DTI Funding for Definitive Feasibility Study

RNS Number : 3796S

Hummingbird Resources PLC

07 November 2013

 



7 November 2013

Hummingbird Resources plc

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

DTI Funding for DFS

South African Department of Trade and Industry Commit Funding for Definitive Feasibility Study

Hummingbird, the Liberian gold exploration and development company with a 3.8Moz gold Resource, is pleased to announce that MDM Engineering ("MDM"), which was appointed lead consultant for Hummingbird's Detailed Feasibility Study ("DFS") and Front End Engineering and Design ("FEED") in July 2013, has received approval from the South African Department of Trade and Industry ("DTI") for a grant to support MDM's consultancy work in relation to the DFS.

As a result, Hummingbird will expect to benefit from a 55% reduction in the cost of its DFS and FEED work completed by MDM.

MDM is providing the following consultancy services in relation to the DFS: process engineering, civil engineering, structural engineering, mechanical engineering, platework, piping, electrical engineering, control and instrumentation engineering, infrastructure, project risk analysis, project implementation planning and capital and operating cost estimates.  In conjunction with the DFS, MDM are to embark on the FEED for the project. 

Dan Betts, Chief Executive of Hummingbird Resources, said:

"The grant from the South African Government is a strong endorsement for MDM and the Dugbe 1 Project which we are very pleased to have been awarded. It also provides a significant cost saving for Hummingbird as we progress through our DFS and FEED."  

-ENDS-

Enquiries:

Hummingbird Resources plc

Daniel Betts, Chief Executive Officer
Thomas Hill, Finance Director
Robert Monro, Head of Business Development	[phone]
Liberum Capital Limited
Nominated Adviser and Joint Broker
Tom Fyson / Ryan de Franck	[phone]
FTI Consulting LLP
Financial PR
Ben Brewerton / Oliver Winters	[phone]

Notes to Editors

About Hummingbird Resources Plc

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 Inferred Resource is 3,835,000 ounces of gold. The Group has published a PEA on its project showing on a 3.5Mtpa tank leach operations an NPV of US$337m on a Capex of US$212m for an IRR of 43.4%. This gives a payback period of 3 years and is based on a 10% discount rate and US$1,500 gold price (three year average gold price at time of release).

The Group has published a NI43-101 compliant Inferred Resource on its Dugbe F deposit of 43.01 million tonnes at 1.28 g/t Au to give 1,764,000 ounces of gold using a lower cut-off grade of 0.5 g/t Au and no upper cut-off grade. In addition, the Group has declared an Inferred Resource on its Tuzon project of 51.1 million tonnes at 1.26 g/t Au to give 2,071,000 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. Tuzon lies 2.6km to the east of the Dugbe F deposit. Exploration is being carried out to best industry practices.

In 2013, the Group is moving the Dugbe 1 Project towards feasibility with 15,802m of infill drilling completed this year.

The Group currently holds exploration licences covering over 5,000 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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