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MINING | Hummingbird Resources
HUMMINGBIRD RESOURCES
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Pouring first gold at Yanfolila
MINING | Hummingbird Resources
At the start of 2017, RGN spoke to Hummingbird Resources as the West Africa-focused gold miner began to accelerate its flagship low cost, high grade Yanfolila Gold Project in Mali. In little under a year, the AIM-listed outfit has accomplished a long list of undertakings that have taken the project off the ground, from construction and electrification of the plant, building the camp, commissioning of the mill, mobilisation of the mining fleet, local recruitment, training and much more. At the end of Q3, Hummingbird began mining operations at Yanfolila ahead of an anticipated first entry into production by year end. Managing director Daniel Betts talks RGN through Hummingbird’s busy year, explaining how he and his team have ensured the project will be delivered on time and on budget.
The team So often in these near-term developments it is the organisational strength of the managing team that dictates the overall strength of the project, and this notion was not lost on Betts when it came to assembling a senior management team.
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MINING | Hummingbird Resources
Resource Global Network “I think we have got the structure right in terms of Hummingbird having a VP for all the major disciplines be that the EPCM, the SHEC, operations, geology and some of those people have been with me for a long time,” says Betts. For example, VP SHEC (safety, health, environment, consultancy) David Hebditch has worked with Betts for several years prior to his arrival on the Yanfolila project, including on the Dugbe Gold Project in Liberia, Hummingbird’s other major gold development in West Africa. Another staunch member of the team is VP Operations William Cook who is responsible for the ongoing running and development of Hummingbird’s operational capability in Mali and Liberia, and has been with the company since the beginning. However, the company has also brought in fresh blood such as Murray Paterson, VP Geology, Wayne Galea, VP EPCM and Shaun Bunn, Senior VP Project Delivery, who have each made significant overseeing contributions to the overall ramp-up in activities at Yanfolila over the last year. The construction of a clearly-defined and compartmentalised management team has allowed the company to maintain a high degree of control over the many different elements of the project, meaning that no detail (however fine or glaring) has escaped the attentions of a Hummingbird supervisor.
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BRINGING MORE TO MINING
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This level of transparency in Hummingbird’s
Major milestone
work has taken on even greater importance
“AMS are very professional, they know exactly
in recent months with the entry of the
what they are doing and run lots of mining
contract mining team African Mining Services
operations in West Africa, but ultimately they
(AMS) on to the project.
are bringing in a $100 million mining fleet and it changes the dynamic of your team and
Overall, Betts believes the transition from
the way you operate as a company massively.
construction of the plant to mobilisation of
“
the mining fleet has been a smooth one,
“How we have integrated with AMS, managed
which is a testament to the disciplined
the contact with them and ultimately worked
overarching management structure already
together, is a major milestone for the
in place prior to the arrival of AMS.
company. We are currently getting through
“I GUESS THE PROOF IN THE PUDDING OF OUR WORK IS THE FACT THAT WE ARE GOING TO DELIVER ON TIME AND ON BUDGET AND THAT’S A PRETTY RARE FEAT SO I’VE GOT TO BE HAPPY” DAN BETTS, MANAGING DIRECTOR
MINING | Hummingbird Resources
the strip, have accessed ore and the ROM
so I’ve got to be happy.” After first pour in
pad has been completed.”
December, Yanfolila’s first year capacity will reach 132,000oz au, according to the project’s
Over three million tonnes of material was
2016 definitive feasibility study.
removed and transported during the initial process of top-fill strip mining to prepare the
The DFS was followed up by an optimised
open pit ahead of first pour in December,
new mine schedule outlining the financial
a target which was achieved on time to the
metrics of the project, which revealed a low
delight of Betts.
AISC of $695/oz and after-tax IRR of 60% at a $1,250 gold price. At this price Yanfolila will
“I guess the proof in the pudding of our work
generate over $70 million of free cash flow a
is the fact that we are going to deliver on time year. and on budget and that’s a pretty rare feat
Australian Resource Business Global Network
As if these encouraging returns weren’t
struggle to raise the capital to build that plant
satisfying enough for Hummingbird,
on its own.
Yanfolila’s production profile is set to be further boosted over the next decade by the
“But, based on the current metrics we think
recent deal struck with African Gold Group
we can beneficiate by concentrating that ore
for a conditional 50% interest in the nearby
at site before trucking it to our Yanfolila mine
Kobada Gold Project.
and running it through our CIL circuit, which would take a lot of the capital costs out of
The Kobada project has a measured,
building a standalone mine.
indicated and inferred gold resource of 2.2 million oz (Moz), including 511,000oz
“Effectively overnight we’ve got an additional
of reserves all within trucking distance
resource of 2.2 million ounces and we can
to Yanfolila’s processing plant, which
show the world that Yanfolila is not a short-
provides a tantalising scenario involving the
term project.
transportation of concentrate. “If we can get it to 10 years and 150,000oz a “I think it is one of those rare things in life
year by bleeding in a higher concentrate feed,
where it is a win-win,” proclaims Betts.
then we’ve got a very significant mine on our
“Kobada is a low grade deposit and would
hands.”
128
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TIMELAPSE VIDEO YANFOLILA GOLD MINE
Cora Gold
“We had a fantastic portfolio of exploration
Turning away from the Yanfolila project and
licenses but just didn’t have the bandwidth or
towards Hummingbird’s exploration activity,
the budget to explore and they’ve just been
the company struck a significant deal with
sitting there for the last 18 months,” explains
fellow junior Cora Gold, which also has a
Betts.
presence in the Yanfolila Gold Belt across
“
Mali and Senegal.
“The period of stagnation was frustrating as we like to work our ground hard and give
Ahead of Cora’s listing on the AIM,
ourselves a chance at making the next big
Hummingbird agreed to put some of its own
discovery.”
exploration targets into Cora’s portfolio in return for 33% of the company’s shares.
However, under a JV with Cora (a company
“FROM HUMMINGBIRD’S POINT OF VIEW THIS DEAL WITH CORA GOLD BECOMES AN ARMS-LENGTH EXPLORATION INCUBATOR FOR US AND I QUITE LIKE THE MODEL” DAN BETTS, MANAGING DIRECTOR
MINING | Hummingbird Resources
Resource Global Network
Betts has known for a long time) the
As Hummingbird enters into production at
company has been able to free up its
Yanfolila, maintains its position in Liberia at
exploration bandwidth and funding.
the Dugbe project and keeps its exploration
“From Hummingbird’s point of view this
targets open through the shared ownership
deal becomes an arms-length exploration
deal with Cora, Betts reflects on where he
incubator for us and I quite like the model to
wants to take the firm in the coming years.
be honest. “My vision is to build the most profitable, “It lets us focus on growing a mining
efficient gold company I can build and that
company, developing Yanfolila and Kobada
doesn’t need to be just in West Africa. This
but it also gives us access to exploration
is to be driven by the quality of the resource
which is where Hummingbird came from and
and any differentiators our team can bring to
is the bedrock of the industry. We certainly
the table to deliver those resources.”
want to be involved in exploration and I think this is a neat way to do this.”
b a r j
Published by Anderson Murray Media Ltd
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