing to the ongoing suspension, Hummingbird has issued a formal step-in notice, which enables it to take management control and issue instructions to Corica and those operating under the contract. The company has noted that the step-in notice is not a termination of the contract.

Should Corica or its third-party contractors be unable to meet these instructions, the right enables Hummingbird to appoint alternative operators or contractors to meet the requirements of the contract.

Meanwhile, Hummingbird has engaged West African mining contractor Etablissement Adama Sidibé (ETASI), which the company has worked with in the past. ETASI is operating the support fleet on site to provide further operational equipment to increase mining volumes and ramp up progress towards commercial operations.

Hummingbird expects the additional ETASI fleet to be mobilised shortly and commissioned at Kouroussa over the coming weeks.

The company is also in discussions with additional operators and contractors, alongside the ongoing discussions with Corica, to maximise the full range of mining activities required to reach full commercial production as soon as possible to leverage the current strong gold pricing dynamics and near-term operational platform at Kouroussa.

Over the past weeks, the ETASI support fleet has continued to operate, with the processing plant handling the ore, along with stockpiled material.

During this period, Kouroussa has noted an improvement in feed grade and achieved several strong weekly gold pours despite the reduced mining volumes.

“This improved grade is attributed to mining operations entering the transitional zone of the Koekoe deposit, which, in turn, boasts higher grades,” the company has said.

At the current relative level of 347.5 m from the bottom of the final pit level, the upcoming blasts – which had previously been delayed, owing to the suspension of work by Corica – are expected to start providing access to higher-grade ore, which is crucial for achieving commercial production.

Since March 18, operations at Kouroussa have continued, with the processing plant operating at the expected levels and mining through the small existing ETASI support mining fleet, with the company having achieved several weekly gold pours averaging about 700 oz a week.

Key Contracts, Suppliers and Consultants
Corica (principal contract miner).

Contact Details for Project Information
Hummingbird Resources MD corporate development Edward Montgomery, tel +44 20 7409 6660.