Updated MRE for the Dugbe Gold Project, Libera

RNS Number : 1726T

Hummingbird Resources PLC

22 November 2021

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

22 November 2021

Hummingbird Resources plc

("Hummingbird" or the "Company")

Updated Mineral Resource Estimates for the Dugbe Gold Project, Libera

3.40 Moz in Measured & Indicated Mineral Resources, a 1 Moz increase from the last MRE update

Hummingbird Resources plc (AIM: HUM) is pleased to announce Pasofino Gold Ltd ("Pasofino") (TSXV: VEIN) has released an updated Mineral Resource Estimates ("MRE") for the Dugbe F and Tuzon deposits at the Dugbe Gold Project ("The Project") in Liberia. For the full Pasofino release details and graphics, please follow the link here .

Pasofino has an earn-in agreement for a 49% stake in the Project, with Hummingbird maintaining a controlling interest of 51%. For further details on the option and earn-in agreement with Pasofino, please refer to the Company's RNS dated 4 June 2020.

Highlights

· Using a 1.0 g/t Au cut-off, the Measured and Indicated part of the MRE model boasts 2.88 million ounces ("Moz") of gold contained in 56.6 million tonnes ("Mt") grading 1.58 grams per tonne ("g/t") Au in two deposits:

o  Tuzon deposit : 40.2 Mt grading 1.64g/t Au containing 2.11 Moz gold

o  Dugbe F deposit : 16.5Mt grading 1.45g/t Au containing 0.77 Moz gold

· This higher-grade material comprises the bulk of the MRE, and selective processing of it should benefit the project economics

· Reporting using the 0.5 g/t Au cut-off grade, which was used for the previous (August 2020) MRE:

o  An increase of 1.0 Moz gold in the Measured and Indicated category

o  Measured and Indicated tonnage is now 75.2 Mt grading 1.37 g/t Au containing 3.31 Moz gold

o  Plus, an Inferred tonnage of 14.9 Mt at 1.23 g/t Au containing 588 thousand ounces ("koz") gold

· Using the lower 'marginal' cut-off grade (0.34 to 0.40 g/t Au), the Total Measured and Indicated Mineral Resource inside of the pit-shell is 81.2 Mt grading 1.30 g/t Au containing 3.40 Moz gold

· This has led to a Total MRE of 4.0 Moz (Measured, Indicated and Inferred as detailed in Table 1 below)

· There are clear opportunities to expand the MRE beyond the pit-shell, increase grade and make new discoveries highlighted by recent outcrop sampling returning up to 3.0 g/t on strike from Tuzon and the 100+ targets on the over 2,500 Kilometre squared ("km² ") land package in Liberia

· Taking advantage of the significantly increased Measured and Indicated gold, DRA Global will now progress with the mine design and Mineral Reserve Estimation for the Feasibility Study ("FS"), which is on schedule for completion by the end of Q2 2022. It is expected to benefit from the robust and flexible MRE

Dan Betts, CEO of Hummingbird Resources, commented:

"Pasofino's work to date demonstrates what we have always believed, which is Dugbe is underpinned by a robust mineral deposit. Of the total updated 4.0 Moz resource base, 3.4 Moz is in the Measured and Indicated category, which is a significant uplift on the previous MRE."

We are excited to see the results from the continuing DFS work that Pasofino are doing as they complete the earn in requirements of our JV agreement to earn a 49% interest in the Project. We are increasingly confident that Dugbe has all the hallmarks of a robust, large scale mine and remain very enthused by the upside potential to expand the resource base. We continue to see Dugbe as a very valuable asset within the Hummingbird portfolio which can help us to drive value for our shareholders as that value becomes more clearly articulated through the DFS work scheduled for completion in Q2 2022."

Ian Stalker, CEO of Pasofino Gold Ltd, commented:

"We have achieved an updated Measured and Indicated Mineral Resource Estimate (MRE) of 3.4 Moz of gold which is the main input for the well-advanced Feasibility Study; of this, 2.88 Moz grading 1.58 g/t Au above a 1.0 g/t Au cut off provides an opportunity to deliver higher grade ore to the plant and should have a knock-on benefit on operating costs and capex, potentially without detriment to planned annual production. It is also important to note that there are avenues for further resource expansion and grade increase which is exciting, and we plan to take advantage of these as we work full speed to finalize the FS in early 2022."

Table 1: MRE for the Dugbe F and Tuzon deposits, with an effective date 17 November 2021, using cut-off grade values defined in the footnotes.

Subtotal above 0.5 Au cut-off grade		Classification	Tonnage (Mt)	Grade (Au g/t)	Contained Gold (koz)
	Tuzon deposit	Measured	-	-	-
		Indicated	53.2	1.40	2,396
		Measured & Indicated	53.2	1.40	2,396
		Inferred	7.5	1.13	270
	Dugbe F deposit	Measured	1.2	1.44	56
		Indicated	20.8	1.28	860
		Measured & Indicated	22.1	1.29	916
		Inferred	7.4	1.34	317
	Subtotal	Measured	1.2	1.44	56
		Indicated	74.0	1.37	3,256
		Measured & Indicated	75.2	1.37	3,312
		Inferred	14.9	1.23	588
Subtotal MRE for material above marginal cut-off grade and below 0.5 g/t Au		Classification	Tonnage (Mt)	Grade (Au g/t)	Contained Gold (koz)
	Tuzon deposit	Measured	-	-	-
		Indicated	5.8	0.43	81
		Measured & Indicated	5.8	0.43	81
		Inferred	2.0	0.44	29
	Dugbe F deposit	Measured	-	-	-
		Indicated	0.2	0.45	3
		Measured & Indicated	0.2	0.45	3
		Inferred	0.01	0.44	0.2
	Subtotal	Measured	-	-	-
		Indicated	6.0	0.43	84
		Measured & Indicated	6.0	0.43	84
		Inferred	2.1	0.44	29
Total MRE - all material above the marginal cut-off grade	Tuzon deposit	Measured
		Indicated	59.0	1.31	2,477
		Measured + Indicated	59.0	1.31	2,477
		Inferred	9.5	0.98	300
	Dugbe F deposit	Measured	1.2	-	56
		Indicated	21.0	1.28	863
		Measured + Indicated	22.2	1.29	919
		Inferred	7.40	1.33	318
	Total	Measured	1.2	-	56
		Indicated	80.0	1.30	3,340
		Measured + Indicated	81.2	1.30	3,396
		Inferred	16.9	1.13	617

Notes

1.  The effective date of the Mineral Resource Estimate is 17 November 2021

2.  The marginal cut-off grades for Tuzon are 0.34 g/t Au for fresh material and 0.39 g/t Au for weathered material. The marginal cut-off grades for Dugbe F are 0.36 g/t Au for fresh material and 0.40 g/t Au for weathered material

3.  Rounding errors may be evident when combining totals in the table but are immaterial

4.  The Qualified Person is Mr. Martin Pittuck (CEng, MIMMM)

5.  The Mineral Resource has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101)

6.  Mineral Resources are not Mineral Reserves and have no demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues

7.  Mineral Resource estimates are stated within conceptual pit shells that have been used to define Reasonable Prospects for Eventual Economic Extraction (RPEEE). The pit shells used the following main parameters: (i) Au price of US$1700/ounce; (ii) plant recovery of 90%; and (iii) mean specific gravity of 2.78 t/m3for fresh rock and 2.1 t/m3for oxide material

Clear opportunities for an increase in grade and size

The following opportunities are apparent from the MRE and recent fieldwork:

· The higher-grade domain at Tuzon can be followed for most of the length of the deposit and may represent an opportunity for preferential treatment of higher-grade material to maximise project economics

· Incorporation of internal barren/low-grade intervals into the updated block model contributed to the lower grade than the 2020 estimates but was considered necessary for the Indicated classification - infill drilling may allow some of these intervals to be modelled and excluded from future MRE work, or at mining stage and is, therefore, an opportunity to increase grade

· Both deposits extend beyond the MRE pit shell and there is an opportunity to expand the high-grade zone at Tuzon beyond its current modelled extent. At Tuzon, the 'SE limb' in particular needs further drilling to follow it. The last drill-hole on this limb was TDC186 which intersected 17.3 metres ("m") with an average grade of 2.70 g/t Au[1]

· Potential to identify satellite deposits. At a new target on strike from Tuzon, four rock-chip samples from outcrops returned 0.39, 0.72, 2.41 and 3.07 g/t Au. These were collected as part of mapping to finalise the drill-hole location for a hole testing trench TZTR091, which returned an interval of 36 m with an average grade of 0.60 g/t Au 6 km to the southwest of Tuzon[2]

Drilling and MRE objectives achieved

The updates to the Dugbe F and Tuzon MREs utilised approximately 14,000 m of additional diamond core drilling completed in 2021, adding to the 68,832 m drilled by Hummingbird Resources between 2009 and 2014. The objectives of the 2021 drilling were as follows:

1.  To support conversion of Inferred resources to Indicated particularly at Dugbe F

2.  Initial testing of potential extensions of the mineralisation at Tuzon

3.  Targeted holes to firm up on the geological model

4.  To provide holes for geotechnical testwork and manual and acoustic televiewer logging for the DFS pit-design

All four objectives were firmly achieved. At Dugbe F the infill drilling converted most of the previous Inferred MRE to Indicated; 73% of the Dugbe F deposit is now in the Measured and Indicated category. Drilling to test the extension of the 'SE limb' and 'main fold hinge' at Tuzon was largely limited to 180 m beyond the previous drilling to test the concept before further holes were drilled. The work has shown that further drilling has the potential to expand these parts of the deposit.

Geology of the deposits

The Tuzon and Dugbe F deposits are approximately 4 km apart. The hosting mineralised layer at both is orthopyroxene gneiss with increased sulphide (typically 0.1 to 1%) content (visible pyrrhotite, arsenopyrite and pyrite). At Tuzon, the mineralised layer is between 2 and approximately 100 m thick at the largest fold hinge. At Tuzon, the mineralised layer has been folded into a large synform plunging approximately 20 degrees southwest. The synform was later refolded, notably by the 'F3' folds and so has relatively complex geometry. At Dugbe F the layer is typically 5-10 m thick and gently southeast dipping, and flat to undulating. At both Dugbe F and Tuzon the layer outcrops for most of the length of the deposits. Two localised recumbent folds affect the mineralised layer at Dugbe F causing repetition and thickening of the mineralised layer. The deposits are cut by whitish younger granitic bodies and pegmatites which are generally barren. These intrusions are interpreted to be dominantly parallel with the F3 fold axial planes forming semi-concordant moderately dipping sheets of varying thickness. The base of the oxide zone at both deposits is shallow, rarely more than 10-12 m below surface and there is little to no transitional zone.

Qualified Persons Statement

The independent Qualified Person responsible for the Mineral Resource Estimates at the Dugbe F and Tuzon deposits, is Mr. Martin Pittuck, CEng, MIMMM, FGS and is a full-time employee with SRK Consulting (UK) Ltd. By virtue of his education, professional registration and experience, Mr. Pittuck is a Qualified Person for the purpose of NI 43-101 reporting and is independent of Pasofino. Mr. Pittuck consents to the content of this press release relating to the Tuzon Mineral Resource Estimate.

Content in this disclosure that relates to exploration results was prepared and approved by Mr. Andrew Pedley Pr. Sci. Nat FGSSA. Mr. Pedley is a full-time consultant of Pasofino Gold Ltd.'s wholly-owned subsidiary ARX Resources Limited. By virtue of his education, professional registration and experience, Mr. Pedley is a Qualified Person for the purpose of NI 43-101

About the Dugbe Gold Project

The 2,559 km² Dugbe Project is located in southern Liberia and situated within the south westmost part of the Birimian Supergroup, which is host to the majority of West African gold deposits. To date, two gold deposits have been identified on the Project; Dugbe F and Tuzon. Both deposits outcrop at surface and may be amenable to open-cut mining. The deposits are located within 4 km of the Dugbe Shear Zone which is thought to have played a role in large scale gold mineralisation in the area. A large amount of exploration in the area was conducted by Hummingbird including 74,497 m of diamond coring. 70,700 m of this was at the Dugbe F and Tuzon deposits, discovered by Hummingbird in 2009 and 2011 respectively. In 2020 and 2021 Pasofino drilled a further 14,638 m mostly at Dugbe F and Tuzon. Pasofino is well underway with a definitive feasibility study for gold production from these deposits. In addition, there are a number of gold targets within the Project. In 2019, Hummingbird signed a 25-year Mineral Development Agreement ("MDA") with the Government of Liberia providing the necessary long-term framework and stabilisation of taxes and duties. Under the terms of the MDA, the royalty rate on gold production is 3%, the income tax rate payable is 25% (with credit given for historic exploration expenditures), the fuel duty is reduced by 50%, and the Government of Liberia is granted a free carried interest of 10% in the Project.

**ENDS**

Notes to Editors:

Hummingbird Resources (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold production, development and exploration Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production when in operation, scheduled for first gold pour end of Q2 2023. Further, the Company has a controlling interest in the Dugbe Gold Project in  Liberia that is being developed by Pasofino Gold Limited through an earn-in agreement. Our vision is to continue to grow our asset base, producing profitable ounces, while central to all we do being our Environmental, Social & Governance ('ESG') policies and practices. 

For further information please visit   www. Hummingbird   or contact:

Daniel Betts, CEO Thomas Hill, FD Anthony Kocken, COO Edward Montgomery, CSO & ESG	Hummingbird Resources plc	Tel: [phone]
James Spinney Ritchie Balmer	Strand Hanson Limited Nominated Adviser	Tel: [phone]
James Asensio Thomas Diehl	Canaccord Genuity Limited Broker	Tel: [phone]
Bobby Morse Ariadna Peretz James Husband	Buchanan Financial PR/IR	Tel:  [phone] Email: [e-mail]

 

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[1] Pasofino Gold announcement dated 18^th August 2021

[2] Pasofino Gold announcement dated 18^th May 2021

 

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