Hummingbird Resources Acquire the Kouroussa Gold Project in Guinea, Raises Funding for the Dugbe Project in Liberia
Monrovia – Hummingbird Resources plc (AIM:HUM) has signed a binding heads of terms agreement for the acquisition of the Kouroussa Gold Project located in Guinea, from Cassidy Gold Corp, subject to standard conditions precedent including Government approval.
The Kouroussa Gold Project, a near term development asset in the prolific Siguiri Basin, has a high-grade mineral resource of 1.18Moz of gold at >3g/t.
The acquisition of the Project turns Hummingbird into a near term multi-asset producer with jurisdictional diversification in line with the Company’s strategy
The company has targeted the first gold production within 2 years, with production of circa 100,000oz per annum and AISC of circa US$800 over an initial 5 year Life of Mine (“LoM”)
Similar metallurgical flow sheet and process plant design to Yanfolila allows Hummingbird to leverage construction and operational expertise gained to date.
The estimated capital development cost of circa US$90m for plant construction, mine development and all associated infrastructure
Significant exploration potential is known to exist at depth beneath the Koekoe deposit with another 6 high priority targets identified from intersections which require follow up work or surface bulk sampling results
The Letter of Intent from the Company’s West African Bankers, Coris Bank International, to provide up to US$100m for the development of Kouroussa as deemed necessary and according to the company’s funding strategy, subject to due diligence and credit committee approval
Hummingbird is well established and stable mining jurisdiction with a number of world class bauxite and gold mines owned and operated by major international companies
THE DUGBE PROJECT LIBERIA
In Liberia, Hummingbird has a conditional earn-in agreement with ARX Resources Limited (“ARX”) in respect of the Company’s Dugbe Gold Project. The deal requires ARX to complete a Definitive Feasibility Study, carrying out a significant exploration programme and covering all Project costs over the 2-year earn-in period (the “Earn-in”). The Earn-in entitles ARX to earn up to a 49% interest in the Project, and is subject to various conditions.
Dan Betts, CEO of Hummingbird, commented: “As anybody who has been involved with, or observed, Hummingbird since 2007 will know, the origin of the Company is in exploration in Liberia and particularly the Dugbe Gold Project. Hummingbird was the first mover into eastern Liberia, pioneering exploration in a region that had never been mapped and the geology was not known at all. It is to the immense pride of all who have been involved in that journey that we were able to discover not only the significant mineral resource at the Project but what we believe to be a district scale gold province of potentially global significance.
“Equal to that pride has been our frustration. Ultimately the Project was seen by many as too large, and ultimately too big for a junior to develop. I am proud of the fact we were nimble enough to change direction and acquire the Yanfolila project in Mali. Subsequently we have developed, financed, built and operated Yanfolila – and in the process we have learned a great deal about what our strengths and weaknesses are.
“Whilst we continue to believe completely in the potential of the Dugbe Gold Project we also realise that it is a very different project to what we are focused on at Yanfolila. In order to unlock its value, it needs a large investment of capital and management time in both the DFS and to further showcase its exploration potential which was demonstrated when the first 164 holes we drilled all intersected mineralization.
Founded in late 2005, Hummingbird Resources is an African gold producer, developer and explorer, which listed on AIM in December 2010.
Since IPO the Company has significantly grown its global resource inventory from an initial 0.8Moz to 6.4Moz across two countries, Mali and Liberia.