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Hummingbird update on PFS for Liberia plant

By BFN News | 08:48 AM | Wednesday 31 August, 2016

Hummingbird Resources has announced the final results of a 14 month hydro-electric power pre-feasibility study in the proximity of its 4.2Moz Dugbe gold project. The PFS, which was funded by IFC InfraVentures and carried out by Knight Piļæ½sold, confirms the potential viability of a range of options for HEP plants with the ability to supply a sustainable source of power for Dugbe, as well as the southeast Liberian region. Importantly, the HEP plant also offers the potential to reduce the all in sustaining costs of the Dugbe gold project. Highlights: - Five alternative solutions from 10-30MW of hydro-electric power - Capex ranges from US$51.5-143.5m dependent on size of option selected - Offers a hydro-electric power solution for the Dugbe Gold Project, with potentially materially positive cost and environmental benefits Chief executive Dan Betts said: "As the largest gold deposit in Liberia, with a US$186m NPV at a US$1,300 gold price, we are obviously keen to move the Project forward towards development and the delivery of the hydro power PFS is a tangible deliverable in this process. "The PFS, which has been fully funded by IFC InfraVentures, has assessed the various options for a hydro-electric power plant 10km from our Dugbe Gold Project, which could provide significant savings to our overall power cost for Dugbe, but also has the potential to provide surplus power to the local region. "Power costs make up over a third of our total process Opex at Dugbe and finding savings in this area will have positive implications to the Project's economics. We had been using an estimate of US$0.28c/kW for rented diesel power in the PFS. "Taking the total Capex and Opex for the HEP plant, over the current 20 year mine life, gives you a theoretical cost of US$0.05c/kWh. This number does not compare directly, since it does not include the impact of the financing cost of building the hydro plant as it is not yet known how this will be done or by whom. "However, assuming a suitable financing solution was found, this could have a materially positive impact on the economics of the Dugbe Gold Project. Therefore, we are now considering our next steps with our partners on the PFS." At 8:48am: (LON:HUM) Hummingbird Resources share price was 0p at 24p Story provided by

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