Hummingbird looking at extension of Yanifolia Gold Project

Hummingbird Resources was quite literally sitting on a goldmine on Tuesday, revealing promising results drom a desktop study on the Gonka desposit.

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Gonka was located five kilometres south of the proposed Yanifolia Gold Project in Mali.

That project did not currently include the Gonka deposit, but Hummingbird said the results of the study demonstrated the potential to significantly increase the net present value and mine life of the project.

The AIM-traded resources company said that the study completed by its consultants, DRA, at Gonka, found a mining inventory of 169,000 ounces over a six year mine life, consisting of 92,000 ounces at 2.3 grams per tonne in open pit, and 77,000 ounces at 4.5 grams per tonne underground.

With the news came an agreement from Taurus Mining Finance Fund to a one month extension to Hummingbird's $15m (£10.4m) bridge facility to 8 March 2016. The company would provide a further update prior to that.

"It has always been our believe that Yanifolia's mine life will grow significant;y, and this is another step in that process", said Hummingbird CEO Dan Betts.

"This study adds $24m to the DFS NPV and 169,000 ounces of gold to the mine life, a very pleasing piece of upside", he added.

Betts warned that the study was at early stage, however he anticipated extensions of the underground resources to increase the size of the deposit further into the future.