Full Scale Mine Construction Has Now Commencedhttps://www.lse.co.uk/share-regulatory-news.asp?shareprice=HUM&ArticleCode=4se6orxj&ArticleHeadline=Commences_Construction_at_Yanfolila_Gold_Project
Tue, 11th Oct 2016 07:00
RNS Number : 1664M
Hummingbird Resources PLC
11 October 2016
Ticker: HUM / Index: AIM / Sector: Mining
Hummingbird Resources plc ("Hummingbird Resources" or "the Company")
Commences Construction at Yanfolila Gold Project
Hummingbird Resources (AIM: HUM), the West African gold company, is pleased to announce that following the recent appointment of IMAGRI-SARL, civil works have now commenced at the Company's Yanfolila Gold Project in Mali ("Yanfolila").
To view recent photographs of the Yanfolila site, please see the associated PDF.
https://www.rns-pdf.londonstockexchange.com/rns/1664M_-2016-10-10.pdf
Highlights:
· IMAGRI-SARL commenced civil works at Yanfolila
· Surveying, setting out and trenching have started on site in preparation for concrete pouring later this month
· On schedule and budget for first gold pour by end of 2017
Dan Betts, CEO of Hummingbird Resources, said: "We are now laying the ground work for our first gold mine in Mali with civil works having started. This is an important milestone for Hummingbird Resources as full scale mine construction has now commenced, and we are on schedule for our first gold pour by the end of 2017 targeting 132,000oz in the first year."
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 in that year 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 cash costs of US$695 per ounce places it in the lowest quartile of African producers.
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.
Pictures - See PDF