Photo by: Reuters
JOHANNESBURG (miningweekly.com) – Aim-listed Hummingbird Resources has signed a collaboration agreement with development fund IFC InfraVentures and energy company Aldwych International to embark on the planning and development of a 20 MW to 30 MW hydroelectric power (HEP) plant in south-east Liberia.
The proposed plant, which would contribute to domestic power supply in the area, would also provide low-cost power to the company’s 4.2-million-ounce Dugbe 1 gold project, potentially reducing the mine’s operating costs.
The plant would be located about 10 km from the project.
"This collaboration represents an extremely exciting opportunity for Hummingbird, working together with two highly regarded partners. . .to develop a sustainable source of power for Dugbe 1 and to secure the future domestic power supply for the south-east Liberia region and the town of Greenville, in particular,” Hummingbird Resources CEO Dan Betts said.
A prefeasibility study (PFS) would be conducted by Knight Piésold Consulting to assess the technical and economic viability of the proposed HEP project.
“With the PFS fully funded by IFC InfraVentures, we believe, if successful, this scheme will create a catalyst for growth of the region and provide a significant potential opex-saving opportunity for Dugbe 1,” Betts added.
The PFS would be carried out in two phases, with the first phase involving preliminary engineering, a draft PFS report and the installation of stream gauge and flow monitoring equipment. The second phase will comprise one year of flow rate recording, stream gauge maintenance, hydrological analysis and the final PFS report.
The study was expected to be completed by April 2016 at a cost of about $265 000.
Meanwhile, Betts noted that the company remained dedicated to making significant progress at its Yanfolila gold project, in Mali. “Having just raised $8.9-million on top of our $75-million debt facility with Taurus, mine construction at Yanfolila is due to start imminently with first production targeted for the first half of 2016,” he added.