Mali – AIM-listed Hummingbird Resources, the West African gold junior has revealed an increased size, extended life of mine (LOM) and robust economics for its 1.8 Moz Yanfolila gold project in Mali following completion of an optimised study. It further provides a defined path to production in H1, 2016, with construction commencing on time in Q1, 2015.
“The optimisation study shows a low-cost, low technical risk and quick route to gold production for Yanfolila with robust economics. The initial target is 100 000 oz of gold for the first year of full production after ramp up with a LOM production of 79 000 ozpa and an all-in sustaining cash cost of US$733/oz from a 1 Mtpa plant. In addition, there are multiple options to significantly increase the project economics and LOM, and importantly we have the team with the operational experience to achieve this,” says Dan Betts, CEO of Hummingbird Resources.
“We are looking forward to extending the bridge imminently with Taurus while they finalise due diligence and documentation for the full draw down. Construction is expected to commence this month (March) and we look forward to delivering a mine and generating significant free cash and strong returns for shareholders.”
The study includes the finalisation of detailed plant engineering and process design work, enhanced geotechnical, hydrological and hydrogeological studies, as well as a robust mine plan, which will allow for the commencement of mine construction in H1, 2015. This is scheduled to take 12 months, leading to first gold in H1, 2016.
Yanfolila base case
|Yanfolila Project||Base case|
|Gold price (US$)||US$1 250|
|Initial full production||100 000oz|
|Initial mine life||6.5 years|
|LOM production||79 000 ozpa|
|LOM grade||2.64 g/t|
|Initial capex (US$)||US$71.6m|
|Annual processing||1 Mtpa|
|Payback (after tax)||< 3 yrs|
|Direct C1 cash operating costs (US$/oz)||US$641|
|All-in sustaining costs (US$/oz)||US$733|
|After tax NPV (8%) (US$m)||US$72.4|
|After tax IRR||35.1%|
Hummingbird Resources also owns the 4.2 Moz Dugbe project in Liberia. An optimisation of the DFS is on-going while Yanfolila is brought to production in the near term. Additionally, the Company has 5 000 km2 of highly prospective exploration ground in Mali and Liberia and is constantly evaluating quality new assets.