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Kouroussa gold project, Guinea – update

Location map of the Kouroussa project

Photo by Hummingbird Resources

24th May 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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 has reported the remobilisation of mining services provider Corica Mining Services.

Corica suspended work at the mine in March 2024 following a dispute with Hummingbird about certain payments.

The parties have agreed to remobilise Corica equipment to site and continue the ramp-up in operations towards commercial production at Kouroussa.

Hummingbird has reported that all Corica equipment has been mobilised and arrived on site, with operations having started.

An agreed operational plan is being implemented by Corica and is anticipated to fully ramp up by the start of the third quarter this year. The plan will be augmented by the previously announced additional ETASI fleet, which is being mobilised, and is expected on site in the coming weeks.

Hummingbird has indicated that the agreement between the parties to remobilise outlines a framework for negotiating and resolving key disputes, including the parties’ respective claims under the terms of the mining contract.

The company has noted, as part of ongoing efforts to mitigate risk around its working capital position, CIG SA, the company’s largest shareholder, has agreed to provide a $10-million loan for the company to ensure continuity of operations during this ramp-up phase.

The CIG loan will be provided in tranches, is unsecured, attracts interest at 14% a year and has a maturity date of September 30, 2024, which can be extended by mutual agreement.

The company remains in discussions with its primary lender, Coris Bank International, surrounding the mitigation of the financial impacts of the suspension in operation and will provide an update in due course.

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.

Edited by Creamer Media Reporter

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