Hummingbird Regulatory News (HUM)

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

15 December 2015

Hummingbird Resources plc ('Hummingbird' or 'the Company')

 Maiden Reserves at Yanfolila and Project Update

Hummingbird Resources plc (AIM: HUM), is pleased to announce its maiden Ore Reserves at the Yanfolila Gold Project in Mali ("Yanfolila" or the "Project"). This represents a 20% increase from the in-pit Mineral Resource in the Optimisation Study. The Reserve Report is based on the Resources at the Komana East and West pits as these will be mined first (Phase 1). The Project has significant Resources at other nearby deposits including Guiren West, Gonka, Sanioumale East and Sanioumale West which will be mined at a later stage (Phase 2). The Company would also like to give an update to shareholders on the development of Yanfolila whilst it completes ongoing due diligence with Taurus Funds Management in advance of the full debt draw down.

Yanfolila Highlights

· Gross maiden Probable Reserves1 of 6.82Mt @ 3.03 g/t for 665,600oz Au

o Increase of 118,600oz Au from the in-pit Mineral Resource inventory reported in the March 2015 Optimisation Study mine plan of 547,000oz Au, with the grade increasing by 15%, using a US$1,100 pit shell

· 100% of in-pit Indicated Resources have converted into Reserves

o Plant throughput capacity increased to 1.24Mtpa from 1.0Mtpa (24% increase), benefits include:

§ Increased annual gold production for c120,000ozs in first full year of production

§ Ability to process all ore types including 1Mtpa of fresh ore

· Updated gross Mineral Resource2 of 1.8Moz Au @ 2.54 g/t

o Additionally there is a further 390,700ozs Au @ 1.92g/t of mineral inventory3 previously defined by Gold Fields Limited but as yet not converted to JORC or SAMREC compliant Mineral Resources

· Project economics are being updated and will be released in January 2016

· Project construction timeline remains unchanged at 12-15 months from main debt draw

Dan Betts, CEO of Hummingbird Resources, said: 

"Achieving a maiden Ore Reserve at Yanfolila is a significant milestone for the Company. With an increased gold grade of 3.03 g/t it confirms Yanfolila as a quality, high-grade, low cost project.

"We have increased the size of our processing plant to process up to 1.24Mtpa, as well as processing harder, fresh ore types. The ability to process greater volumes of fresh ore has allowed us to expand and deepen the open pits of our maiden Ore Reserve, resulting in more recoverable gold. Together with a more flexible operating plan it also gives us scope to further expand our Ore Reserves from our existing deposits. The 24% increase in throughput will also significantly enhance annual gold production.

"Additionally, the plant has been designed with the ability to further increase capacity to 1.5Mtpa. With so many Indicated ounces outside the mine plan at nearby deposits and high-grade underground potential at Gonka, the Company believes there remains significant production upside at Yanfolila.

"We look forward to making further announcements on an updated mine schedule and Project economics once finalised."

Please click on the link to see a map of the Yanfolila Project.

 http://www.rns-pdf.londonstockexchange.com/rns/0120J_-2015-12-14.pdf

Reserves and Resources

Probable Reserves456

Notes:

1. JORC Code (2012) compliant

2. JORC Code (2012) and SAMREC (2007) compliant

3. Non code compliant mineral inventory

4. Numbers may not sum due to rounding

5. US$1,100 gold price and 8% discount rate applied

6. Full notes in the appendix

7. Hummingbird has an 85% interest in the Project with a Malian partner holding a 5% interest and assuming the Government of Mali takes up its free carried interest of 10%. The Government of Mali also has the right to purchase a further 10% interest.

Indicated and Inferred Resources (inclusive of Reserves)

Gold Fields 2013 Non Code Compliant Mineral Inventory

Notes:

1. Reported Mineral Resources for Komana West and Komana East have been prepared in accordance with the JORC Code (2012 Edition) and are current as at 02 December 2015. The reported Mineral Resources for Guirin West oxide material and Sanioumale East and Sanioumale West oxide material are those previously reported by Hummingbird via a press release in December 2014 which remain current.

2. The Company has not re-evaluated all of Gold Fields ("GF") Mineral Resources, such as Gonka and Kabaya South which were publically reported by GF in December 2012. Hummingbird continues to quote the Resources as announced in the RNS on 12th June 2014 that comprised 1.46Moz of SAMREC 2009 compliant resources.

3. Also reported in the RNS on 12th June 2014, Hummingbird indicated that the Mineral Resource Estimate ("MRE") of 1.463Mozs could be further enhanced by adjusting the modelling variables and bringing in more recent data. These resources 'GF 2013 DRS' were reported as part of the 1.817Mozs and have been reported again for completeness.

4. A full breakdown of these individual Resources, by specific code, is included later in the document

The information in this release that relates to the Mineral Resource Estimate update for Komana West and Komana East, as prepared by CSA Global (UK) Ltd, has been compiled by Mr. Galen White, Principal Geologist of CSA Global (UK) Ltd. Mr. White is a Competent Person who is a Fellow of the AusIMM. Mr. White has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Mineral Reserves. Mr. White consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

The information in this release that relates to Ore Reserves, as prepared by CSA Global Pty Ltd is based on information compiled by Mr Paul O'Callaghan, of CSA Global Pty Ltd. Mr O'Callaghan is a Competent Person who is a member of the AusIMM. Mr. O'Callaghan has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Mineral Reserves. Mr. O'Callaghan consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Yanfolila Project Update

The Project has undergone an extensive amount of development since the last technical update given in June 2015. This work has focussed on maximising the returns of the Project, an ability to withstand a sustained low gold price environment and satisfy the independent technical consultants undertaking due diligence on behalf of Taurus Funds Management.

Announcing the maiden Ore Reserves is the first step to finalising an updated mine schedule and economic analysis for the Project. Increasing the plant capacity to 1.24Mtpa from the previously reported 1Mtpa (Optimisation Study, March 2015) has increased annual gold production and improved the ability of the plant to process fresh ore material. This increased plant capacity and functionality has the potential to further extend the Project life through the development of known Mineral Resources and other prospects located within the Yanfolila Mining Licence.

The Ore Reserves utilised Whittle optimisation at a US$1,100 gold price and 8% discount rate to determine the pit shells that deliver the optimal net present value ("NPV") for the Project. The processing route has been modified to handle greater volumes of fresh material and now includes a conventional two-stage crushing circuit. Significant work has been done on ore stockpiling to enhance the mine schedule. Average recoveries show 94% recovery in oxide, 92% in transitional and 91% in fresh material.

Please click on link to see new Process Flow Sheet

http://www.rns-pdf.londonstockexchange.com/rns/0120J_1-2015-12-14.pdf 

The Company has defined significant gold Resources outside of the existing Reserve based mine plan which represents Phase 1 of the Project. The additional Resources from Guirin West, Gonka, Sanioumale East and Sanioumale West will represent Phase 2 of the mine plan. A study is being completed on the open pit and underground potential of Gonka which shows significant high-grade potential at depth based on current Inferred Resources.

Detailed due diligence on the Project and technical improvements have taken longer than was anticipated by the Company, however this is a function of the revised plant flow sheet and economic assumptions in a declining gold price environment. The Project itself continues to improve in all areas and the construction time remains constant. However, this extended due diligence period will have a knock on effect to first gold pour and this will now most likely occur during 2017.

The Company would like to thank its supportive shareholders at this time and looks forward to updating them on continued progress in the near future.

Full tables of Reserves and Resources

The reserves and resources shown in the tables below represent the gross reserves and resources attributable to the Project and not Hummingbird's interest in the Project.

Reserves

Notes:

1. Figures above may not sum due to rounding

2. The Ore Reserve statement is supported by:

Studies and documentation made available by Hummingbird and prepared by various Hummingbird in-house personnel and independent consultants which has been prepared for inclusion in a Life of Mine Study ("BFS") currently being compiled.

3. Notes of particular importance are:

3.1. Resource Model has been prepared by CSA Global (UK) Pty Ltd

3.2. US$1,100 for the Life of Mine.

3.3. Discount Rate 8%

3.4. Mining Dilution and mining recovery estimated as 12% and 95% respectively, appropriate for the style of deposit, proposed mining method and mining fleet.

3.5. Metallurgical Processing Recoveries of Au dependent on head grade, grind and residence time for the various material types and averaging 94% for oxides, 92% for transitional material and 91% for fresh material. These recoveries have been based on test work carried out by a number of laboratories over a period of approximately 9 years and reported by Brittan in Oct 2015, and in Section 9 of the Life of Mine Study.

3.6. Mining assumptions and cost estimates are as advised by On The Brink Mining consultant, Mr Onno ten Brinke. Mining costs have been based on mining contract quotations and mineral processing cost estimation by consultants.

3.7. Economic Cut Off Grade of Au 0.78 g/t for oxide, 0.86 g/t for transitional and 0.94 g/t for fresh applied.

3.8. Pit optimisations have been undertaken by Mr Onno ten Brinke of On The Brink Mining.

3.9. Mine designs have been prepared by On The Brink Mining.

JORC CODE (2012 Edition) Resources

KW MRE - December 2015

Notes:

· The MRE reported here is based on information compiled under the supervision of Mr. Galen White, Principal Geologist of independent consultants CSA Global (UK) Ltd. Mr. White is a Competent Person and Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person in terms of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code 2012 Edition).

· MRE for KW includes oxide, transitional and fresh material, reported at a 0.7 g/t Au cut-off as informed by current mining study. The MRE is reported above an irregular surface boundary below which zone continuity deteriorates and which averages 187RL. Vertical depth 270m.

· Density assignation (t/m3) to arrive at contained tonnages are 1.80 for laterite, 1.70 for upper saprolite, 1.90 for lower saprolite, 2.20 for transitional material, 2.90 for fresh basalt and 2.80 for other fresh lithologies.

KE MRE - December 2015

Notes:

· The MRE reported here is based on information compiled under the supervision of Mr. Galen White, Principal Geologist of independent consultants CSA Global (UK) Ltd. Mr. White is a Competent Person and Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person in terms of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code 2012 Edition).

· MRE for KE includes oxide, transitional and fresh material, reported at a 0.7 g/t Au cut-off to a depth of 240 vertical metres to reflect what may be considered a conceptual base of open-pit mining (to the 142RL), and at a cut-off of 1.20 g/t Au below this depth to reflect underground mining potential, which may conceptually be undertaken concurrently with open pit mining, a scenario which is informed by preliminary conceptual appraisal only.

· Density assignation (t/m3) to arrive at contained tonnages are 1.80 for laterite, 1.70 for upper saprolite, 1.90 for lower saprolite, 2.20 for transitional material, 2.90 for fresh basalt and 2.80 for other fresh lithologies.

· The MRE reported here is based on information compiled by CSA and Mr Mark Fleming, an independent consultant for Hummingbird Resources Plc. He is a Competent Person who is a Fellow of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

· Tonnes have been rounded to the nearest 1,000t; Ounces have been rounded to the nearest 100 oz. Grades have been estimated within constraining wire frames interpreted at a nominal cut-off of 0.30 g/t Au. Numbers may not total due to rounding. Contained ounces have been calculated using 1 oz = 31.1035g.

· The MRE disclosed in December 2014 included oxide and transitional material only, since this was the Hummingbird focus of mine planning at that time.

· The reporting gold grade cut-offs were informed by optimisation and economic study at the time of reporting.

· Density assignation (t/m3) to arrive at contained tonnages are 1.80 for laterite, 1.70 for upper saprolite, 1.90 for lower saprolite, 2.20 for transitional material.

Gold Fields 2012 SAMREC Resources

The above Gold Fields ("GF") reported Mineral Resources are effective December 31, 2012 and signed off by GF's competent persons as being in accordance with the SAMREC 2009 code. These Mineral Resources are constrained by open pit mining envelopes (based on a gold price of USD$1,650 oz) optimized using scoping study-level modifying factors. GF did not estimated a Mineral Reserve for these resources, the stated figures above are considered as mineral resources only. No economic cut-off grade was stated by GF nor the material types i.e. oxide, transitional or fresh. The figures above were reported as rounded numbers by GF.

Notes applicable to the above listed Additional Yanfolila Historical Resources for GK and KS

· These resources were modelled, estimated and reported by GF and not CSA, nor Hummingbird.

· At the time of reporting these MRs are reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources, and Mineral Reserves, 2009 Edition (SAMREC Code). Confidence classification (in accordance with the SAMREC Code) assumes annual production scale, bulk open pit mining scenario evaluation.

· The above tonnes and grades were derived from block models estimated by GF as part of their November 2012 Competent Persons' Report, Yanfolila Project, Mali, effective 31st December 2012.

· These Mineral resources are not Mineral Reserves and do not have demonstrated economic viability.

· Some figures may not sum, or average exactly due to rounding. The GF CP deems that these small errors to be immaterial.

· These MRs are reported without dilution and ore loss.

· The MRs are constrained within optimized open pit shells using scoping study parameters including mining, processing, and administration cost estimates; mining parameters; and process recoveries for gold.

· The commodity price used to create the optimised pit shells which the resources are reported within was USD 1,650/oz gold.

· The MRE is reported for material within open pit shells having positive value per mining parcel after process recovery and costs for processing, refining, and overhead have been applied (a parcel being the smallest mineable unit of between 60 m³ and 125 m³).

· No economic cut-off grade was stated by GF nor the material types i.e. oxide, transitional or fresh.

· The CP, (GF's person responsible) has upgraded the confidence classification of certain Inferred Mineral Resources to Indicated following extensive additional infill drilling and improved geological and resource modelling (applicable only to Kabaya South).

Gold Fields De-Risking Study 2013

Notes.

· None of the tonnes and grade listed above were modelled or estimated by CSA, nor Hummingbird.

· The above tonnes and grade were all reported by Hummingbird as part of the 1.8Mozs in June 2014 upon purchase of the project from GF.

· The stated tonnes and grade above have not been reported or published in accordance with any mineral resource code i.e. JORC 2012 or SAMREC 2009.

· The above tonnes and grades were derived from block models estimated by GF as part of their November 2013 Yanfolila De-Risking Study of the Yanfolila Project.

· A full description of the GF 2013 DRS resources will be included in the Hummingbird DFS study, Section 5 - Mineral Resources.

· These tonnes and grades are not included in any mine plan and are for the purpose of developing strategic long term planning scenarios for the Yanfolila operation by Hummingbird.

· The tonnes and grades are not considered as current resources.

· The numbers have been rounded to reflect that this is an estimate. Numbers may not total due to rounding.

· The GK and KS tonnes and grade have been depleted by the reported in-pit tonnes and grades, 1,500,000t at 2.9 g/t and 2,020,000t at 1.31 g/t respectively (2009 SAMREC figures reported above).

· Materially nothing has changed i.e. lithology or weathering surfaces, at these deposits since these tonnes and grade were estimated. It is not known if the above tonnes are diluted or un-diluted.

Qualified Person Review

Murray Paterson has reviewed and approved the technical information contained within this announcement in his capacity as a Qualified Person, as required under the AIM Rules for Companies. Murray Paterson is the Chief Geologist for the Company and is a member of good standing with the Australasian Institute of Mining and Metallurgy (MAusIMM).

**ENDS**

Enquiries:

About Hummingbird Resources Plc

Notes to Editors

Hummingbird Resources (AIM: HUM) is building a leading gold production, development and exploration company. The Company has two core gold projects, the near-term production Yanfolila Gold Project in Mali and the Dugbe development project in Liberia. Its current focus is on bringing Yanfolila, which has a Probable Reserve of 665,600ozs @2.03g/t and total Resources of 1.8Moz of gold and an additional 390,700ozs of non-compliant exploration potential. The high grade gold project has the potential to turn a profit in a varying gold price environment and will allow for quick returns with low operating costs. A US$75 million debt facility has been agreed with Taurus Mining and initial plant earthworks have been completed.

The 4.2Moz Dugbe Gold Project in Liberia provides Hummingbird with excellent development upside. An optimisation of the DFS is on-going whilst Yanfolila is brought to production in the near-term. Additionally, the Company has 4,000km2 highly prospective exploration ground in Mali and Liberia and is constantly evaluating new quality assets.

For more information, please visit www.hummingbirdresources.co.uk

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