REG - Hummingbird Res. - Kouroussa Gold Mine Update

Hummingbird ResourcesAnnouncement

16/12/2021 07:00

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RNS Number : 8192V  Hummingbird Resources PLC  16 December 2021

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

16 December 2021

Hummingbird Resources plc

('Hummingbird' or the 'Company')

Kouroussa Gold Mine Update

Development Update & Significant Infill Drilling Results Received

Hummingbird Resources plc (AIM: HUM) provides an update on the Company's mine
development progress and results from the second assay batch of the 2021
Resources and Reserves infill drilling programme, including a metallurgical
hole of 55 metres ("m") at 35.72 grams a ton ("g/t") from 77m, at the
Kouroussa Gold Mine ("Kouroussa" or "the Project") in Guinea. For the full
release, including graphics, please follow the
link here http://www.rns-pdf.londonstockexchange.com/rns/8192V_1-2021-12-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8192V_1-2021-12-15.pdf) .

Kouroussa Development Update:

Mobilisation of equipment and personnel has begun to enable construction to
commence in early January 2022 by the Projects' construction and engineering
firm WACOM, inline with the Project schedule and targeted first gold pour by
the end of Q2 2023, as detailed below.

Key highlights include:

§ Essential construction equipment and personnel have begun to arrive on site
to enable construction to officially commence in early January 2022 and
delivery of first gold pour by the end of Q2 2023, along with the ordering of
long-lead items

§ Detailed engineering on structural, mechanical, and electrical requirements
has commenced

§ Tenders for other key contracts are at advanced and final stages: mining;
power; fuel supply and other key related infrastructure

§ The finalisation of the Projects carbon emission reduction strategies,
along with awarding of the power contract, which is expected to include a
significant solar component and other technologies aimed at reducing emissions
significantly

§ Initial advance of c.US$40 million from Coris Bank International ("Coris
Bank") as part of US$100 million funding package, to enable construction to
commence.  See release dated 12 October 2021 for full details of the Company
finance facility and Project specifics: link
(https://polaris.brighterir.com/public/hummingbird/news/rns/story/xz9lopr)

Kouroussa Drilling Highlights:

Hummingbird has received the second assay batch of results on 40 Reverse
Circulation ("RC") and seven diamond holes on the high-grade KoeKoe ("KK")
deposit, delivering approximately 4,562m out of the Company's c.24,000 m
infill drilling programme for 2021.

Notable drill results from the KK deposit include:

§ 55m at 35.72 g/t from 77m (KRCD1729A)

§ Including an interval zone of 20.75m at 91.98 g/t

§ 5.9m at 12.72 g/t from 94m (KRCD1880)

§ 10.2m at 5.68 g/t from 34m (KRCD1884)

§ 9.8m at 5.82 g/t from 3m (KRC1821)

§ 49m at 5.50 g/t from 70m (KRC1866)

§ 10m at 4.76 g/t from 140m (KRCD1878)

§ 6m at 4.91 g/t from 29m (KRCD1880)

§ Drill hole KRCD1729A, a metallurgical hole drilled to collect sample
material for metallurgical test work, intersected a significant high-grade
mineralisation interval of 55m at 35.72 g/t (from 77m), including an internal
zone of 20.75m at 91.98 g/t

o  The hole exceeded expectations in terms of grade and confirms the
interpretation of the current Mineral Resources Estimate ("MRE") and potential
for further resource growth

§ The above results continue to demonstrate the high-grade nature of the KK
deposit at relatively shallow depths - as also highlighted in the recent
Kouroussa drilling release on the 22 October 2021: link
(https://polaris.brighterir.com/public/hummingbird/news/rns/story/w3z76yr)
. The c.24,000m 2021 Kouroussa infill drilling programme is nearing
completion, with less than 1,500m drilling to be completed in December. This
year's drilling programme will feed into the Company's updated 2022 Resources
and Reserves statements scheduled for release in Q2 2022

§ Lastly, the Company notes further assays have been recently received from
the 2021 Kouroussa infill drilling campaign and will be reported once fully
reviewed in the new year

Dan Betts, CEO of Hummingbird Resources, commented:

"The mobilisation of equipment and personnel at Kouroussa marks another
important step towards the Company's strategic goal of being a multi asset
producer.  A material amount of work has been done, assembling the team and
infrastructure, so that construction can commence, and that capex budgets and
timelines are delivered.

Further, the ongoing exceptional drilling results being received at Kouroussa
highlight we have an asset of significant value, with a material amount of
exploration potential ahead of us."

Noris Del Bel Belluz, Group Technical Services Manager of Hummingbird
Resources, commented:

"The assays results received so far from the Inferred to Indicated drilling
campaign, and the historical drilling results pre-2021, clearly demonstrate
that the Koekoe deposit - and Kouroussa in general - host impressive gold
grades.  We are now finalising plans for our 2022 Kouroussa exploration
drilling campaign to build upon the success being seen in 2021. We expect to
continue to see the upgrading of the quality of the reserves/resources to
further extend the current mine life at Kouroussa."

Kouroussa Gold Mine highlights

Kouroussa is forecast to be a high-grade, low-cost mine that will produce
between 120,000 and 140,000 ounces ("oz") for the first three years of
production, and an average 100,000 oz over the initial seven-year life of mine
("LOM"), with upside potential with further exploration. The project has
industry-leading economics at a gold price of US$1,750 per oz*, including

·      IRR 71%

·      NPV US$210 million

·      Cumulative free cash of US$314 million

·      All-In Sustaining Cost ("AISC") in the range of US$900-US$1,000
per oz throughout the LOM

·      Project capex total estimate of US$115 million

With the mobilisation of equipment and personnel on site the Company remains
on track for first gold pour by the end of Q2 2023.

Notes from the highlights: * Project NPV's are based on a 10% discount rate
and both the NPV and IRRs are post tax.

WACOM

The Company has formally appointed WACOM to perform the civil and structural
design of the process plant, along with the plant fabrication and
construction.  WACOM is a group of companies specialising in the construction
of mining and industrial infrastructure in the West African region.  WACOM
have a large fabrication and machining workshop in Bamako, Mali where most of
the structural steel, plate work and tanks will be fabricated and transported
by road to Kouroussa. This will ensure both low cost and timely sequenced
arrival of fabricated components for plant construction WACOM has successfully
built a number of mines, including Yanfolila (when formally known as IMAGRI),
which was on time and on budget. (See release dated 12 October 2021 for
further details: link
(https://polaris.brighterir.com/public/hummingbird/news/rns/story/xz9lopr) )

The WACOM contract is a lump sum fixed price, with penalties for late
delivery.  Additionally, to help ensure the Project is delivered on time, the
Company has agreed an incentive package consisting of a potential bonus of up
to US$2.6 million, consisting of a cash bonus of up to US$0.75 million with
the balance of up to US$1.85 million (£1,395,000) payable through the issue
of 6,342,857 new shares in Hummingbird Resources Plc at the agreed price of
£0.22 per share, to be issued 12 months after expected delivery date (i.e.,
in 1H 2024).

Koekoe deposit section view - Hole KRCD1729A

 

Koekoe selected drill results

 Hole ID    Depth From (m)  Depth To (m)  Intercept Description
 KRC1784    16              23            7m @ 2.67 g/t
 KRC1786    91              93            2m @ 23.34 g/t
 KRC1787    8               13            5m @ 1.17 g/t
 KRC1789    45              63            18m @ 2.33 g/t
 KRC1803    0               32            32m @ 1.11 g/t
 KRC1810    31              46            15m @ 3.88 g/t
 KRC1815    40              41            1m @ 4.52 g/t
 KRC1815    56              57            1m @ 6.38 g/t
 KRC1816    30              34            4m @ 4.52 g/t
 KRC1821    3               12            9m @ 5.82 g/t
 KRC1862    96              99            3m @ 10.96 g/t
 KRC1866    27              45            18m @ 1.29 g/t
 KRC1866    70              119           49m @ 5.50 g/t
 KRC1866    126             129           3m @ 4.48 g/t
 KRC1867    73              76            3m @ 5.36 g/t
 KRC1870    88              111           23m @ 1.59 g/t
 KRC1877    90              98            8m @ 1.39 g/t
 KRC1877    114             117           3m @ 41.32 g/t
 KRCD1728   56              61            5m @ 2.39 g/t
 KRCD1728   125             147           22m @ 3.74 g/t
 KRCD1729A  77              132           55m @ 35.72 g/t
 KRCD1878   140             150           10m @ 4.76 g/t
 KRCD1880   29              35            6m @ 4.91 g/t
 KRCD1880   72              75.8          3.8m @ 3.67 g/t
 KRCD1880   94.1            100           5.9m @ 12.72 g/t
 KRCD1880   162             166           4m @ 2.26 g/t
 KRCD1883   15              42.5          27.5m @ 3.02 g/t
 KRCD1883   57.25           59.5          2.25m @ 3.45 g/t
 KRCD1883   143.35          153.1         9.75m @ 5.86 g/t
 KRCD1884   12.9            26            13.1m @ 4.58 g/t
 KRCD1884   34              44.2          10.2m @ 5.68 g/t

 

 

Koekoe deposit - Historical drilling & 2021 infill drilling plan

 

Qualified Person Review:

David Muir, has reviewed and approved the technical information contained
within this announcement in his capacity as a Qualified Person, as required
under the AIM Rules for Companies. David is the Group Database Manager for
Hummingbird, and is a "Competent Person", according to the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves
("JORC Code, 2012 Edition") and is a member of good standing with the
Australian Institute of Geoscientists (AIG).

**ENDS**

Notes to Editors:

Hummingbird Resources (AIM: HUM) is a multi-asset, multi-jurisdiction gold
production, development and exploration Company, member of the World Gold
Council and founding member of Single Mine Origin (www.singlemineorigin.com
(http://www.singlemineorigin.com/) ). The Company currently has two core gold
projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa
Gold Mine in Guinea, which will more than double current gold production
when in production, scheduled for first gold pour end of Q2 2023. Further, the
Company has a controlling interest in the Dugbe Gold
Project in Liberia that is being developed by Pasofino Gold Limited through
an earn-in agreement. Our vision is to continue to grow our asset base,
producing profitable ounces, while placing our Environmental, Social &
Governance ('ESG') policies and practices at the heart of all we do.

For further information please visit https://www.hummingbirdresources.co.uk/
(https://www.hummingbirdresources.co.uk/)  or contact:

 Daniel Betts, CEO                  Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Anthony Köcken, COO

 Edward Montgomery, CSO & ESG
 James Spinney                      Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer                     Nominated Adviser

 James Asensio                      Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Thomas Diehl                       Broker
 Bobby Morse                        Buchanan                   Tel:  +44 (0) 20 7466 5000

 Ariadna Peretz                     Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 James Husband

 

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