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Dugbe gold project, Liberia – update
Name of the Project
Dugbe gold project.
Location
South-eastern Liberia.
Project Owner/s
Hummingbird Resources.
Canadian miner Pasofino Gold has an earn-in agreement for a 49% stake in the Dugbe project, with Hummingbird maintaining a controlling interest of 51%.
Project Description
A preliminary economic assessment (PEA) has established Dugbe as a foundation for a new gold district in Liberia.
The project comprises the Tuzon and Dugbe F deposits, both of which are amenable to openpit mining.
The planned openpits will be mined using conventional truck-and-shovel methods to supply mill feed to the run-of-mine tip, near Tuzon, and waste to the respective pits’ waste stockpile facilities.
The processing plant design has been based on a typical semiautogenous grinding and ball milling circuit, followed by a carbon-in-leach (CIL) gold recovery circuit.
The PEA envisages a five-million-tonne-a-year operation producing an estimated 2.5-million ounces of gold a year over a 14-year mine life.
Steady-state production is estimated at 188 000 oz/y, with peak production of 226 000 oz in Year 8 of operation.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The PEA has estimated a pretax net present value, at a 5% discount rate, of $825-million and an internal rate of return of 34%, at a conservative base gold price of $1 600/oz.
Payback is estimated at 2.8 years (undiscounted).
Capital Expenditure
Initial capital expenditure is estimated at $391-million.
Planned Start/End Date
Not stated.
Latest Developments
A detailed feasibility study (DFS) on the Dugbe project is expected to be issued soon by earn-in partner Pasofino, after which the company will carefully review its best options in terms of advancing the project.
Key Contracts, Suppliers and Consultants
DRA Global (lead consultant); SRK Consulting; and Epoch Resources (PEA).
Contact Details for Project Information
HUmmingbird Resources, tel +44 20 7409 6660 or email hum@buchanan.uk.com.
Pasofino Gold, tel +1 416720 2540 or email contact@pasofinogold.com.