REG - Hummingbird Res. - Update on Mining Operations at Kouroussa

Hummingbird ResourcesAnnouncement

18/03/2024 09:45

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RNS Number : 2256H  Hummingbird Resources PLC  18 March 2024

 

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

 

18 March 2024

Hummingbird Resources plc

("Hummingbird", the "Group", or the "Company")

Update on Mining Operations at Kouroussa

Hummingbird (AIM: HUM) provides an update on operations at the Kouroussa Gold
Mine in Guinea ("Kouroussa").

 

Kouroussa's principal contract miner, Corica Mining Services ("Corica"), has
temporarily suspended mining operations as of 17 March 2024 as a result of
various contractual disputes. Such suspension is a clear breach of the mining
contract. As previously announced, since the commencement of the contract,
Corica has failed to meet mining contract volumes due to delays in mining
equipment mobilisation, commissioning, and overall operating performance.

 

With the processing plant operating consistently at name plate capacity, and
higher-grade ore scheduled to be accessed from the next blast, the Company is
well positioned to reach commercial production levels once full mining is
achieved.

Hummingbird is working to reach full mining capacity, while continuing to
process both low-grade stockpiles and ore being mined separately by a
supporting mining contractor which was appointed in H2-2023 to support
Corica's mining activities. The supporting mining contractor has one fleet on
site to support the contracted four fleets from Corica.

The processing plant is expected to continue to run in the near term, however
until increased mining capacity is available, reaching commercial production
will not be possible, with production and cash flows increasingly impacted.

Notice has been given to Corica to return to work by Tuesday 19 March 2024,
failing which the Company will exercise its rights which could include,
stepping in to resume mining, and working with alternative mining contractors
and equipment suppliers to achieve full mining operations.

The Company is in discussion with its primary lender, Coris Bank International
("Coris"), regarding the potential implications of the situation on forecast
production and the cash flows for the Group.

Coris has been the Company's main financing partner since it financed the
construction of the Yanfolila Gold Mine in Mali in 2017 and have been very
supportive of the Company's growth strategy throughout.

The Company will provide a further update as and when appropriate.

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing 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
once at commercial production. Further, the Company has a 51% controlling
interest in the Dugbe Gold Project in Liberia that is being developed by
joint venture partners, Pasofino Gold Limited. The final feasibility results
on Dugbe demonstrate 2.76Moz in Reserves and strong economics such as a
3.5-year capex payback period once in production, and a 14-year life of mine
at a low AISC profile. The Company's vision is to continue to grow our asset
base, producing profitable ounces, while adhering to the highest international
standards of Environmental, Social & Governance ("ESG") policies and
practices.

 

For further information, please visit 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                                    IR@hummingbirdresources.co.uk (mailto:IR@hummingbirdresources.co.uk)

 Edward Montgomery, CD
 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

 Anna Ercegovic          Broker
 Bobby Morse             Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy            Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

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