Hummingbird Resources receives ‘encouraging’ first set of results at Dugbe Gold Project
(HUM ) said it is “encouraged” by the first set of results it has received from the holes drilled at the Dugbe Gold Project (the "Project") in Liberia.
West African and Canadian-focused gold developer, Pasofino Gold, is carrying out the drill programme at Dugbe, and covering all associated costs, as part of its earn-in agreement for a 49% stake in the Project, with Hummingbird maintaining a controlling interest of 51%.
The Group received results for seven infill holes of the planned 5,500n drill programme at the Dugbe F deposit, these being the first to be drilled at the Dugbe F deposit since 2014.
All 7 of the new drillholes from the 5,500m drill programme intersected gold mineralisation of the expected range of thickness and grade with gold bearing intersections being up to 26.7 meters in thickness. The group stated that these holes ‘support the continuity of the deposit.’
The 'infill drilling' is aimed at 'upgrading' the Inferred Mineral Resource Estimate with the objective of achieving an Indicated Mineral Resource of between 0.6 and 1M ounces.
The current indicated mineral resource estimate for Dugbe F is 5.8 Mt with an average grade of 1.46 g/t Au containing 273 k oz gold while the current inferred mineral resource estimate is 16.3 Mt with an average grade of 1.57 g/t Au containing 823 k oz of gold.
"These intersections and the rate at which we are progressing the drilling puts us on track to achieve our target of a 0.6 to 1.0 M ounces in the Indicated category at Dugbe F which would bring the project total closer to 3 Moz in the Indicated Category,” said Ian Stalker, CEO of Pasofino.
It said that additional shallow mineralized intervals are present above the main zone within the southern part of the deposit (Figures 1 and 2) and have the potential to add to the resource as this mineralisation was not part of the most recent Mineral Resource Estimate.
Figure 1. Dugbe Gold Project Mineral Development Area.
Figure 2. Cross section through the southern part of Dugbe F. New intersections are highlighted yellow.
Stalker added, “We have 3 rigs turning 24/7 at the moment and are completing 8 to 10 holes per week. Two rigs will move over to the larger Tuzon deposit as soon as access is ready."
Pasofino Gold said a Preliminary Economic Assessment (‘PEA’) has now been initiated and is to be released in due course, prior to the release of the Definitive Feasibility Study (‘DFS’).
"We are encouraged by the first set of results we are receiving from Pasofino at the Dugbe F deposit and the progress being made at the Project,” said Dan Betts, CEO of Hummingbird.
He added that, “The results we are already starting to see put Pasofino on track to deliver this, supporting the DFS Pasofino are completing as part of its earn-in agreement."
We have 3 rigs turning 24/7 at the moment and are completing 8 to 10 holes per week. Two rigs will move over to the larger Tuzon deposit as soon as access is ready."
Shares in Hummingbird Resources have increased by over 6% since the beginning of March. The stock was trading 0.34% higher today at 22.07p following the announcement. Today, the Company outlined that the encouraging initial results returned from the holes have already confirmed the potential of increasing the value of the Dugbe Gold Project in Liberia.
Hummingbird believes“the foundations are set” for 2021 to be a strong year for the business as it looks to capitalise on several organic growth opportunities ahead after finishing 4Q20 with “a solid net cash balance sheet position with a strong internal growth pipeline.”
Last month, the Group outlined a 2021 production guidance of 100,000 - 110,000oz of gold, with All in Sustaining Cash Cost ("AISC") of US$1,250 - 1,350/oz on gold sold. Hummingbird detailed that its production profile is to be weighted towards the second half of the year.
In particular, an important financial milestone for investors to look out for will be the final repayment of bank loans in 2Q21 to position the company for debt free growth in FY21.
Reasons to Follow HUM
- Strong underlying geological indications at Yanfolila, Kouroussa and Dugbe with more drilled expected to drive resources and production higher.
- Hummingbird has put a strong management team in place since 2015 with expertise in mining commodity markets and in-region experience of West Africa who have a track record of delivering projects on time and on budget.
- Significant growth potential of this multi-asset and multi jurisdiction mining company with appetite to expand the number of projects going.
- Lots of positive news events expected in FY21.
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