GCIHummingbird Resources’ Dugbe Gold Project underpinned by ‘a robust mineral deposit’
(HUM ) said a recently updated Mineral Resource Estimates (“MRE”) at the Dugbe Gold Project has shown that the project is underpinned by “a robust mineral deposit.”
The Canadian-based mineral exploration firm, Pasofino Gold, released the update for the Dugbe F and Tuzon deposits at the project in Liberia. Pasofino has an earn-in agreement for a 49% stake in the project, with Hummingbird maintaining a controlling interest of 51%.
Today, the company informed investors that using a 1.0 g/t of gold (Au) cut-off, the measured and indicated part of the MRE model boasts 2.88 million ounces (“Moz”) of gold contained in 56.6 million tonnes (“Mt”) grading 1.58 grams per tonne (“g/t”) of gold in two deposits.
In the Tuzon deposit, Pasofino recorded 40.2 Mt grading 1.64g/t Au containing 2.11 Moz gold and in the Dugbe F deposit it recorded 16.5Mt grading 1.45g/t Au containing 0.77 Moz gold.
Pasofino said this higher-grade material comprises the bulk of the MRE, and that the selective processing of it should benefit the project economics.
Reporting using the 0.5 g/t Au cut-off grade, which was used for the previous (August 2020) MRE showed an increase of 1.0 Moz gold in the Measured and Indicated category with the measured and Indicated tonnage now 75.2 Mt grading 1.37 g/t Au containing 3.31 Moz gold.
Using the lower ‘marginal’ cut-off grade (0.34 to 0.40 g/t Au), the Total Measured and Indicated Mineral Resource inside of the pit-shell is 81.2 Mt grading 1.30 g/t Au containing 3.40 Moz gold which has led to a Total MRE of 4.0 Moz, the company told shareholders.
Pasofino said there are “clear opportunities” to expand the MRE beyond the pit-shell, increase grade and make new discoveries highlighted by recent outcrop sampling returning up to 3 g/t on strike from Tuzon and the 100+ targets on the over 2,500 km2 land package in Liberia.
Using the latest upgrade, DRA Global will now progress with the mine design and Mineral Reserve Estimation for the Feasibility Study (“FS”), which is on schedule for completion by the end of 2Q22. It is expected to benefit from the robust and flexible MR, Pasofino noted.
Commenting on the upgrade, Dan Betts, CEO of Hummingbird Resources said: “Pasofino’s work to date demonstrates what we have always believed, which is Dugbe is underpinned by a robust mineral deposit. Of the total updated 4.0 Moz resource base, 3.4 Moz is in the Measured and Indicated category, which is a significant uplift on the previous MRE.”
He said the group is “increasingly confident that Dugbe has all the hallmarks of a robust, large scale mine and remain very enthused by the upside potential to expand the resource base. ”
He added, “We continue to see Dugbe as a very valuable asset within the Hummingbird portfolio which can help us to drive value for our shareholders as that value becomes more clearly articulated through the DFS work scheduled for completion in Q2 2022.”
Commenting on the updated MRE, Ian Stalker, CEO of Pasofino Gold, said there is “an opportunity to deliver higher grade ore to the plant and should have a knock-on benefit on operating costs and capex, potentially without detriment to planned annual production.”
He said there are “avenues for further resource expansion and grade increase” and that the company plans to take advantage of these as it works to finalize the FS in early 2022.
View from Vox
Last month, Hummingbird told investors that it had seen operational improvements in 3Q21, in particular the signing of a $100 million group financing facility from Coris Bank in October.
Over the period, the Company has focused on the development of its recently acquired Kouroussa Gold Mine in Guinea which is forecast to be a high-grade, low-cost mine.
The mine is expected to produce an average of between 120,000 and 140,000 ounces (“oz”) for the first three years of production and average 100,000 oz over the life of mine (“LOM”).
The mine is forecasted to be “a key contributor” in Guinea’s journey to becoming a leading gold producer in West Africa, following ongoing gold discoveries in the Siguiri Basin while at today’s gold price, the Company said the project also demonstrates ‘robust economics’.
The Company informed investors that the construction of the Kouroussa mine is now scheduled to start this quarter, with first gold pour scheduled for the end of Q2 2023.
At the Dugbe gold project, the Group’s earn-in partner, Pasofino Gold, released several drilling results during the quarter on the key Tuzon and Dugbe F deposits. Hummingbird said the results continue to highlight the significant gold endowment scale of the Dugbe project.
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