Appointment of Civil Contractor

RNS Number : 4606J

Hummingbird Resources PLC

12 September 2016

 

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

12 September 2016

Hummingbird Resources plc ("Hummingbird Resources" or "the Company")

Appointment of Civil Contractor

Hummingbird Resources (AIM: HUM) is pleased to announce an update on progress at its 2.2Moz Yanfolila Gold Project in Mali ("Yanfolila").

Highlights:

·     Appointment of  IMAGRI-SARL ("IMAGRI" or "the Contractor") as civil works contractor

o  IMAGRI is a leading specialist of building, mining and industrial infrastructure in Mali

·    IMAGRI is responsible for the completion of plant civil works, which includes:

o ROM tip and primary crusher

o Secondary crusher and screen

o Milling and Carbon in Leach (CIL) area

·     Mobilisation to site will continue throughout September 2016

·     Work targeted to commence at the start of October 2016

·     Yanfolila project development advances on-schedule and on-budget

Dan Betts, CEO of Hummingbird Resources, said: "Development at Yanfolila continues on-schedule and budget, as we target initial production of 130,000oz gold from the first full year of production.  The appointment of the civil contractor and mobilisation of equipment is a pivotal undertaking in the project's evolution into a producing mine. IMAGRI's local experience, which includes working for Randgold in Mali, will be invaluable as we advance Yanfolila.

"I look forward to reporting on additional progress over the coming months as Hummingbird gets closer to delivering one of Africa's newest and highest margin gold mines, generating in excess of US$70 million free cash flow in its first full year of production at current gold prices."

Mathias Thibieroz, CEO of IMAGRI, said: "I am delighted that IMAGRI has been selected as contractor, leading the construction of the civil works for the Yanfolila Gold Project.  We are pleased to have been given the opportunity to demonstrate our efficiency and performance on this highly prospective site and look forward to working with Hummingbird and SENET over the coming months."

Further Information

The contract signed with IMAGRI entails the construction of the proposed plant civil works for the Company's 2.2Moz Yanfolila Gold Project in Mali, situated in the Yanfolila Belt on the eastern edge of the Siguiri Basin, Mali ("the Contract").  The execution of the works shall be in accordance with the scope, description, drawings, specifications, delivery dates and the terms and conditions set out by SENET (Pty) Ltd ("SENET"), which was awarded the Engineering, Procurement and Construction Management contract by Hummingbird in July 2016.

The Contractor will assume responsibility for the construction of the facilities, in accordance with the specifications set out by SENET.

The civil works comprise all aspects of constructing steel reinforced concrete structures including amongst others equipment bases, plinths, strip and raft foundations, surface beds and bunded areas.  Ancillary works such as water supply, sewage systems and building works will also form part of the IMAGRI scope of works.  The Contract includes all of the following areas: plant wide pipe racks; conveyor trestle foundations; motor control centres; ROM tip and primary crusher; secondary crusher and screen; milling; gravity and intensive cyanidation; Carbon in Leach area; carbon safety and detoxification; elution and other ancillary services.

About IMAGRI

IMAGRI is an established specialist in the construction of world class mines in Mali.  It was instrumental in the construction and expansion of Randgold Resources' flagship Loulo underground mine powerplant and the associated Gounkoto open pit mine. 

IMAGRI experience also includes work at Robex Resources' Nampala Gold Mine (as general contractor), Toguna Agro-Industries' phosphate mine, the Elephant Vert's fertiliser plant as well as a portion of ASX-listed Resolute Mining's Syama Mine.

About Yanfolila

Yanfolila is the Company's most advanced asset, which boasts impressive economics and production fundamentals.  132,000oz gold is targeted for its first full year of production, which would deliver around US$70 million of free cash flow at a US$1,250/oz gold price.  On its initial eight year mine life, Yanfolila has an IRR of 60% and an NPV of US$162 million at US$1,250 gold price, making it one of the highest margin undeveloped gold projects in Africa.  All in sustaining costs of US$695 per ounce places it in the lowest quartile of African producers. 

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

**ENDS**

For further information please visit www.hummingbirdresources.co.uk or contact: 

Daniel Betts Thomas Hill Robert Monro	Hummingbird Resources plc	Tel: [phone]
Charlie Cryer Oliver Morse	RFC Ambrian Ltd Nominated Adviser and Joint Broker	Tel: [phone]
Jon Belliss	Beaufort Securities Limited Joint Broker	Tel: [phone]
Lottie Brocklehurst Susie Geliher	St Brides Partners Ltd Financial PR/IR	Tel: [phone]

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company.  The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe Gold Project in Liberia.  It is currently building Yanfolila targeting first production by end of 2017, which has a Probable Reserve of 709,800oz @ 3.14g/t and total Resources of 1.8Moz of gold and an additional 390,700oz of non-compliant exploration potential.  The high grade gold project has low operating costs of US$695/oz AISC with 132,000ozs of first full year's production. 

The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird with excellent development upside.  An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term.  Additionally, the Company has 4,000km² highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

 

END

 

 

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