Hummingbird Resources (LON:HUM) said construction work is to begin ‘imminently’ at its flagship Yanfolila gold project in Mali as it aims to get the mine to production next year.
It is starting the earthworks and has ordered a ball mill, mineral sizer and carbon-in-lead tanks – all key to processing the ore. And it has also placed a request for another long-lead-time item, a tower crane.
The progress report was contained in a wide-ranging update on activity in the first quarter.
In it was a summary of the optimisation study, which was able to increase the size and extend the life of Yanfolila.
It also underlined the robust economics of the project, which has a net present value of US$72.4mln, an internal rate of return of 35% and C1 cash costs of US$641 an ounce.
It will produce 100,000 ounces of the precious metal in its first year and 79,000 per annum over the next six and half, while the start-up investment is around US$72mln.
Hummingbird recently raised US$9.5mln via a placing and open offer and a mandate setting out the key terms of a proposed US$75 million debt facility has been agreed with Taurus Mining.
While the focus has mainly been on Yanfolila, work continues to develop the 4.2mln-ounce Dugbe 1 Project in Liberia.
A hydro-electric power pre-feasibility study collaboration agreement has been signed with the IFC InfraVentures, the global infrastructure fund backed by the world bank, and energy firm Aldwych International.
Hummingbird also revealed the consulting engineer Knight Piesold is to commence fieldwork in May and study expected to be completed next April.
Chief executive Dan Betts said: "Whilst we are currently focused on the significant near-term production potential at Yanfolila, we also remain committed to the longer-term "company-making" upside of our Dugbe 1 gold project in Liberia.”