Name and Location
Yanfolila gold project, Mali.

Client
Hummingbird Resources.

Project Description
Hummingbird has completed an optimised mine schedule, which has improved the Joint Ore Reserves Committee-compliant ore reserve statement and updated economic sensitivities based on the new reserve and mine schedule for the Yanfolila gold project.

The project’s reserves have increased from 6.82-million tonnes at a grade of 3.03 g/t of gold in the January 2016 definitive feasibility study (DFS) to 7.04-million tonnes at a grade of 3.14 g/t of gold in the optimised mine schedule.

The DFS financial model has been updated to incorporate the increased ore reserve and new mine schedule, with a resulting improvement in project economics. The project will be developed as an openpit, low-cost gold mining operation.

The Yanfolila gold project comprises two main clusters of ore deposits: Komana East (KE), Komana West (KW), Guirin West (GW) and Gonka (GK), in the south, and Sanioumale East (SE) and Sanioumale West (SW), in the north.

The DFS life-of-mine (LoM) plan envisages the progressive mining of five openpits, starting initially with KE and KW, and then progressing to GW, SE and SW.

Hummingbird is also considering developing the high-grade Gonka resource, initially as an openpit and then as an underground mine.

The plant will have a throughput of 1.24-million tonnes a year, producing up to 121 000 oz/y of gold.

The ore is nonrefractory and the simple process plant design uses gravity and carbon-in-leach (CIL) for the processing and recovery of the gold, which averages 92.5% over the LoM.

Net Present Value/Internal Rate of Return
The project’s net present value (NPV) has increased from $88-million, at an 8% discount rate in the 2016 DFS, to an NPV, at an 8% discount rate, of $162-million.

The project’s internal rate of return has increased from 37% in the DFS to 60% in the optimised mine schedule.

Value
The project estimated capital expenditure has remained the same from the DFS to the optimised mine schedule.

Duration
Not stated.

Latest Developments
The improved project economics will allow the company to better negotiate the final funding package for the development of the mine.

Key Contracts and Suppliers
DRA Projects (DFS); CSA Global (mineral resource and ore reserves reports); Senet (metallurgical testwork, process design and engineering, and capital and operating cost estimates for the processing plant and the associated plant infrastructure); Schlumberger Water Services (hydrology and hydrogeological studies); and Ausenco Engineering Canada (design and cost estimates for the tailings storage facility).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Hummingbird Resources, tel +44 20 3416 3560.
DRA Projects, tel +27 11 202 8600 or email info@DRAglobal.com.
CSA Global, tel +27 11 568 2724, fax +27 11 676 6689 or email csasouthafrica@csaglobal.com.
Senet, tel +27 11 409 1300 or fax +27 11 409 1301.
Schlumberger Water Services, tel +27 11 6841122 or fax +2786 576 6034.
Ausenco Engineering Canada, tel +27 11 258 8591.