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 has increased its ownership in the project from 75% to 80%, after acquiring a further 5% interest and a 1% royalty from La Petite Mine d’Or for $1-million during the six months ended June 2017.

Hummingbird will pay La Petite Mine d’Or $2-million in shares, which are to be issued by March 31, 2018.

Further, the government of Mali is expected to pay Hummingbird $11-million for an additional 10% stake in Yanfolila. This will increase government’s shareholding in the project to 20%.

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.

Currently the Yanfolila crushing circuit is a two-stage operation, incorporating primary and secondary crushing circuits designed to treat mainly oxides and a blend of oxide and transition ores. A second ball mill will increase throughput capacity from one-million tonnes a year to 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.

Potential Job Creation
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
The project poured its first gold in December 2017.

Latest Developments
Hummingbird Resources has announced its third set of drilling results from the recently completed exploration campaign at the Yanfolila gold mine.

The drilling was aimed at converting resources to reserves and, in time, extending the mine life.

Intercepts at the Gonka deposit included 18 m at 9.39 g/t gold from a 156 m depth; 4.3 m at 29.74 g/t gold from a 250 m depth; 3 m at 12.89 g/t gold from a 137 m depth; and 13.6 m at 2.56 g/t gold from a 34 m depth.

The drilling programme largely focused on the resource definition at Gonka, with some further follow-up drilling at Komana West.

Hummingbird has reported that the latest results demonstrate high-grade potential and continued exploration potential at depth.

On completion of the 2018 drilling programme, the total metres drilled was 28 349 m.

The company in December announced a stand-out intercept of 15 m at 16.03 g/t gold.

Hummingbird is integrating the positive results seen in its exploration programme into its mine plan.

The Gonka deposit is situated 5 km from the process plant, making it suitable to be included in the current mine plan. Once resource modelling and mine planning is completed, the company can mine Gonka immediately, since it falls within the mining licence area.

“A 2019 drilling programme will target the down dip extensions to Gonka to expand the resource and reserves. A thorough review of the database to identify new greenfield targets is also under way and this is expected to yield high-priority targets to drill test outside the current seven deposits that have resource associated with them,” chief geologist Murray Paterson has confirmed.

Meanwhile, Hummingbird has reported that the construction of the second ball mill at the Yanfolila mine is progressing to plan with about one-third of the project having been completed as at the end of December 2018 and within budget. Excavation earthworks for the mill raft started at the end of 2018 and are ongoing with civil works under way. The project is due to be completed in the third quarter of 2019.

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.