Yanfolila construction continues on time, Hummingbird reports

Hummingbird Resources announced a review of activities during its first quarter on Monday, including the advancement of mine construction at the Yanfolila Gold Project in Mali, ahead of its first gold pour expected by the end of 2017.

The AIM-traded company said construction of the 1.2mtpa Yanfolila mine was progressing on time and on budget ahead of its initial mining targeted in the third quarter, and first gold pour by year-end.

It said the structural, mechanical, platework and piping contract had commenced in January with IMAGRI SARL under the supervision of SENET, and the ball mill was completed and due to arrive at Yanfolila in May.

A fuel supply contract was signed with Zen Petroleum Mali, which the board described as a “well-established” West African fuel company, and the process plant foundations were now largely complete.

Construction of the carbon-in leach tanks was due for completion in May 2017.

The tailings storage facility was now under construction with Inter Mining Services, a Malian civil contractor, and African Mining Services was mobilising to site to assist with TSF construction ahead of pre-production mining, the board explained.

It confirmed the completion of the initial phase of pre-production grade control drilling, the appointment of Kevin Moxham as general manager for Yanfolila, and the development of an exploration plan to increase mine life.

On the corporate front, the government of Mali was set to pay Hummingbird approximately $11m for an additional 10% stake in Yanfolila.

A $60m debt facility was entered into with Coris Bank International Group in April, which the board said completed the funding package for Yanfolila and further strengthened its local content.

Cash in bank stood at $54m at 31 March, prior to the repayment of the Taurus $25m bridge loan in April.

The company received the first tranche of the CFA 15.5b (approximately $25m post quarter-end from Coris Bank International as well.

“Q1 saw another impressive level of work from the team on the ground, currently numbering 410 people, with the commencement of steel work on site and significant progress across all areas,” said Hummingbird CEO Dan Betts.

“With the overall project now about 60% complete, we are happy with how the Yanfolila construction is shaping up so far; we remain on time and budget to commence production by the end of the year.”

Betts said the arrival of AMS to start work on the TSF, and subsequently pre-production mining, were significant upcoming milestones as the company continued to ramp up development towards production.

“Additionally we are delighted with the refinancing with Coris Bank International in whom we have found a local, supportive, long-term, constructive partner to build the company with.”