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
The Yanfolila gold mine produced 23 807 oz of gold in the first quarter of this year, up 33% from the 17 895 oz produced in the fourth quarter of 2018.

Mining rates were, however, lower than expected.

"In the period, production was impacted on by ore depletion from the Komana West pit from historical artisanal workings, which was greater than forecast in the reserve model. We are taking immediate steps to reverse the impact of this dilution through working closely with the mine contractor and, as we progress deeper in the pits, the impact of this is expected to reduce significantly in the near term as we access areas of expected higher-grade ore," CEO Dan Betts has said.

Despite the lower-than-expected first-quarter output, Hummingbird is confident that the mine will meet its full-year production guidance of 110 000 oz to 125 000 oz.

Meanwhile, Betts has said the company is looking forward to receiving an updated reserve/resources report in the second quarter, which will enable it to publish a new life-of-mine plan for Yanfolila. 

"It is also pleasing to note the strong progress we have made on the second ball mill project and we look forward to the positive impact that will bring to our process plant capacity once completed," Betts has said.

The construction of a second ball mill at the mine is on track for completion in the third quarter of this year.

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.