Acquisition of Minority Interest in Joe Village

RNS Number : 2081Y

Hummingbird Resources PLC

28 February 2012

 

Hummingbird Resources plc

("Hummingbird Resources" or the "Company") (AIM: HUM)

Acquisition of remaining 20% minority interest in the Joe Village licence, into which Dugbe F deposit extends, for acquisition cost of under US$3/ounce of existing Gold Resource

Hummingbird Resources is pleased to announce that it has conditionally agreed to acquire the remaining  20% interest in its Joe Village licence, which its Dugbe F Deposit extends into, for 103,225 ordinary shares in the Company.  The acquisition increases the Company's attributable NI 43-101 compliant Resource by 73,000 Indicated and 15,000 Inferred ounces, which represents an acquisition cost of under US$3/ounce based on the closing price of the Company's shares on 27 February 2012.  The acquisition will result in 100% ownership of any future discoveries on the Joe Village licence which includes the Sackor target currently under drill preparation.  Hummingbird Resources now has attributable gold Resources of 3.82Moz.

Highlights:

·    Acquisition of the remaining 20% interest in Joe Village licence to move to 100% ownership of Joe Village

·    Additional 88,000 ounces of gold added to existing Dugbe F deposit at cost of under US$3/ounce at current share price

·    Joe Village mineralisation represents the shallowest portion of the Dugbe F deposit and is likely to form the first part of a potential open pit mine with very low strip ratio

·    Acquiring the outstanding minority interest in the licence will simplify the process towards gold production.

·    100% of any future ounces discovered on very prospective Joe Village licence will be Hummingbird's

·    Sackor anomaly, 4km west of Dugbe F deposit in Joe Village licence, expected to be drilled next upon completion of current Tuzon drilling

·    Trench targets, including Gold Hill, and a large soil geochemistry anomaly recently discovered in the north west of Joe Village show the highly prospective nature of this licence

The agreed acquisition of the minority stake in the Joe Village licence is conditional on the formal grant of Mineral Development Agreement (MDA) currently under negotiation. 

Please click on the link below for a map showing Joe Village licence.

 http://www.rns-pdf.londonstockexchange.com/rns/2081Y_-2012-2-27.pdf

Daniel Betts, CEO, commented today:

"The mineralisation within the Joe Village licence represents the nearest surface, flattest lying section of the Dugbe F deposit, making it particularly attractive as Hummingbird begins to consider mining scenarios for its growing resource base.  The acquisition represents excellent value at under US$3/ounce and gives Hummingbird 100% ownership of all future discoveries in the Joe Village licence.  Various field programmes in the Joe Village licence are showing an encouraging roadmap for the rapid discovery of further ounces."

David Pelham has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules.  David Pelham is Technical Director of the Company and is a member of the Institute of Materials, Minerals and Mining.

ENDS

Enquiries:

Hummingbird Resources plc

Daniel Betts, Chief Executive Officer

Thomas Hill, Chief Financial Officer and Company Secretary

Robert Monro, Head of Business Development  [phone]

Liberum Capital Limited

Nominated Adviser and Joint Broker

Tom Fyson / Richard Bootle [phone]

Mirabaud Securities LLP

Joint Broker

Peter Krens [phone]

Yellow Jersey PR Limited

Dominic Barretto

[phone]

Harry Fielder

[phone]

Notes to Editors

Hummingbird Resources plc is an AIM quoted mineral exploration company incorporated in England and Wales and headquartered in London. Since its establishment in November 2005, the Company and its subsidiaries (the "Group") has been active in Liberia, West Africa, and is currently the holder of the largest area of mineral exploration ground in the highly prospective Birimian geological region of eastern Liberia.  The Group's total Resource is 3,817,000 ounces of gold (Indicated Resource of 1,373,000 ounces Gold and Inferred Resource of 2,444,000 ounces gold).

The Group has a gold Resource on its Dugbe F deposit of 43.01 million tonnes at 1.276 g/t Au to give 1,765,000 ounces of gold using a lower cut-off grade of 0.5 g/t Au and no upper cut-off grade (Indicated Resource of 1,373,000 ounces of gold at 1.28 g/t Au and an Inferred Resource of 392,000 ounces of gold at 1.23 g/t Au).   The Group now has in addition to this a Maiden Resource on its Tuzon project of 52.8 million tonnes at 1.21 g/t Au to give 2,052,000 ounces gold using a lower cut-off grade of 0.5 g/t Au and an upper cut-off grade of 7.0 g/t Au (Inferred Resource of 2,052,000 ounces gold at 1.21 g/t). Tuzon lies 2.6km to the east of the Dugbe F deposit.  The exploration has been based on sound geological premises and has been executed in an efficient and practical manner according to best industry practices.

The Group currently holds exploration licences covering approximately 7,000 square kilometres in total, which constitutes a significant proportion of eastern Liberia containing the Birimian sequence.

For more information, please visit www.hummingbirdresources.co.uk

 

END

 

 

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