Last checked at 18 Mar 2024 09:32
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining
18 March 2024
Hummingbird Resources plc
("Hummingbird", the "Group", or the "Company")
Update on Mining Operations at Kouroussa
Hummingbird (AIM: HUM) provides an update on operations at the Kouroussa Gold Mine in Guinea ("Kouroussa").
Kouroussa's principal contract miner, Corica Mining Services ("Corica"), has temporarily suspended mining operations as of 17 March 2024 as a result of various contractual disputes. Such suspension is a clear breach of the mining contract. As previously announced, since the commencement of the contract, Corica has failed to meet mining contract volumes due to delays in mining equipment mobilisation, commissioning, and overall operating performance.
With the processing plant operating consistently at name plate capacity, and higher-grade ore scheduled to be accessed from the next blast, the Company is well positioned to reach commercial production levels once full mining is achieved.
Hummingbird is working to reach full mining capacity, while continuing to process both low-grade stockpiles and ore being mined separately by a supporting mining contractor which was appointed in H2-2023 to support Corica's mining activities. The supporting mining contractor has one fleet on site to support the contracted four fleets from Corica.
The processing plant is expected to continue to run in the near term, however until increased mining capacity is available, reaching commercial production will not be possible, with production and cash flows increasingly impacted.
Notice has been given to Corica to return to work by Tuesday 19 March 2024, failing which the Company will exercise its rights which could include, stepping in to resume mining, and working with alternative mining contractors and equipment suppliers to achieve full mining operations.
The Company is in discussion with its primary lender, Coris Bank International ("Coris"), regarding the potential implications of the situation on forecast production and the cash flows for the Group.
Coris has been the Company's main financing partner since it financed the construction of the Yanfolila Gold Mine in Mali in 2017 and have been very supportive of the Company's growth strategy throughout.
The Company will provide a further update as and when appropriate.
**ENDS**
Notes to Editors:
Hummingbird Resources plc (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold producing Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production once at commercial production. Further, the Company has a 51% controlling interest in the Dugbe Gold Project in Liberia that is being developed by joint venture partners, Pasofino Gold Limited. The final feasibility results on Dugbe demonstrate 2.76Moz in Reserves and strong economics such as a 3.5-year capex payback period once in production, and a 14-year life of mine at a low AISC profile. The Company's vision is to continue to grow our asset base, producing profitable ounces, while adhering to the highest international standards of Environmental, Social & Governance ("ESG") policies and practices.
For further information, please visit hummingbirdresources.co.uk or contact:
Daniel Betts, CEO Thomas Hill, FD Edward Montgomery, CD | Hummingbird Resources plc | Tel: +44 (0) 20 7409 6660 IR@hummingbirdresources.co.uk |
James Spinney Ritchie Balmer
| Strand Hanson Limited Nominated Adviser | Tel: +44 (0) 20 7409 3494 |
James Asensio Anna Ercegovic | Canaccord Genuity Limited Broker | Tel: +44 (0) 20 7523 8000 |
Bobby Morse Oonagh Reidy George Pope | Buchanan Financial PR/IR | Tel: +44 (0) 20 7466 5000 Email: HUM@buchanan.uk.com |