First Concrete Poured at Yanfolila Gold Project

RNS Number : 9854M

Hummingbird Resources PLC

20 October 2016

 

Ticker: HUM / Index: AIM / Sector: Mining

20 October 2016

Hummingbird Resources plc ("Hummingbird Resources" or "the Company")

First Concrete Poured at Yanfolila Gold Project

Hummingbird Resources (AIM: HUM), is pleased to announce that first concrete has been poured on time and on budget for the foundations of the mine-site at its Yanfolila Gold Project in Mali ("Yanfolila" or "the Project").

Highlights:

·     First concrete has been poured following commencement of mine construction

·    Additional long lead items ordered including the crushing circuit equipment from Metso, agitators from Afromix, screens and carbon regeneration kiln from Kemix

·     Land compensation has been completed

·     On schedule and budget for first gold pour by end of 2017

Dan Betts, CEO of Hummingbird Resources, said: "I continue to be impressed with the progress our team and our contractors are making on site at Yanfolila.  The first concrete pour is a significant milestone on our path to production and we remain on schedule for our first gold pour by the end of next year." 

Please click on the following link to see updated imagery from the project; http://hummingbirdresources.co.uk/gallery/

Construction update

The first concrete has been poured by IMAGRI-SARL, the civil works contractor, for the foundations for the plant at Yanfolila.   The concrete pours will now continue over the next three months.

Several material orders have now been placed for the Project with suppliers, such as the agitators being ordered with Afromix, linear screens being ordered with Delkor, regeneration kiln and interstage screens being ordered on Kemix.  Having committed to US$12 million of the Project budget the Company remains on budget and schedule for the construction of the Yanfolila mine.

The order for the primary and secondary crushers, together with screens and feeders was placed with Metso, a reputable market leader in the supply of mining equipment.

The detailed design of the process plant is progressing well and procurement of equipment is showing that the market is extremely competitive with vendors offering good prices and delivery times.

Land Compensation and Local Engagement

The compensation process to 50 farmers for loss of croplands over areas of construction, mining and associated infrastructure has been completed.  The Company looks forward to continuing a good relationship with the local communities and has initiated a proactive CSR programme, including the on-going support to teachers and nurses within the local communities and market garden programmes.  Opportunities for partnership with national and international organisations are currently being evaluated, principally in the fields of health, education and livelihood development projects.

Local employment and procurement remain key pillars of the Local Sustainable Development Plan.  During this initial construction period approximately 100 jobs have been created by the Company and major contractors, of which over 90% are Malian and around 40% are filled by local communities.  Interactions with local suppliers for fresh produce and construction materials are underway, with an increasing amount of goods being sourced directly from local communities.

About Yanfolila

Yanfolila is the Company's most advanced asset, which boasts impressive economics and production fundamentals.  132,000oz gold is targeted for its first full year of production, which would deliver around US$70 million of free cash flow at a US$1,250/oz gold price.  On its initial eight year mine life, Yanfolila has an IRR of 60% and an NPV of US$162 million at US$1,250 gold price, making it one of the highest margin undeveloped gold projects in Africa.  All in sustaining costs of US$695 per ounce places it in the lowest quartile of African producers. 

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

**ENDS**

For further information please visit www.hummingbirdresources.co.uk or contact: 

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: [phone]
Charlie Cryer Oliver Morse	RFC Ambrian Ltd Nominated Adviser and Joint Broker	Tel: [phone]
Jon Belliss	Beaufort Securities Limited Joint Broker	Tel: [phone]
Lottie Brocklehurst Susie Geliher	St Brides Partners Ltd Financial PR/IR	Tel: [phone]

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company.  The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe Gold Project in Liberia.  It is currently building Yanfolila targeting first production by end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential.  The high grade gold project has low operating costs of US$695/oz AISC with 132,000ozs of first full year's production. 

The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird with excellent development upside.  An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term.  Additionally, the Company has 4,000km² highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

 

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