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Optimisation Study Completed at Yanfolila Gold Project, Mali
Hummingbird Resources, the multi-project gold company, has announced the results of its Optimisation Study which highlights the increased size, extended life of mine and robust economics of the Yanfolila Gold Project in Mali and the defined path to production in H1 2016, with construction commencing on time in H1 2015.
Optimisation highlights:
· NPV US$72.4m (post tax, 8%, US$1,250/oz gold)
· IRR 35.1%
· 100,000oz year 1 full production after ramp up and 79,000oz p.a. over the 6.5 year LOM
· 2.64g/t LOM grade over initial LOM
· US$641/oz C1 cash operating costs and all-in sustaining costs US$733/oz
· US$71.6m capex for a larger and longer life 1 Mtpa project
· Production due in H1 2016 following 12 month construction schedule
· Opportunities identified to significantly improve economics and extend LOM
Mine construction highlights:
· Construction scheduled to commence shortly
· Initial work to include:
o Plant earthworks
o Mine infrastructure development
o Grade control and further infill drilling
· Detailed update on construction programme to follow
Dan Betts, CEO of Hummingbird Resources, said, “The Optimisation Study shows a low-cost, low technical risk and quick route to gold production for Yanfolila with robust economics. The initial target is 100,000oz of gold for the first year of full production after ramp up with a LOM production of 79,000oz/year and an all-in sustaining cash cost of US$733/oz from a 1Mtpa plant. In addition, there are multiple options to significantly increase the project economics and LOM, and importantly we have the team with the operational experience to achieve this.
“We are looking forward to extending the bridge imminently with Taurus while they finalise due diligence and documentation for the full draw down. Construction is expected to commence this month and we look forward to delivering a mine and generating significant free cash and strong returns for shareholders.”
Nick Farr-Jones, Director of Taurus Funds Management Mining Finance Fund said, “We are pleased with the continued progress that has been made through the Optimisation Study process since our provision of the US$10m Bridge Finance Facility in September last year. We have communicated our willingness to increase the size of this Facility to US$15m to assist in progressing physical works required prior to the onset of the wet season as we finalize our legal and technical due diligence for the larger Project Construction Facility.”
Optimisation study:
Hummingbird Resources has received the results of its optimisation study at its Yanfolila Gold Project located in Mali. The study, which highlights the robust economics of the project, includes the finalisation of detailed plant engineering and process design work, enhanced geotechnical, hydrological and hydrogeological studies, as well as a robust mine plan, which will allow for the commencement of mine construction in H1 2015. This is scheduled to take 12 months, leading to first gold in H1 2016.
