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Hummingbird to update Yanfolila mineral resource estimate during the second quarter

29th May 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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In the year ended December 2018, Aim-listed Hummingbird Resources emerged as a commercially operating gold miner, with its flagship asset being the Yanfolila gold mine, in Mali.

CEO Dan Betts said in a statement this week that the year had seen many milestones but also operational challenges.

“After pouring first gold in December 2017, the Yanfolila mine successfully ramped up to full-scale production in the first quarter of 2018, displaying both the operational efficiency of the mine and positive cash flows for the subsequent quarters.”

However, this was soon followed by heavy rainfall in Mali, which led to potential pit wall instability issues and a damaged public bridge on the only road to site.

Nonetheless, the company produced 91 620 oz of gold in the reporting period, which sold at an average gold price of $1 271/oz.

Meanwhile, the company 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 around 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 preliminarily that, from 2020 to 2022, the company is 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 explained that, from 2023, the average yearly production at Yanfolila would reduce to 80 000 oz/y.

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

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

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

NEW PROSPECT

Hummingbird announced in its results statement that its mineral development agreement (MDA) for the Dugbe project had proceeded through the final stages of approval with the government of Liberia.

Betts pointed out that this was the first and only MDA to be successfully negotiated with the Liberian government in 15 years.

The company is considering next steps in development of the project, which is known to be the country’s largest gold deposit.

“[With] 4.2-million ounces of gold resources, and Hummingbird having an additional 2 000 m2 of highly prospective ground under licence in the country, we are confident in realising the inherent value of the project in due course,” said Betts.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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