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.

Client
Hummingbird Resources (80%).

The government of Mali is expected to pay Hummingbird $11-million for an additional 10% stake in Yanfolila.

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.

The plant will have a throughput of 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.

Jobs to be Created
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.

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

Duration
Initial gold pour is targeted for the end of 2017.

Latest Developments
Construction at the Yanfolila mine is progressing on schedule and within budget, with several aspects of development, including process design and detailed engineering, now complete.

The company has said that construction is 56% complete, with 73% of the estimated capex spend committed, as it continues to target first gold pour by the end of this year.

At a gold price of $1 250/oz, the company anticipates, based on the final project study, free cash flows of around $70-million in the mine’s first full year of production. 

Hummingbird acquired a further 5% interest in Yanfolila during the quarter ended June 30, 2017, as well as the 1% royalty from La Petite Mine d’Or for a total consideration of $2-million to be paid in shares on March 31, 2018.
 
Meanwhile, construction of the carbon-in-leach tanks at Yanfolila is now complete, allowing other work fronts to progress rapidly.

The ball mill has arrived on site, on time, in preparation for its installation. This is the longest lead item for the project and its arrival has materially derisked the construction timeline. 

Construction of the crushing circuit is ongoing with parts of the conveyor system starting to arrive on site. Preassembly of the conveyor sections has started and their installation is expected to start imminently.
 
A significant portion of the rest of the plant and equipment is now on site and installation of this equipment has started.

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); African Mining Services (TSF) and Zen Petroleum Mali (fuel supply).

On Budget and on Time?
“We continue to make excellent progress on site and, as a result, we continue to advance Yanfolila to production on time and within budget,” CEO Dan Betts has said.

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