TIDMHUM
RNS Number : 7064O
Hummingbird Resources PLC
13 June 2022
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
13 June 2022
Hummingbird Resources plc
("Hummingbird" or the "Company")
Dugbe Gold Project Feasibility Study Results
Pre-Tax NPV5% of US$690 million, Pre-Tax IRR of 26.35% &
AISC of US$1,005/oz over a 14-year LOM
Hummingbird Resources plc (AIM: HUM) is pleased to announce that
Pasofino Gold Ltd ("Pasofino") (TSXV: VEIN) has released the
results of the Dugbe Gold Project Feasibility Study ("FS"), which
is located in Southern Liberia. The FS was prepared by Pasofino's
lead engineers, DRA Global (South Africa), in accordance with
Canadian Securities Administrators' National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101").
For the full Pasofino release details and graphics, please
follow the link here .
Highlights:
-- Strong financial metrics
o Pre-tax NPV5% of US$690 million ("M") (US$530M post-tax),
26.35% IRR (23.6% post-tax) at a base gold price of US$1,700 ounce
("oz").
-- Fast capital payback of approximately 3.5 years from start of production
o Life of mine ("LOM") All In Sustaining Cost ("AISC") of
US$1,005/oz and US$29/t cash cost ([1]) .
o Pre-production capital requirement of US$397M excluding
owners' costs for a 5Mtpa processing plant.
-- Large Mineral Reserve with potential for expansion
o 2.27Moz gold produced over a 14-year LOM.
o Average annual production of 200,000oz for the first five
years.
o 2.76Moz of Mineral Reserves.
o Additional 67 thousand oz ("koz") of Inferred Mineral
Resources within the FS pit and immediate sidewalls, which have not
been included in the Mineral Reserves.
-- Simple project with economies of scale
o LOM strip ratio of 4.21:1, highlighted by a low 3.56:1 ratio
in the first five years.
o Simple (Gravity-CIL) process flow sheet, which enhances
project economics.
o Low power costs of US$0.175/kWh, with opportunities for
long-term savings with alternative renewable energy sources.
-- ESG
o Environmental and social impact assessment ("ESIA") process
nearing completion, with submission to the EPA expected in June
2022.
-- Infrastructure-Ready Project
o Only 76km by road from the Port of Greenville to the Dugbe
Project, which was repaired and improved as part of the FS
process.
o All build and operational cargo to be transported through the
operating Port of Greenville.
o Government supported berthing rights at the Port of Greenville
for the Project.
o Tuzon and Dugbe F deposits are 4km apart, serviced by a
central processing plant.
o LNG power generation hybridised with solar PV power generation
to produce an estimated levelised cost of energy of US$
175.10/MWh.
Dan Betts, CEO of Hummingbird Resources, commented:
"We are delighted to receive the results from the robust FS that
has been conducted by Pasofino. The FS has been conducted to a high
standard and has seen a complete remodelling of the Resource base,
to now showcase a significant 2.76Moz Reserve base, long LOM of 14
years with upside given the material exploration potential
available and a low AISC profile of USD1,005/oz to underpin a gold
mine of material value. We look forward to now working with
Pasofino to conduct a strategic review of our options to best
realise the maximum value of Dugbe for all stakeholders."
Pasofino Earn-In Update
Pursuant to NI 43-101, the FS will be filed by Pasofino at
www.sedar.com within 45 days of this news release. Subject to the
filing by Pasofino of the FS under Pasofino's profile at
www.sedar.com , and final administrative documentation, Hummingbird
has confirmed that the FS has been carried out to the agreed
standards and will satisfy the technical requirements to allow
Pasofino to earn its 49% economic interest in the Project (prior to
the issuance of the Government of Liberia's 10% carried interest).
Further, both Pasofino and Hummingbird 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 the TSX
Venture Exchange.
Mineral Resource Statement
Reasonable Prospects for Eventual Economic Extraction
For both deposits, reasonable prospects for eventual economic
extraction were established based on open pit mining satisfied by
means of a conceptual pit shell. All blocks outside the pits were
excluded from the Mineral Resource Estimate. Key parameters used
for the pit shells were: Gold price of US$1700/oz Au, overall slope
angle of 55 degrees, dilution of 10%, recovery of 90%, mining costs
of US$1.93 per tonne for waste and US$ 2.24 and US$ 2.84 per tonne
for Tuzon and Dugbe F respecti
Combined Mineral Resource Estimate Statement
The combined statement for both deposits is provided in Table 1
subdivided using a 0.5g/t Au grade category and reported above a
lower 'marginal' cut-off grade. Within the 0.5 g/t Au grade
category, the Measured and Indicated tonnage is 75.2Mt grading
1.37g/t Au containing 3.31Moz gold plus an Inferred tonnage of
14.9Mt at 1.23g/t Au containing 588 thousand ounces ("koz") gold.
Although not shown as a grade category in Table 1 , above a 1.0g/t
Au cut-off, the combined Measured and Indicated part of the MRE is
2.88Moz of gold contained in 56.6 million tonnes ("Mt") grading
1.58 grams per tonne ("g/t"), mostly hosted within the HG domain at
Tuzon.
Table 1. Mineral Resource Estimate effective 17 November
2021
Classification Tonnage (Mt) Grade (Au g/t) Contained Gold (koz)
------------------------- ---------------- --------------------- ------------ -------------- --------------------
Subtotal above 0.5 g/t Au 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 Tuzon deposit Measured - - -
between the marginal
cut-off grade and 0.5 g/t
Au
------------------------- ---------------- --------------------- ------------ -------------- --------------------
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 - the above Tuzon deposit Measured
subtotals combined
------------------------- ---------------- --------------------- ------------ -------------- --------------------
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 1.44 56
---------------- ----------------------------------------------- ------------ -------------- --------------------
Indicated 21.0 1.28 863
---------------------------------------------------------------- ------------ -------------- --------------------
Measured + Indicated 22.2 1.29 919
---------------------------------------------------------------- ------------ -------------- --------------------
Inferred 7.40 1.33 318
---------------------------------------------------------------- ------------ -------------- --------------------
TOTAL Measured 1.2 1.44 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 0.34g/t Au for
fresh material and 0.39g/t Au for weathered material. The marginal
cut-off grades for Dugbe F are 0.36g/t Au for fresh material and
0.40g/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)
and 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
2.78t/m(3) for mineralised gneiss and 2.64t/m--(3) for pegmatite in
fresh rock and 2.1t/m(3) for oxide material.
Mineral Reserve Estimate
The Mineral Reserve Estimate (MRev) has been prepared as part of
the Dugbe FS completed by DRA, using the CIM definitions and
guidelines adopted in May 2014 (CIM, 2014) and procedures for
classifying the reported Mineral Reserves were undertaken within
the context of the Canadian Securities Administrators' National
Instrument 43-101 ("NI 43-101")-Table 2.
The Mineral Reserves were derived from the MREs and the block
models presented in the Mineral Resource section. The Mineral
Reserves are based on the Measured and Indicated Mineral Resources
that have been identified as being economically extractable and
which incorporate mining losses and dilution. A summary of the
Mineral Reserves by deposit is shown in the table below.
Though not considered for the Mineral Reserve Estimate there are
Inferred Mineral Resources within the FS pit and in immediate
proximity to it. This material comprises 1.7 Mt at an average grade
of 1.25 g/t Au containing 67 koz and may be converted to Indicated
Mineral Resources with a relatively small number of additional
drillholes. If this is realised, they may then contribute
additional material to future Mineral Reserve Estimates.
Table 2. Mineral Reserve Estimate effective 1 May 2022
Classification Tonnage (Mt) Grade (Au g/t) Contained Gold (koz)
------------------------------- ----------------
Total Mineral Reserve above Tuzon deposit Proven
0.5g/t cut-off
---------------- --------------- ------------ -------------- --------------------
Probable 48 1.35 2,087
---------------------------------------------------------------- ------------ -------------- --------------------
Subtotal 48 1.35 2,087
---------------------------------------------------------------- ------------ -------------- --------------------
Dugbe F deposit Proven 1 1.34 45
---------------- ----------------------------------------------- ------------ -------------- --------------------
Probable 17 1.15 629
---------------------------------------------------------------- ------------ -------------- --------------------
Subtotal 18 1.16 674
---------------------------------------------------------------- ------------ -------------- --------------------
Proven 1 1.34 45
---------------------------------------------------------------- ------------ -------------- --------------------
Probable 65 1.29 2,716
---------------------------------------------------------------- ------------ -------------- --------------------
TOTAL 66 1.30 2,760
---------------------------------------------------------------- ------------ -------------- --------------------
Notes:
8. The effective date of the Mineral Reserve is 1 May 2022.
9. Mineral Reserves are defined within pit designs guided by pit shells.
10. Mineral Reserves are reported at 0.50g/t cut-off grade and a
metal price of US$1,600/oz Au.
11. Figures are rounded to the appropriate level of precision
for the reporting of Mineral Reserves. Due to rounding some columns
or rows may not compute as shown.
12. The Mineral Reserves are stated as diluted dry metric
tonnes. Estimated dilution applied to Dugbe F is 10.1% and Tuzon
6.9%, while estimated losses were 6.3% for Dugbe F and 5.0% for
Tuzon.
13. The Qualified Person is Mr Frikkie Fourie (B.Eng, Pr.Eng,
MSAIMM).
14. The Mineral Reserves have been classified under the
guidelines of the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) .
Capital Cost Estimate
The project capital has been derived predominantly from tendered
costs and rates from the market, as well as relevant database costs
from recent projects, and is summarised in Table 3. Capital is
within the accuracy of a Class 3 Association of the Advancement of
Cost Engineering ("AACE") estimate of (+20 %/-15%).
Table 3. Capital Summary
DIRECT TOTAL US$ M
Process Plant 129
================================== ===========
Process Plant Infrastructure 37
================================== ===========
General Site Infrastructure 77
================================== ===========
Tailings Storage Facility 19
================================== ===========
Access Road 36
================================== ===========
Port Infrastructure 8
================================== ===========
Mining 22
================================== ===========
Sub-Total: Base Estimate Cost 326
================================== -----------
INDIRECT
---------------------------------- -----------
General Indirect Costs 71
================================== ===========
SUB TOTAL: PRE PRODUCTION CAPITAL 397
---------------------------------- -----------
OWNER'S COST
---------------------------------- -----------
Owner's Cost 37
================================== -----------
TOTAL COST 435
---------------------------------- -----------
Note: Rounding may cause totals to differ.
Operating Cost Estimate
The operating costs over life of Project include mine
operations, process plant, TSF and general and administrative
("G&A") costs. Total LoM average operational costs are
estimated to be approximately US$154 million per annum equivalent
to a unit rate of US$29.47t RoM. An overview of operational costs
is presented in Table 4.
Table 4. LOM operating expenditure (columns may not add up due
to rounding)
DESCRIPTION LOM (US$ M) LOM (US$/t)
---------------------- -----------
Processing (Incl TSF) 700 10.71
====================== =========== ===========
Mining 764 11.52
====================== =========== ===========
G&A 100 1.51
====================== =========== ===========
Other 378 5.71
---------------------- ----------- -----------
TOTAL 1,953 29.47
---------------------- ----------- -----------
Economic Outcomes
Table 5 summarises the robust economics for the Project
resulting from detailed engineering across all disciplines.
Table 5. Economic outcomes summary
DESCRIPTION UNITS VALUE
======== =======
Production LoM years 14
============================== ======== =======
Production LoM months 159
============================== ======== =======
Total Ore Tonnes M tonnes 66.27
============================== ======== =======
Total Au Ounces Recovered M Oz 2.27
============================== ======== =======
LoP Average
============================== ======== =======
Throughput t/a 5.00
============================== ======== =======
Au Grade g/t 1.30
============================== ======== =======
Au Recovery % 83.01
============================== ======== =======
Au Ounces Recovered Oz/a 171,594
============================== ======== =======
Initial Capital Cost M US$ 435
============================== ======== =======
SIB Capital Cost M US$ 98
============================== ======== =======
Operating Cost
============================== ======== =======
LoP Average M US$/a 147
============================== ======== =======
LoP Unit Cost US$/t 29
============================== ======== =======
NPV M US$ 690
============================== ======== =======
IRR % 26.35
============================== ======== =======
Payback Period (undiscounted) years 3.3
============================== ======== =======
AISC US$/Oz 1,005
============================== ======== =======
AISC per ton US$/t 34
============================== ======== =======
NPV M US$ 530
============================== ======== =======
IRR % 23.6
============================== ======== =======
Payback Period (undiscounted) years 3.3
============================== ======== =======
AISC US$/Oz 1,005
============================== ======== =======
AISC per ton US$/t 34
------------------------------ -------- -------
Qualified Persons Statement
Scientific or technical information in this disclosure (other
than information that relates to mining, processing and related
infrastructure results) was reviewed by Mr Martin Pittuck, a
full-time employee of SRK Consulting UK Ltd. Mr Pittuck is a member
in good standing with the Institute of Materials, Minerals and
Mining, a Fellow of the Geological Society of London and is a
Chartered Engineer; he has sufficient experience that is relevant
to the commodity, style of mineralisation under consideration and
activity which he is undertaking to qualify as a Qualified Person
under National Instrument 43-101.
Scientific or technical information in this disclosure that
relates to processing and related infrastructure results was
reviewed by Mr Robin Welsh, a full-time employee of DRA Global. Mr
Welsh is a Professional Engineer in good standing with the
Engineering Council of South Africa and has sufficient experience
that is relevant to the project under consideration which he is
undertaking to qualify as a Qualified Person under National
Instrument 43-101.
Scientific or technical information in this disclosure that
relates to metallurgy and processing results was reviewed by Mr
Marius Phillips, a full-time employee of DRA Global. Mr Phillips is
a Chartered Professional Member of the Australasian Institute of
Mining & Metallurgy and has sufficient experience that is
relevant to the project under consideration which he is undertaking
to qualify as a Qualified Person under National Instrument
43-101.
Scientific or technical information in this disclosure that
relates to mining results was reviewed by Mr Frikkie Fourie, an
independent consultant for DRA Global. Mr Fourie is a Professional
Engineer in good standing with the Engineering Council of South
Africa, is a Member of the South African Institute of Mining and
Metallurgy and has sufficient experience that is relevant to the
project under consideration which he is undertaking to qualify as a
Qualified Person under National Instrument 43-101.
Scientific or technical information in this disclosure that
relates to tailings storage facility results was reviewed by Mr Guy
Wiid, a permanent employee for Epoch Resources. Mr Wiid is a
Professional Engineer in good standing with the Engineering Council
of South Africa, and a Chartered Engineering good standing with the
American Society of Civil Engineers and has sufficient experience
that is relevant to the project under consideration which he is
undertaking to qualify as a Qualified Person under National
Instrument 43-101.
Scientific or technical information in this disclosure that
relates to environmental, social and governance results was
reviewed by Ms Fiona Cessford-Le Roux, a full-time employee of SRK
UK. Ms Cessford-Le Roux is a Chartered Environmentalist in good
standing with and a fellow of the Institute of Materials, Minerals
& Mining of the United Kingdom She has sufficient experience
which is relevant to the project under consideration which she is
undertaking to qualify as a Qualified Person under National
Instrument 43-101.
Scientific or technical information in this disclosure that
relates to financial results was reviewed by Mr Juan Kotzee, an
independent consultant for DRA Global. Mr Kotzee is a Financial
Accountant, and has sufficient experience that is relevant to the
project under consideration which he is undertaking to qualify as a
Qualified Person under National Instrument 43-101.
Noris Del Bel Belluz, Group Technical Services Manager for the
Hummingbird, and is a qualified person, according to the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves ("JORC Code, 2012 Edition") and
"Qualified Person" as defined by Part 1 of NI 43-101 Standards of
Disclosure for Mineral Projects (30 June, 2011 Edition) .
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, CEO Hummingbird Resources plc Tel: +44 (0) 20 7409 6660
Thomas Hill, FD
Edward Montgomery, CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer Nominated Adviser
-------------------------- ----------------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523 8000
Thomas Diehl Broker
-------------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20 7466 5000
Ariadna Peretz Financial PR/IR Email: HUM@buchanan.uk.com
James Husband
-------------------------- ----------------------------
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold production, development and exploration
Company and member of the World Gold Council ("WGC"). Hummingbird's
vision is to continue to grow its asset base, producing profitable
ounces, while continuing to focus on its Environmental, Social
& Governance ("ESG") policies and practices. The Company
currently has two core gold projects, the producing Yanfolila Gold
Mine in Mali , and the Kouroussa gold development project in Guinea
. 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.
([1]) Cash costs per payable ounce and AISC per payable ounce
are non-IFRS financial measures. Please see "Cautionary Note
Regarding Non-IFRS Measures". AISC per payable ounce includes all
mining costs, processing costs, mine level G&A, royalties,
sustaining capital and closure costs. Cash costs per payable ounce
includes all mining costs, processing costs, mine level G&A and
royalties.
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MSCFJMATMTIBBBT
(END) Dow Jones Newswires
June 13, 2022 11:44 ET (15:44 GMT)
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