Hummingbird Resources Share Discussion Threads

[catsick] 28/9/2017 13:25

Tiny bit of dilution for the second tranche of shares if they go through with the deal but only an extra 2pct

[zeberdie] 28/9/2017 13:21

No dilution, paid for out of production.

[zeberdie] 28/9/2017 13:19

11 mins Bert speaking on kobada

hxxps://www.voxmarkets.co.uk/blogs/ascent-resources-ast-hummingbird-resources-hum-alba-mineral-resources-alba-blenheim-natural-resources-bnr-chris-bailey-on-imb-tui-sspg/

[bishan bedi] 28/9/2017 12:41

Thank you Chipperfrd, and thank you for doing the next part of my calculation for me!

May I inquire as to why you are so confident in the Kaboda process being performed up to the gravity concentrator?

It makes sense to me if only in terms of the volume reduction being greatest to that point (and consequent trucking being minimalised), but I am always keen to learn.

Best

[chipperfrd] 28/9/2017 12:36

I am only part way through working through the details of this new development and I am now baby sitting. However, it appears pretty clear that the Kobada processing would only consist of the processing up to the output of the gravity concentrator.

That appears to provide c. 5% of the original ore mass.
At the reserve grade of 1.25g/t and with recovery to the gravity conc being c. 82%, that would imply a conc grade of c. 20.5 g/t gold (c. 26.4 oz of contained gold per 40t truck).

Grinding and CIL processing would then be carried out at Yanifolila with the conc from Kobada being fed in at the grinding stage.

If the target for Kobada throughput is to be 50,000 oz/annum, then the first pass through these numbers infer c. 10 return truck trips per day.

Assuming the Mali government buy into their full 20% free carry, HUM would eventually benefit from 40% x 50,000 ~ 20koz of gold sales once they have fully recovered their pre-production CAPEX in Kobada.

Chip

[bishan bedi] 28/9/2017 12:11

A question for any process engineers who might be out there. I am interested in these sorts of things.

Up to what point would the ore be processed at the Koabada site before being trucked over to Yanfolila? The gravity concentration stage?

Thanks in advance

[zeberdie] 28/9/2017 10:49

hxxp://www.stockhouse.com/companies/bullboard?symbol=v.agg

[charles clore] 28/9/2017 10:18

I can't see the latest chart pattern concluding at less than 40p and possibly as much as 43p - and that's before production starts in earnest.

[catsick] 28/9/2017 09:46

It is interesting to me that the ore is so easy to concentrate, if they can prove that they can concentrate down to a very high grade it means the plant can run for ever basically as they can bring in concentrated ore from a massive radius, will be interesting to see the capex reduction for doing it this way, could be very significant for the long term being able to operate in this fashion.

[rickyhatton] 28/9/2017 08:40

Kobada

"The 2.2Moz resource stretches over 4km within a larger 12km strike length that has not been properly tested ▪ An additional 30km of shear zone structures have been identified on the property and have yet to be explored

Significant resource growth opportunities on the mining and exploration licences.
Current resources (4 km strike) only cover 33% of total mineral strike length identified on the Kobada Main Shear Zone"

[zhockey] 28/9/2017 08:21

It makes more sense to me to buy AAG shares and get some discounted HUM stock down the road.

[zhockey] 28/9/2017 07:59

Go to stockhouse and search for AAG

[darola] 28/9/2017 04:04

Hi zh, can you post the link for the Canadian board?

Thanks

Some interesting numbers in this piece from 2011. Also indiicates the potential for huge upside, makes me wonder what options HUM have to extend Yanfolila plant above the current 150k? Add in Gonka and they'll either be processing for 20+ years or need to up the throughput.

[catsick] 28/9/2017 03:37

Looking at the kobada feasibility study there is probably 25-30m of capex to build the mine to produce concentrates, it is actually pretty close and can probably barge ore instead of trucking if needed, I think this looks like an excellent bolt on the the yanfolila project

[zhockey] 27/9/2017 21:27

There's talk on the Canadian boards of Kobada potentially holding 5M oz. Lots of exploration upside.

[catsick] 27/9/2017 21:11

Haha I was pulling the trigger as I posted my first post there, I guess we were both buying at the same time, I think this one has gone under the radar in Canada, some of the grades at the surface are very good so they can probably get a decent ammt of 20g per ton stuff done in the early days, the is a lot of ore in the area so the hum plant will have plenty to process for years to come, optioning decent volumes like this is a good idea for hum and a game changer for agg who get to be a cashed up producer for very little dilution

[catsick] 27/9/2017 21:03

Managed to buy a bunch of agg on the tsx at 6.5 as hum are paying 9 for them it seems like good value and a transformative deal for the minnow who now get this jv fully funded by hum, Looking at agg it has some very heavy hitters recently on board ( who also paid 9c for 17 pct of the co ) I think hum will absorb them once the cash is flowing from the mine in a few months ...

[zhockey] 27/9/2017 20:59

Indeed Westie!

Catsick I think this is a cracking deal for AGG, free carry and 50% of cash flow. At £15M mcap what is not to like?

As you say, I expect HUM to take out AGG, the placing announced was 50% over the market price, how often do you see that on AIM?

[darola] 27/9/2017 20:52

Given that aag is st 0.065 and HUM have agreed to pay 0.09 there's easy another 40% to come....

[westmoreland lad] 27/9/2017 20:43

Hi Zhockey and thanks for that. Hope you have made a smart move, and o/t, heals any sore wounds that may have been incurred in the Porcupine Basin.

[zeberdie] 27/9/2017 20:26

Catsick I'm sure your numbers are off. it's only around 100kms and I'm sure the concentration will be 20 +gt

[zhockey] 27/9/2017 20:09

Well I've bought some AGG shares. You've got an hour left on TSX if interested. Their market cap is only arround £10M from what I can see so looks like a 5-10 bagger potential based on this deal.

[catsick] 27/9/2017 20:03

Here is the most recent agg presentation http://www.africangoldgroup.com/aggwp/wp-content/uploads/2017/07/AGG-Presentation-September-20-2017.pdfLooks like the have easy to mine shallow oxide of around 1.4 g/ton that will cost only a few usd per ton to dig up, they can then gravity separate off 70 percent of the free dug ore to produce 5g per ton concentrated ore cheaply which can then be trucked to the HUM plant, as this ore will be worth arount 150 usd per ton in contained gold trucking a few 100 kms will be feasible and should cheaply add to the mine life as HUM can process this ore for many years, AGG is a minnow with less than 20 cad mcap on the tsx, I would imagine a share swap down the line to take over the whole thing as there will be ore transfer pricing issues to agree etc.... on the surface looks like a fairly cheap option on a load of ore, although if the concentration to 4-5g ton cant be done easily by gravity then the trucking of ore becomes marginal ...

[westmoreland lad] 27/9/2017 19:49

Very nice piece of unexpected news with a useful add on to an already great
investment, and where ''The partnership is a win-win for both groups''