Mali – AIM-listed gold developer Hummingbird Resources has identified the potential to significantly increase the net-present value (NPV) and mine life of its Yanfolila gold deposit through the integration of its Gonka deposit into the existing project.
A desktop study on the Gonka deposit, located 5km south of the proposed Yanfolila gold project was recently prepared for the company by DRA Projects to test the economic viability of Gonka and was based on the SAMREC-compliant inferred mineral resources of 139 000 oz at 2.9g/tand additionally a Goldfields internal estimate of 170 000 oz at 4.03g/t.
The study resulted in a mining inventory of 169 000 oz, mined over a six year mine life, including:
- 92 000 oz at 2.3g/t in open pit; and
- 77 000 oz at 4.5g/t underground
The results from this analysis were highly encouraging, revealing that by incorporating Gonka, a significant incremental uplift in the project NPV by US$24 million can be achieved relative to the definitive feasibility study (DFS), with a total project NPV of $166 million using a gold price of $1 250/oz.
Using a more conservative gold price of $1 100/oz, the value uplift is still significant at $13 million with a total project NPV of $101 million.
“It has always been our belief that Yanfolila’s mine life will grow significantly and this is another step in that process. This study adds US$24 million to the DFS NPV and 169 000 ozs of gold to the mine life, a very pleasing piece of upside,” says Hummingbird Resources CEO Dan Betts.
This study is early stage however Hummingbird anticipates extensions of the underground resources to increase the size of this deposit even further in the future.
Betts believes that Gonka is ideally placed to add open pit ore and higher grade, over 4 g/t, underground ore into the mine plan to increase the project’s production rate and enhance the overall economics.
Hummingburd further reported that it had reached an agreement with Taurus Mining Finance Fund to extend its US$15 million bridge facility to the 8 March 2016.
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