TIDMHUM
RNS Number : 4939U
Hummingbird Resources PLC
01 August 2022
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
1 August 2022
Hummingbird Resources plc
("Hummingbird" or the "Company")
Dugbe Gold Project Update
Hummingbird Resources plc (AIM: HUM) is pleased to announce that
Pasofino Gold Ltd ("Pasofino") has filed, on SEDAR, its Feasibility
Study ("FS") in respect of the Dugbe Gold Project ("Dugbe") in
Liberia.
Further to the Company's announcement on 13 June 2022, now that
the option exercise conditions have been satisfied, Pasofino may,
within 120 days from the date of its press release dated 1 August
2022 , deliver the option satisfaction notice (the "Notice") to
Hummingbird. Upon delivery of the Notice, Pasofino would, pursuant
to the earn in agreement, acquire its 49% interest in the Project
(prior to the issuance of the Government of Liberia's 10% carried
interest).
Following Pasofino's acquisition of its 49% interest in the
Project, both companies will have the right to exercise the option
to consolidate ownership by converting Hummingbird's 51% ownership
of the Project for a 51% shareholding in Pasofino, such that
Pasofino would own 100% of the Project (prior to the government of
Liberia's 10% carried interest), subject to the receipt of all
required approvals including from the TSX Venture Exchange.
A strategic review of options to best realise the maximum value
of the Project for all stakeholders is underway.
Dan Betts , CEO of Hummingbird Resources, commented: "We are
excited by the results of the FS and the huge potential of the
Dugbe project. As previously highlighted the 2,500km land package
along the Dugbe shear zone has huge exploration potential above and
beyond this FS. Hummingbird and Pasofino are now working closely
together to review the strategic options for the Dugbe project with
the goal to realise long-term value for our stakeholders."
Dugbe Feasibility Study Highlights:
-- 5Mtpa throughput, for a potential mine life of 14 years
-- Estimated head grade of 1.30 g/t over the life of mine
-- Average annual production of ounces of 200,000 ounces ("koz")
for the first five years with a Life of Mine Average of 172koz
-- Average Estimated Recovery of 83% for the combined Tuzon and Dugbe F pits
-- A start-up capital cost of US$435 million
-- A post tax NPV at 5% of US$524 million, for a gold price of $1,700/oz
-- Life of mine AISC of US$1005/oz
-- A post tax IRR of 23.6%
-- A 3.3 year payback period
-- The Mineral Reserve Estimate has 66Mt at a grade of 1.30 AU G/t with a total of 2,760koz
-- Life of Mine strip ratio of 4.02
About The Dugbe Gold Project
The 2,559 km (2) Dugbe Gold Project is in southern Liberia and
situated within the southwestern corner of the Birimian Supergroup
which is host to the majority of West African gold deposits. To
date, two deposits have been identified on the Project; Dugbe F and
Tuzon discovered by Hummingbird in 2009 and 2011 respectively. The
deposits are located within 4 km of the Dugbe Shear Zone which is
thought to have played a role in large scale gold mineralization in
the area.
A large amount of exploration in the area was conducted by
Hummingbird up until 2012 including 74,497 m of diamond coring.
Pasofino drilled an additional 14,584 metres at Tuzon and Dugbe
during 2021. Both deposits have Mineral Resource Estimates dated 17
November 2021. Following the completion of the Definitive
Feasibility Study in June 2022 a Mineral Reserve Estimate was
declared, based on the open-pit mining of both deposits over a
14-year Life of Mine.
In addition, there are many gold prospects within the Project
including the Bukon Jedeh area acquired in late 2020. Here
artisanal mining has extracted gold since the 1930's and includes
currently active open pits over 20 m deep working fresh bedrock. At
the DSZ target on the Tuzon-Sackor trend Pasofino has discovered a
broad zone of surface gold mineralisation in trench and outcrop
along strike from Tuzon. At this and several of the other prospects
no drilling has been carried out to date.
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.
For further information please visit www.hummingbirdresources.co.uk or contact:
Daniel Betts, Hummingbird Resources Tel: +44 (0) 20
CEO plc 7409 6660
Thomas Hill,
FD
Anthony Köcken,
COO
Edward Montgomery,
CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20
Ritchie Balmer Nominated Adviser 7409 3494
---------------------- ----------------------------
James Asensio Canaccord Genuity Tel: +44 (0) 20
Gordon Hamilton Limited 7523 8000
Broker
---------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20
Ariadna Peretz Financial PR/IR 7466 5000
George Cleary Email: HUM@buchanan.uk.com
---------------------- ----------------------------
Notes to Editors:
Hummingbird Resources plc (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 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. The final feasibility results on Dugbe showcase 2.76Moz
in Reserves and strong economics such as a 3.5-year capex payback
period once in production, 14-year life of mine at a low AISC
profile of US$1,005/oz. 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.
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