Dugbe project n progress
Aim-listed Hummingbird Resources has confirmed strong financial metrics for the Dugbe gold project, in Liberia, in a feasibility study released by project partner TSX-V-listed Pasofino Gold on June 13.
The study estimates a net present value after tax of $530-million and a 23.6% internal rate of return for the project, based on a $1 700/oz gold price.
The life-of-mine all-in sustaining cost is estimated at $1 005/oz, while the capital required is expected to be just under $400-million, excluding costs for a five-million-tonne-a-year processing plant.
The mine is expected to achieve an average yearly production rate of 200 000 oz for the first five years and to produce 2.27-million ounces over a 14-year mine life.
This is not including 67 000 oz of inferred mineral resources within the feasibility study area and immediate sidewalls.
Hummingbird is nearing completion of an environmental- and social-impact assessment, with publication expected before the end of the month.
Some advantages to the project are a short drive by road to the nearby Port of Greenville and that the Liberian government has already supported berthing rights for the company at the port.
Additionally, both the Tuzon and Dugbe F deposits of the project can be serviced by a central processing plant, owing to them being 4 km apart.
The company envisions using liquid natural gas power generation, hybridised with solar photovoltaic power generation, to produce an estimated levelised cost of energy of $175.10/MWh.
The Dugbe project is being developed by Pasofino through an earn-in agreement.