Hummingbird Resources says feasibility study at Dugbe Gold Project is ‘encouraging’
(HUM ) noted that “positive developments” are being made from an ongoing feasibility study being undertaken on the Dugbe Gold Project by DRA Global, a group of independent consultants that were appointed by Pasofino to complete the study in Liberia.
The Canadian-based mineral exploration firm, Pasofino Gold, said the feasibility study is now scheduled to complete in April 2022 adding that, at that time, the Company will, subject to satisfying certain other conditions in the earn-in agreement, earn a 49% interest in the project.
Pasofino said ‘confidence’ has now been achieved with the results of the study confirming gold recoveries between 85% and 91%, depending on whether a straight CIL or CIL with flotation circuit is selected, respectively.
The company also highlighted that current trade-offs are aimed at selection of the optimal process in order to achieve the best financial outcomes.
The study at the project demonstrated that open pittable resources include 57-million-tonne (“Mt”) material, grading 1.58 grams a tonne (“g/t”) with 2.88 million ounces (“Moz”) gold.
Pasofino intends to prioritise the extraction of this higher-grade component of the resource (75Mt at 1.37g/t in measured and indicated) to support a higher head grade during production.
Hummingbird noted that these ‘favourable’ results from the on-site geotechnical work should allow steeper pit slopes to be developed, which should translate to lower strip ratios in turn.
While mining dilution has decreased to an average of 8.7% from 10% in the 2021 Preliminary Economic
Assessment, energy costs reduced from $0.212 per kWh to $0.172 per kWh. The company said this anticipated benefit is expected to result in lower energy cost/tonne treated.
It added that other disciplines are well advanced with the study now over 70% complete.
The company stated that yesterday’s updated results show the continual strong progress towards delivering an economically robust FS, as highlighted by the PEA back in June 2021.
Hummingbird notes that post completion of the feasibility study in April 2022 and, subject to satisfying certain conditions in the earn-in agreement, Pasofino is on track to earn 49% interest in Dugbe (prior to the issuance of the Liberian Government’s 10% carried interest).
Once the 49% earn-in is completed, Pasofino intends to exercise its right under the earn-in agreement with
Hummingbird to acquire 100% ownership of the project by exchanging Hummingbird’s 51% controlling interest for a 51% controlling interest in Pasofino, it noted.
Dan Betts, CEO of Hummingbird Resources, commented: “Yesterday’s news from Pasofino that the Dugbe FS is moving rapidly towards completion in April is very encouraging. We look forward to reviewing what promises to be very strong project economics as highlighted by today’s update and those as highlighted in the PEA release in June 2021.”
The completion of the FS will mark a major milestone for Dugbe and complete its journey from being a pure exploration asset to a viable project, with strong project economic fundamentals. We will provide more details post receiving and analysing the FS from Pasofino in April.”
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