Hummingbird Resources shares rise on updated Yanfolila ore reserves

Hummingbird Resources updated the market on its open pit ore reserves at the Yanfolila gold mine on Tuesday.

The AIM-traded firm said it intended to update shareholders with a five-year mine plan based on the updated ore reserves, and its 2020 guidance, in early 2020.

It said Yanfolila currently consisted of the Komana East and West, Gonka and Sanioumale West deposits in reserve.

Looking at the updated reserves, Hummingbird reported 7.9 million tonnes of reserve ore at 2.66 grams of gold per tonne, for around 676,000 ounces of gold.

That was an additional 165,000 ounces over the pre-production reserves, and a 32% increase to the reserve base as at 31 October.

The company said more than 199,000 ounces had been processed since start-up to 31 October, and confirmed that maiden reserves at Gonka and Sanioumale West had been achieved.

“I am pleased to provide an update on our open pit ore reserves; which shows a significant increase in reserves from our pre-production inventory,” said chief executive officer Dan Betts/

“We have also identified first ore reserves from Gonka open pit and Sanioumale West, which is very pleasing.

“Early in the new year we will release a five-year mine plan for Yanfolila, based on these reserves.”

Betts said it was the company’s intention to then update that plan on a rolling basis, as further reserves were defined.

“Additionally, I am pleased that we are able to re-commence exploration drilling and study work in the first quarter of 2020, with a renewed focus on ensuring the mine's long term future.”

Betts added that the fourth quarter of 2019 had remained “a strong quarter”, and said the board was “looking forward” to meeting its full year production guidance.

“This will be a great achievement for the team considering the first four months of the year and represents eight solid consecutive months.

“Over the course of 2020 we shall continue to aggressively de-leverage our debt position and strengthen our balance sheet with the anticipation of moving from a position of net debt to net cash.

“Within three years of starting operations this is a significant milestone and will allow us to start to look to move the company forward with cash generation and shareholder value being a key focus.”

At 1405 GMT, shares in Hummingbird Resources were up 2.2% at 20.95p.