Name of the Project
Yanfolila gold project.

Location
The 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 of 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 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 107 000 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.

Jobs to be Created
Not stated.

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’s estimated capital expenditure has remained at $79.36-million from the DFS to the optimised mine schedule.

Duration
Initial gold pour is targeted for the end of 2017.

Latest Developments
Hummingbird Resources has secured a four-year $60-million senior secured term debt facility with West Africa-based Coris Bank International to fund the ongoing construction of the Yanfolila gold mine.

The new debt agreement has replaced the funding line previously anticipated with Taurus and has provided the company with sufficient working capital to complete the mine build at a lower cost and without any royalty commitment, Hummingbird CEO Dan Betts has said.

The terms of the loan with Coris Bank International are more flexible than the previous arrangement and much better aligned to Hummingbirds strategy of growth. Betts has noted that the $25-million bridge loan facility with Taurus Mining Finance Fund has been repaid and the mandate for further finance has been terminated.

The lower-cost and zero royalty commitment will result in a material saving for Hummingbird over the life of the mine.

The new facility can be drawn on as required, with a 9% fixed interest rate and 12-month capital repayment deferral.

An initial $25-million is being drawn immediately, with the balance expected to be drawn over the next five months.
 
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); Afromix (agitators); Delkor (linear screens); Kemix (regeneration kiln and interstage screens); Metso (primary and secondary crushers, screens and feeders).

On Budget and on Time?
The project is still on budget and scheduled for first gold pour by the end of this year.

Contact Details for Project Information
Hummingbird Resources, tel +44 20 3416 3560.