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 (80%).

The government of Mali is expected to pay Hummingbird $11-million for an additional 10% stake in Yanfolila.

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 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 for the processing and recovery of the gold, which averages 92.5% over the LoM.

Jobs to be Created
The project currently has more than 700 people on site.

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 (capex) 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
Preproduction mining has started at the Yanfolila project.

The preproduction mining, which is being undertaken by contractor African Mining Services (AMS), will ramp up over the next three months. By the end of November, Hummingbird expects more than three-million tonnes of material to have been moved.

During the first phase of mining, there will be areas of free dig material and material that will require light blasting. Blasting will be conducted using nonelectric downhole delay detonators, with ammonium nitrate fuel oil for dry holes and emulsion explosives for wet holes. 

AEL Mining Services will supply and store the explosives.
 
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 facilities, or TSF); Afromix (agitators); Delkor (linear screens); Kemix (regeneration kiln and interstage screens); Metso (primary and secondary crushers, screens and feeders); AMS (TSF); Zen Petroleum Mali (fuel supply), AEL Mining Services (explosives and explosives storage).

On Budget and on Time?
The project remains on budget and on schedule for its first gold pour by the end of this year.

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