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HUMMIN RESOU
Hummingbird emerges from a challenging perio
MINING | HUMMINGBIRD RESOURCES
NGBIRD URCES
od with an organic growth pipeline in West Africa
“Despite the headline numbers of a lower production than we would’ve liked, I actually think Yanfolila’s come a long way in terms of us overcoming operational challenges and setting up the mine for a better place in the future,” Hummingbird Resources CEO Dan Betts tells RGN after an unpredictably challenging 2020, not just for the West Africa-based gold producer but for all companies around the world. Having said that, logistical issues across Africa heightened by the COVID-19 pandemic were felt acutely by Hummingbird (particularly in the second quarter of 2020), on top of the impact of the worldwide public health crisis. Hummingbird also watched a military coup unfold in Mali – the host country of its flagship Yanfolila Gold Project. Thankfully, the political transition brought no disruption to Yanfolila’s gold output, but it served as a reminder of the jurisdictional risk involved with operating in Africa. But, it was the border closure issues associated with COVID-19 that were more detrimental to Hummingbird’s production profile last year (2020 output totalled 101,069 ounces of gold, compared to the forecasted 110-125,000 ounces at the start of the year), with various supply chain holdups necessitating changes to the mine plan at Yanfolila. YANFOLILA MINE CAMP, MALI
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In spite of all these impediments to growth last year, long-term CEO Betts points to significant developments made by the company outside of the Yanfolila mine, namely the acquisition of the Kouroussa Gold Project in Guinea from junior explorer Cassidy Gold Corp in June 2020, and the advancement of the Dugbe Gold Project in Liberia, following an earn-in arrangement with TSXV-listed Pasofino Gold. “Those developments, coupled with the aggressive exploration we completed at Yanfolila to extend the mine life and move it towards underground mining, demonstrate that there are a lot of exciting things happening, and a lot of growth and value to be unlocked from here,” he says.
Extending Yanfolila At the end of March 2021, Hummingbird announced the ARIAL SHOTS OF DUGBE CAMP IN LIBERIA
discovery of new resources at
YANFOLILA EXPLORATION
Yanfolila following exploration
which haven’t been mined yet
“The Sanioumale East deposit
drilling work in 2020, which
called Sanioumale East and
is now over 200,000 ounces
was the first year that the
Sanioumale West.
and open in every direction
company had committed
with some really stunning
to a sustained exploration
At Sanioumale West, the infill
intersections. We’re drilling
campaign at the mine.
drilling added 26,200 ounces
there now aggressively, and I
of gold to the total mineral
think that could prove to be a
The US$5 million drill
resource estimate of 164,200
very exciting source of future
campaign focused on three
ounces, a moderate increase
feed for the mine.”
main targets: Resource growth
by all accounts. However, the
at the underground section
big upside came at Sanioumale
Meanwhile, the Komana East
of Komana East – which has
East, where over 150,000
Underground development is
provided the main open pits
ounces were discovered during
being dubbed as the long-term
for the mine to date – and
the drill programme.
future mine life of Yanfolila,
two deposits further North
after the drilling provided
MINING | HUMMINGBIRD RESOURCES
Hummingbird is to finalise the mining licence with the government before it can start in earnest on the ground. Having said that, the firm has started detailed FEED and trade-off studies for the flowsheet modelling of the proposed operation. “All that detailed work is being locked down as we speak: the footprint for the mine, the land acquisition plans, social engagement projects and the exploration. For me, exploration is most important because this project has evidence that the main pit
“When you get into
stunning grades and I think
remains open at depth.
underground mining, you’re
we can build a relatively cheap
Hummingbird is currently
not going to have a 10-year
and effective plant based on
working through all economic
mine life, you’re going to prove
our experience at Yanfolila.”
valuations and optimisation
it up as you go. But I think
studies for the underground
these orebodies should go
Kouroussa and Yanfolila
operation.
on and on and sustain a base
share several similarities in
load feed for the mill for many
terms of the scale of both
years to come.”
projects, the metallurgical
“As the Komana East pit gets deeper, narrower and the strip increasingly certain that the
Preparing Kouroussa
continued orebodies will
Shifting over to Guinea
sustain underground mining,”
and the Kouroussa project,
Betts says. “So it’s now about
the immediate priority for
ratio goes up, it’s becoming
optimising how we do that.
flowsheets and process plant design, while Hummingbird can extract synergies in maintenance services and
product component supply given that Guinea and Mali share a malleable trading border. Exploration planning has also commenced on several high priority targets at Kouroussa in order to increase the current resource base of 1.18 million ounces at over 3 g/t. “If we start the exploration now and build on that story as we’re developing the project to extend the mine life, all we’re really doing is creating value,” Betts reiterates.
H UM M I N GBI RD RES O U R C ES AT A G L A N C E
STOCK TICKER: AIM:HUM MARKET CAPITALISATION: £77 million (as of April 01, 2021) aj
DUGBE CAMP, LIBERIA
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Partnering with Pasofino Over at the Dugbe Gold Project in Liberia – Hummingbird’s original West African asset – Betts is suitably impressed with the work being completed by partner Pasofino Gold, who acquired Hummingbird’s former partner, ARX Resources, on the project in September 2020. Pasofino agreed to continue the terms of the existing earnin agreement, which will see the company undertake a mutually agreed exploration programme at Dugbe and complete a definitive feasibility study for a 49% interest in the project, with Hummingbird maintaining the 51% controlling stake. During the first six months of the partnership, Pasofino has
ALTUS S
focused on organising logistics around the Dugbe project in order to get exploration up and running. This has involved rebuilding roads, bridges and the mining camps.
“The Dugbe project is in a remote area of Eastern Liberia, albeit very close to a port as the crow flies. That logistical work has been completed and they’ve now got four rigs at site and are motoring away with exploration work and getting good results which are starting to come out to the market. “I think everyone wrote Dugbe off, and it’s obviously got a place in our heart given that is where we started. The guys at Pasofino are very professional, competent and
“The plan was always to find a gold project, build a gold project and use the cash flow from the gold project to build a gold company. It’s never a straight road, there’s always going to be hiccups and we’ve got the scars to prove it now” – Dan Betts, Hummingbird Resources CEO
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across the Yanfolila site, which involved the rehabilitation of over 8,000 trees. However, Betts believes the biggest success story in the community is the market gardens project. “We have overseen the employment of over 800 women in self-sustaining work at these market gardens where they are selling produce to us and into the communities. These individuals now see this as a way of earning a livelihood that can endure long after the mine is finished.”
DAN BETTS, HUMMINGBIRD RESOURCES CEO
Betts is also keen to highlight Hummingbird’s pioneering
have a great track record of
centres on the altruistic work
Single Mine Origin (SMO) gold
building value in assets, either
it accomplishes in the local
initiative. SMO provides a way
through developing or selling
environment and communities
of tracing gold from source
them. I think there’s a real
in the Sikasso region where
at a responsible mine that
opportunity for Hummingbird
Yanfolila is located. In 2020,
complies with international
shareholders to attain some
the company threw itself
best practice principles – such
value here that’s not seen in
into COVID-related relief and
as the World Gold Council’s
the share price.”
assistance measures while
RGMPs or IFC Performance
maintaining its regular ESG-
Standards – all the way
focused work programmes.
through to refinery and the
ESG excellence Another source of constant pride at Hummingbird
manufacturing process into Hummingbird commenced a new tree planting initiative
the jewellery industry.
HUMMINGBIRD RESOURCES MARKET GARDENS INITIATIVE IN MALI
He explains how the consumer
because the sector is awesome
where the mine is. I
of SMO-certified gold will be
in the ESG work it does in
fundamentally believe mining
able to scan a QR code on the
remote communities, yet often
can do that in a way no other
product which details the exact
hides its credentials under a
industry can. Hopefully with
journey the gold has taken
bushel because people like to
SMO gold we can showcase
from the Yanfolila mine all the
slam mining.
that to the retail world and
way to their finger, in the case of a ring.
it then becomes a retail-led “Mining is not sustainable, you dig a resource out the
initiative.”
“If we can help roll that out,
ground and it’s gone, but it’s
Bright horizons
I think it can help promote
how you do this in a way that
Despite seeing a weaker gold
the whole mining industry,
improves the livelihoods of the
price so far in 2021, and hence
communities and environment
MINING | HUMMINGBIRD RESOURCES
DAN BETTS WITH MARKET GARDENERS IN MALI
a lower share price in line with
straight road, there’s always
Strategically, Hummingbird
the market correction, Betts
going to be hiccups and we’ve
has never been in a better
has plenty of reasons to be
got the scars to prove it now.
place, Betts proclaims. The
optimistic given Hummingbird
company will pay off all
is on track with regards to
“But I think we are getting
outstanding debt later this year
building a multi-asset gold
better and better and that gives
and it has made exploration
company in West Africa.
us the platform to grow. We’ve
progress at Yanfolila, while
got the second project and an
making solid advances at its
“The plan was always to find
organic growth pipeline in the
other gold projects in Guinea
a gold project, build a gold
region, which has tremendous
and Liberia.
project and use the cash flow
opportunities; lots of gold, lots
from the gold project to build
of discoveries.”
a gold company. It’s never a
Published by Anderson Murray Media Ltd
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