Hummingbird Resources plc / Ticker:
HUM / Index: AIM / Sector: Mining
16 April
2024
Hummingbird Resources
plc
("Hummingbird", the "Group", or the
"Company")
Operations Update and Roadmap to Commercial
Production at Kouroussa
Hummingbird (AIM: HUM) provides an
update regarding operations at the Kouroussa Gold Mine
("Kouroussa") in Guinea and outlines the Company's roadmap to
achieving commercial production in FY'24.
As previously announced on 18 March 2024,
Corica Mining Services ("Corica"), the principal contract miner at
Kouroussa, suspended mining activities on 17 March 2024, citing
various contractual disputes.
Summary
Kouroussa Mine, Guinea
· The Company has
continued to engage with Corica, with constructive discussions
ongoing surrounding the resolution of the key disputes. The aim of
these discussions remains to get Corica to return to Kouroussa and
ramp-up operations under the existing mining contract between
Hummingbird and Corica (the "Corica Contract" or
"Contract").
· In parallel with
this, the Company is progressing with the restart and ramp up of
mining activities at Kouroussa, with the goal of achieving
commercial production as soon as possible. To accomplish this,
several significant steps have been taken:
o Due to the
ongoing suspension, a formal Step-In Notice was issued by the
Company, allowing the Company to take contractual control of
operations at Kouroussa and issue direct instructions to Corica and
its third-party contractors and, if necessary, appoint alternative
operators or contractors.
o The Company has
entered a short-term contract with the West African contractor,
Etablissement Adama Sidibé ("ETASI"), to enhance their already
active support fleet and accelerate mining activity at Kouroussa as
operations commence the near-term mining of high-grade
ore.
o The Company is
also in discussions with additional operators and contractors,
alongside the ongoing discussions with Corica, to maximise the full
range of mining activities required to reach full commercial
production as soon as possible in order to leverage the current
strong gold pricing dynamics and near-term operational platform at
Kouroussa.
o Drilling and
blasting operations at Kouroussa have recommenced on an interim
basis to allow mining to access the high-grade regions of the
Koekoe deposit, which has been demonstrated by the recent grade
control intercepts.
· Since 18 March
2024, operations at Kouroussa have continued with the processing
plant operating at the expected levels with mining via the small
existing ETASI support mining fleet and the Company has achieved
several weekly gold pours averaging c.700 oz per week.
Yanfolila Mine, Mali
· The Yanfolila
Gold Mine, Mali, continues to operate in line with expectations and
within the FY-2024 guidance of 75,000 - 85,000 oz at an AISC of
under US$1,500/oz. Further operational updates will be provided at
the Q1-2024 operational and trading update later this
month.
Hummingbird continues to work closely
with the Company's primary lender, Coris Bank International
("Coris"), which remains fully supportive of the business,
surrounding the mitigation of the financial impacts of the ongoing
disruptions.
Dan Betts, CEO of Hummingbird,
commented:
"Despite ongoing discussions with Corica, we
have taken the action to issue a Step-In Notice to Corica to
mitigate the current impacts of the temporary suspension. We remain
resolute of our contractual rights and this move allows us to
assume control and mobilise resources, whilst discussion remain
ongoing with Corica, to resume mining activities at Kouroussa and
enter the high-grade material at the Koekoe deposit.
The strategic actions we have taken, including
the growing of our partnership with ETASI, an operator we have
worked closely with in the past, has meant that we are able to
recommence the ramp-up of production towards commercial production
and is a testament to the resilience and experience of our team to
deal with the numerous challenges we have faced over the last four
weeks.
Over this period, Kouroussa has demonstrated its
strategic significance and potential, especially in the current
gold pricing environment, through the weekly gold pours despite the
significantly reduced mining fleet and the clear visibility of
high-grade material that is well within reach. I am also encouraged
by the continued performance of the team at our Yanfolila mine,
which stands as a testament to the team's hard work over the past
18 months. As we move forward, our adaptability and the strong
support from our partners, reinforces my confidence in our ability
to achieve our strategic corporate objectives to become a 200,000
oz pa gold producer."
Step-In Notice
With the ongoing suspension of operations by
Corica at Kouroussa, the Company has decided to exercise its
contractual right to step into the Corica Contract to mitigate the
current impact on operations at Kouroussa.
The Step-In Notice allows Hummingbird to take
management control and issue instructions to Corica and those
operating under the Contract. Should Corica or its third-party
contractors be unable to meet these instructions, the Step-In
Notice provides Hummingbird the right to appoint alternative
operators or contractors to meet the requirements of the
Contract.
Hummingbird notes, the Step-In Notice is not a
termination of the Contract and with the ongoing constructive
dialogue with Corica, the Company is seeking to find a resolution
of the disputed claims in order that Corica returns to work.
However, with the current situation adversely impacting operations,
it was necessary for the Company to issue the Step-In Notice for
the benefit of all stakeholders.
Roadmap to Commercial Production
The Company has engaged West African mining
contractor ETASI, which the Company has worked with historically
and is currently operating the support fleet on site, to provide
further operational equipment to increase mining volumes and
ramp-up progress towards commercial operations.
The Company expects the additional ETASI fleet
to be mobilised shortly and commissioned at Kouroussa over the
coming weeks. The Company is also engaged in discussions with
alternative operators, contractors, and suppliers to provide
further near-term operational support.
Operational Update
Over the past weeks, the ETASI support fleet
has continued to operate with the processing plant handling the ore
along with stockpiled material. During this period, Kouroussa has
seen an improvement in feed grade and achieved several strong
weekly gold pours despite the reduced mining volumes. This improved
grade is attributed to mining operations entering the transitional
zone of the Koekoe deposit, which in turn boasts higher
grades.
At the current relative level ("RL") of 347.5
meters from the bottom of the final pit level, the upcoming blasts
(which had previously been delayed due to the suspension of work by
the drill and blast sub-contractor to Corica), are expected to
start providing access to higher-grade ore, crucial for achieving
commercial production. Over the weekend, drilling and
blasting restarted on an interim basis, with further blasts planned
over the coming weeks.
Recent completion of grade control ("GC")
drilling has highlighted a significant transition towards
high-grade material within the upcoming 15 meters, laying a strong
operational foundation for the next quarter once operations have
resumed. Figures 1, 2, and 3 below illustrate the increased
high-grade intercepts at the primary Koekoe deposit in
Kouroussa.
Figure
1: 345m RL GC Grade intercepts at the Koekoe
deposit, Kouroussa Gold Mine
Figure
2: 340m RL GC Grade intercepts at the Koekoe
deposit, Kouroussa Gold Mine
Figure
3: 335m RL GC Grade intercepts at the Koekoe
deposit, Kouroussa Gold Mine
**ENDS**
Notes to Editors:
Hummingbird Resources plc (AIM: HUM) is a
leading multi-asset, multi-jurisdiction gold producing Company,
member of the World Gold Council and founding member of
Single Mine Origin (www.singlemineorigin.com).
The Company currently has two core gold projects, the operational
Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea,
which will more than double current gold production once at
commercial production. Further, the Company has a controlling
interest in the Dugbe Gold Project in Liberia through its 53%
ownership of Pasofino Gold Limited. The final feasibility results
on Dugbe showcase 2.76Moz in Reserves and strong economics such as
a 3.5-year capex payback period once in production, and a 14-year
life of mine at a low AISC profile. Our vision is to continue to
grow our asset base, producing profitable ounces, while central to
all we do being our Environmental, Social & Governance ("ESG")
policies and practices.
For further information, please
visit hummingbirdresources.co.uk or
contact:
Daniel Betts,
CEO
Thomas Hill,
FD
Edward Montgomery,
CD
|
Hummingbird Resources
plc
|
Tel: +44 (0) 20 7409
6660
|
James
Spinney
Ritchie
Balmer
|
Strand Hanson
Limited
Nominated
Adviser
|
Tel: +44
(0) 20 7409 3494
|
James
Asensio
Ana
Ercegovic
|
Canaccord Genuity
Limited
Broker
|
Tel: +44 (0) 20 7523
8000
|
Bobby Morse
Oonagh
Reidy
George Pope
|
Buchanan
Financial
PR/IR
|
Tel: +44 (0) 20
7466 5000
Email: HUM@buchanan.uk.com
|