REG - Hummingbird Res. - Yanfolila Mine Operational Update

Hummingbird ResourcesAnnouncement

15/12/2021 07:00

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RNS Number : 6446V  Hummingbird Resources PLC  15 December 2021

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

15 December 2021

Hummingbird Resources plc

("Hummingbird" or the "Company")

Yanfolila Mine Operational Update

Hummingbird Resources plc (AIM: HUM) provides an operational update on the
Yanfolila mine in Mali ("Yanfolila" or "the mine") following the Company's
release on 1 December 2021, notifying that the mine is back in operation.

Key updates:

·      As per the release dated 1 December 2021, mining and processing
operations have recommenced, having ceased operations for approximately six
days, with all employees and contractors safely accounted for

·      The Company is in the process of returning the mine operation to
a more normalised level of production, with further details on the current
work programmes provided below

·      As a precautionary measure, increased security, including the
presence of National Mali Government personnel, will remain in place as
Yanfolila ramps up production

·      Furthermore, in relation to the Company's mining contractor
excavator availability issues detailed in the Company's Q3 2021 Operational
and Trading Update, the Company notes that two of the larger excavators, of a
fleet of seven, that were unavailable for most of September, are back online.
However, the mining contractor's excavator fleet is failing to perform
consistently to the scheduled mining volume rates. Accordingly, the Company is
seeking to mitigate this risk with our mining contractor by:

o  Carrying out a detailed review of the overall contractor equipment
maintenance procedures and equipment status

o  Seeking to bring in additional excavators to increase availability,
optionality, and allow better maintenance of existing equipment. One
additional unit is expected to be delivered and operational before year end

·      As noted in the 29 November 2021 release, the Company advised
that the full year production forecast would be below the bottom end of the
2021 guidance range. Current gold poured for the year is currently over 82,000
ounces ("oz") (unaudited). Due to the above circumstances, the Company now
expects full year 2021 production of 84,000 to 89,000 oz at All in Sustaining
Cost ("AISC") range of US$1,490 to US$1,590 per ounce

·      The Company will provide a more detailed operational update post
year end, in the Q4 2021 and 2022 outlook statement, including convening a
call with investors, and which is scheduled to be released late January 2022

Anthony Köcken, COO of Hummingbird, commented:

"Though the disruption caused by a small minority has impacted our operations
at Yanfolila, our focus on protection protocols of our employees, contractors
and host communities has been effective. Hummingbird is working
collaboratively with our host communities seeking to ensure that such
disruptions do not happen again. The key focus for the Company at Yanfolila as
it moves into the year end is to continue to run the operations safely for the
benefit of all stakeholders, executing efficiently on the current mine plans
and providing the platform for a more sustainable operational performance in
2022 and beyond."

Dan Betts, CEO of Hummingbird, commented:

"Despite the challenges at Yanfolila during the quarter, the Company is
installing mitigating measures to ensure a more sustainable production profile
at the mine. We are currently finalising our 2022 budgeting programmes with a
focus on providing increased production flexibility at Yanfolila, with the
goal being to improve free-cash flow generation from the mine and continuing
with the Company's overall growth plans.

We are cognisant of providing investors with more details, and once the year
is complete, we will be providing the opportunity for a Q&A session with
senior management post the release of the Company's Q4 2021 and 2022 outlook
statement, scheduled for late January 2022."

Security presence

Increased security and the presence of National Mali Government personnel has
led to an overall slowing of the movement of people and equipment as these
security measures remain in place. As a precautionary security measure, when
operations restarted, mining could not run on a 24-hour basis as is normal.
However, we note operations are now running on 24-hour a basis, albeit
currently at slower rates as operations continue to ramp up.

Restarting Operations

As noted above, the Company is currently in the process of returning of
Yanfolila to more normalised levels of production. Work is ongoing and further
details of completed workflows are provided below;

·      The Company has completed the dewatering of the key operating
pits, Komana East and Komana West, which saw water ingress into these pits due
to the equipment being unable to be manned and maintained during the unrest
period. This initially impacted the ability to operate as planned however,
both pits are now back in operation

·      The ramping up of the processing plant since recommencing
operations has been gradual, in line with the availability of ore supply from
operating pits as they recover to more normal levels

·      The Company has restored Yanfolila's regular gold pours which
were temporarily ceased during the unrest

·      Supply chain checks have been finalised. The Company reports
minimal ongoing impacts on crucial supply chain requirements, including fuel;
food; reagents and critical spares

·      A full review of plant and equipment has been implemented with
limited damage reported and all required repairs completed

**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).
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 central to all we do being our
Environmental, Social & Governance ('ESG') policies and practices.

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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