Yanfolila Mine Operational Update

RNS Number : 6446V

Hummingbird Resources PLC

15 December 2021

 

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

15 December 2021

Hummingbird Resources plc

("Hummingbird" or the "Company")

Yanfolila Mine Operational Update

Hummingbird Resources plc (AIM: HUM) provides an operational update on the Yanfolila mine in Mali ("Yanfolila" or "the mine") following the Company's release on 1 December 2021, notifying that the mine is back in operation.

Key updates:

· As per the release dated 1 December 2021, mining and processing operations have recommenced, having ceased operations for approximately six days, with all employees and contractors safely accounted for

· The Company is in the process of returning the mine operation to a more normalised level of production, with further details on the current work programmes provided below

· As a precautionary measure, increased security, including the presence of National Mali Government personnel, will remain in place as Yanfolila ramps up production

· Furthermore, in relation to the Company's mining contractor excavator availability issues detailed in the Company's Q3 2021 Operational and Trading Update, the Company notes that two of the larger excavators, of a fleet of seven, that were unavailable for most of September, are back online. However, the mining contractor's excavator fleet is failing to perform consistently to the scheduled mining volume rates. Accordingly, the Company is seeking to mitigate this risk with our mining contractor by:

o  Carrying out a detailed review of the overall contractor equipment maintenance procedures and equipment status

o  Seeking to bring in additional excavators to increase availability, optionality, and allow better maintenance of existing equipment. One additional unit is expected to be delivered and operational before year end

· As noted in the 29 November 2021 release, t he Company advised that the full year production forecast would be below the bottom end of the 2021 guidance range. Current gold poured for the year is currently over 82,000 ounces ("oz") (unaudited). Due to the above circumstances, the Company now expects full year 2021 production of 84,000 to 89,000 oz at All in Sustaining Cost ("AISC") range of US$1,490 to US$1,590 per ounce

· The Company will provide a more detailed operational update post year end, in the Q4 2021 and 2022 outlook statement, including convening a call with investors, and which is scheduled to be released late January 2022

Anthony Köcken , COO of Hummingbird, commented:  

"Though the disruption caused by a small minority has impacted our operations at Yanfolila, our focus on protection protocols of our employees, contractors and host communities has been effective. Hummingbird is working collaboratively with our host communities seeking to ensure that such disruptions do not happen again. The key focus for the Company at Yanfolila as it moves into the year end is to continue to run the operations safely for the benefit of all stakeholders, executing efficiently on the current mine plans and providing the platform for a more sustainable operational performance in 2022 and beyond."

Dan Betts, CEO of Hummingbird, commented:

"Despite the challenges at Yanfolila during the quarter, the Company is installing mitigating measures to ensure a more sustainable production profile at the mine. We are currently finalising our 2022 budgeting programmes with a focus on providing increased production flexibility at Yanfolila, with the goal being to improve free-cash flow generation from the mine and continuing with the Company's overall growth plans.

We are cognisant of providing investors with more details, and once the year is complete, we will be providing the opportunity for a Q&A session with senior management post the release of the Company's Q4 2021 and 2022 outlook statement, scheduled for late January 2022."

Security presence

Increased security and the presence of National Mali Government personnel has led to an overall slowing of the movement of people and equipment as these security measures remain in place. As a precautionary security measure, when operations restarted, mining could not run on a 24-hour basis as is normal. However, we note operations are now running on 24-hour a basis, albeit currently at slower rates as operations continue to ramp up.

Restarting Operations

As noted above, the Company is currently in the process of returning of Yanfolila to more normalised levels of production. Work is ongoing and further details of completed workflows are provided below;

· The Company has completed the dewatering of the key operating pits, Komana East and Komana West, which saw water ingress into these pits due to the equipment being unable to be manned and maintained during the unrest period. This initially impacted the ability to operate as planned however, both pits are now back in operation

· The ramping up of the processing plant since recommencing operations has been gradual, in line with the availability of ore supply from operating pits as they recover to more normal levels

· The Company has restored Yanfolila's regular gold pours which were temporarily ceased during the unrest

· Supply chain checks have been finalised. The Company reports minimal ongoing impacts on crucial supply chain requirements, including fuel; food; reagents and critical spares

· A full review of plant and equipment has been implemented with limited damage reported and all required repairs completed

**ENDS**

Notes to Editors:

Hummingbird Resources (AIM: HUM) is a 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 production, 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   https://www.hummingbirdresources.co.uk/ or contact:

Daniel Betts, CEO Thomas Hill, FD Anthony Köcken , 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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