Last checked at 28 Nov 2013 07:00
28 November 2013
Hummingbird Resources plc
("Hummingbird" or the "Company") (AIM: HUM)
Updated Interim Tuzon Resource
Hummingbird, the Liberian gold exploration and development company, is pleased to announce an updated interim Mineral Resource Estimate for its Tuzon Deposit located within the Dugbe 1 Project.
Highlights
· New Mineral Resource estimate provided by SRK Consulting (UK) Ltd constrained within a US$1,500 pit shell and using a 0.5 g/t cut off grade comprises 37.6 Mt at an average grade of 1.27 g/t for 1.54 Moz of gold
· The Mineral Resource tonnage is 65% of the drill-defined mineralisation within the geological deposit
· Contained within this resource are Indicated Mineral Resources of 12.8 Mt at 1.22 g/t for 0.5 Moz, including two higher grade zones of 337,000 oz at 1.57 g/t and a further 77,000 oz at 1.44 g/t
· Using a $1,200 pit, the resource remains robust showing a total resource of 1.5 Moz, including an Indicated Mineral Resource of 12.5 Mt at 1.23 g/t for 0.5 Moz
· A high-grade US$600 starter pit contains 7.8 Mt at an average grade of 1.63 g/t for 0.41 Moz, based on a 0.8 g/t cut off grade has been identified; this has a low strip ratio of 1.3:1 (lower grade resource to stockpile and waste per 1t of high grade resource)
· Definition of a robust geological model developed through an extensive geological modeling process
· Only an estimated 2,500 metres of infill drilling is anticipated to upgrade remainder of the resource to indicated
· This drill program has been mobilized already and should be completed by January 2014
· Detailed Feasibility Study remains on track to be completed in Q3 2014
Dan Betts, Chief Executive of Hummingbird Resources, said:
"These results confirm the Company's confidence in the Tuzon deposit's ability to underpin initial gold production at the Dugbe 1 Project. The low strip ratio and higher grade zones are materially better than in the PEA economics and there is clear potential for further upside. Furthermore, the robustness of the Resource at US$1,200 gold is excellent. The focus of this remodelling work has been to confirm the existence of higher grade zones of ore that would be potentially mineable in the early years of the project and today's resource work confirms the existence of such zones.
Drilling is about to commence on the additional holes recommended by SRK focusing on upgrading the remaining Tuzon Resource to Indicated. This drilling accounts for less than 10% of total metres drilled to date at Tuzon."
Background
To date, Hummingbird has conducted 15,802m of infill drilling in 2013, with the Company announcing the results from the final 15 holes drilled in August 2013.
The main aim of the programme was to underline the overall grade and confidence of the Tuzon deposit as defined in the Preliminary Economic Assessment ("PEA"). The results obtained from the recent drilling when combined with exploration data from previous drilling campaigns have contributed hugely to the understanding of the deposit and the validity of the geological model.
Hummingbird appointed SRK Consulting (UK) Limited ("SRK") to undertake a Mineral Resource Estimate ("MRE") on the Tuzon deposit. The Company has received a memorandum from SRK which contains an interim mineral resource. The final MRE report together with an updated model will be provided to Hummingbird in due course on completion of the additional drilling.
Mineral Resource Statement
The Tuzon deposit has been explored and sampled using appropriate methodologies and is sufficiently understood to support the estimation of Indicated and Inferred Mineral Resources.
The 2013 infill drilling was carried out on an 80x80m grid using diamond core rigs and was supported by an extensive trenching programme. With mineralisation from surface trenching is an effective tool to support Resource definition. Rigorous Quality Assurance / Quality Control ("QAQC") was adhered to throughout the programme and inspected on site visits by SRK. SRK were satisfied that the assay results are sufficiently sound to be used for resource estimation purposes.
A geological model was developed jointly by HBR geologists and SRK to constrain the gold mineralisation and to improve understanding of both geological and grade continuity. The geometry of the deposit is controlled by 3 major folding phases (F1-F3), with only localised minor shearing and faulting. Gold mineralisation is localised in the orthopyroxene gneiss near to the contact zone between this and the felsic biotite gneiss. The general form of the deposit is a recumbent fold (F3) with folded limbs (F2). Because of the folded nature, SRK used the GoCAD software to create the block model and then to "unfold" it so that the variographic analysis and grade interpolation could be undertaken most effectively. The grade was interpolated using Ordinary Kriging, and the resulting informed block model then "re-folded" for determining the Mineral Resources.
The table below shows the resulting Mineral Resource Statement for the Tuzon Project with an effective date of 11th November 2013. The statement has been classified in accordance with the JORC Code, by the Competent Person, Mr Martin Pittuck (CEng, MIMMM).
Figure 1: Mineral Resource Statement for the Tuzon Gold Project as of 11th November 2013
Classification | Zone | Density | Tonnage (Kt) | Au (g/t) | Au (Koz) |
Indicated | A (High Grade) | 2.78 | 6,650 | 1.57 | 337 |
A (Low Grade) | 2.78 | 4,180 | 0.60 | 81 | |
B (High Grade) | 2.78 | 1,670 | 1.44 | 77 | |
B (Low Grade) | 2.78 | 300 | 0.59 | 6 | |
Total | 2.78 | 12,800 | 1.22 | 501 | |
Inferred | A (High Grade) | 2.78 | 4,510 | 1.46 | 212 |
A (Low Grade) | 2.78 | 4,760 | 0.63 | 96 | |
B (High Grade) | 2.78 | 10,810 | 1.75 | 606 | |
B (Low Grade) | 2.78 | 1,240 | 0.54 | 21 | |
Hangingwall 1 | 2.78 | 1,170 | 0.72 | 27 | |
Hangingwall 2 | 2.78 | 600 | 1.06 | 21 | |
Internal | 2.78 | 430 | 0.75 | 11 | |
Oxide | 1.7 | 1,310 | 1.10 | 46 | |
Total | 2.72 | 24,830 | 1.31 | 1,040 | |
Grand Total | 37,630 | 1.27 | 1,541 |
*Reported within a US$1,500 pit shell at a cut-off grade of 0.5 g/t
The material differences between the WAI Potential Mineable Resource Estimation from 2013 and the 2013 Mineral Resource Statements are the change in classification and the decrease in total tonnage. The grade has not changed significantly. The decrease in tonnage is due to the constraint of the 2013 Mineral Resource by the US$1,500 pit shell.
Further to the declaration of the Mineral Resource Statement, SRK have produced tables that show the grade and tonnage in the current block model within a US$1,200 and a US$600 pit shell.
Figure 2: Total Tonnage contained within a US$ 1,200 pit shell (inclusive of the US$600 pit shell)
Classification | Zone | Grade Range | Density | Tonnage (Kt) | Au (g/t) | Koz |
Indicated | A | 0.5-0.8 g/t | 2.78 | 3,810 | 0.59 | 72 |
>0.8 g/t | 2.78 | 6,720 | 1.56 | 338 | ||
B | 0.5-0.8 g/t | 2.78 | 300 | 0.59 | 6 | |
>0.8 g/t | 2.78 | 1,660 | 1.44 | 77 | ||
Total | 0.5-0.8 g/t | 2.78 | 4,110 | 0.59 | 78 | |
>0.8 g/t | 2.78 | 8,380 | 1.54 | 415 | ||
Inferred | A | 0.5-0.8 g/t | 2.78 | 3,190 | 0.60 | 61 |
>0.8 g/t | 2.78 | 4,630 | 1.43 | 213 | ||
B | 0.5-0.8 g/t | 2.78 | 1,060 | 0.54 | 18 | |
>0.8 g/t | 2.78 | 10,450 | 1.75 | 588 | ||
Hangingwall 1 | 0.5-0.8 g/t | 2.78 | 280 | 0.74 | 7 | |
>0.8 g/t | 2.78 | 40 | 0.82 | 1 | ||
Hangingwall 2 | 0.5-0.8 g/t | 2.78 | 10 | 0.78 | - | |
>0.8 g/t | 2.78 | 470 | 1.10 | 17 | ||
Internal | 0.5-0.8 g/t | 2.78 | 800 | 0.65 | 17 | |
>0.8 g/t | 2.78 | 340 | 0.92 | 10 | ||
Oxide | 0.5-0.8 g/t | 1.7 | 370 | 0.67 | 8 | |
>0.8 g/t | 1.7 | 880 | 1.32 | 37 | ||
Total | 0.5-0.8 g/t | 2.71 | 5,710 | 0.60 | 111 | |
>0.8 g/t | 2.72 | 16,810 | 1.60 | 866 | ||
Grand Total | 0.5-0.8 g/t | 2.74 | 9,820 | 0.60 | 189 | |
>0.8 g/t | 2.74 | 25,190 | 1.58 | 1,281 | ||
Category | Overall Strip Ratio (t:t) | Tonnage (kt) | Au (g/t) | Koz | ||
Low Grade Resource (>0.5 g/t) | 35,010 | 1.31 | 1,470 | |||
Waste | 114,040 | 0.04 | 161 | |||
Stripping Ratio (t:t) | 3.26 | |||||
High Grade Resource (>0.8 g/t) | 25,190 | 1.58 | 1,281 | |||
Waste | 123,860 | 0.09 | 350 | |||
Stripping Ratio (t:t) | 4.92 | |||||
Figure 3: Total Tonnage contained within a US$600 pit shell split by grade range
Classification | Zone | Grade Range | Density | Tonnage (Kt) | Au (g/t) | Koz |
Indicated | A | 2.78 | 560 | 0.42 | 8 | |
0.5-0.8 g/t | 2.78 | 860 | 0.60 | 17 | ||
>0.8 g/t | 2.78 | 2,240 | 1.67 | 120 | ||
B | 2.78 | 10 | 0.26 | - | ||
0.5-0.8 g/t | 2.78 | 60 | 0.62 | 1 | ||
>0.8 g/t | 2.78 | 760 | 1.51 | 37 | ||
Total | 2.78 | 570 | 0.44 | 8 | ||
0.5-0.8 g/t | 2.78 | 920 | 0.61 | 18 | ||
>0.8 g/t | 2.78 | 3,000 | 1.63 | 157 | ||
Inferred | A | 2.78 | 920 | 0.40 | 12 | |
0.5-0.8 g/t | 2.78 | 300 | 0.54 | 5 | ||
>0.8 g/t | 2.78 | 1,610 | 1.59 | 83 | ||
B | 2.78 | 410 | 0.30 | 4 | ||
0.5-0.8 g/t | 2.78 | 170 | 0.59 | 3 | ||
>0.8 g/t | 2.78 | 2,660 | 1.69 | 145 | ||
Internal | - | - | - | - | ||
0.5-0.8 g/t | 2.78 | 40 | 0.65 | 1 | ||
>0.8 g/t | 2.78 | 10 | 0.92 | - | ||
Oxide | 1.7 | 100 | 0.40 | 1 | ||
0.5-0.8 g/t | 1.7 | 120 | 0.73 | 3 | ||
>0.8 g/t | 1.7 | 560 | 1.42 | 25 | ||
Total | 2.7 | 1,430 | 0.37 | 17 | ||
0.5-0.8 g/t | 2.57 | 630 | 0.59 | 12 | ||
>0.8 g/t | 2.66 | 4,840 | 1.63 | 253 | ||
Grand Total | 2.72 | 2,000 | 0.39 | 25 | ||
0.5-0.8 g/t | 2.69 | 1,550 | 0.60 | 30 | ||
>0.8 g/t | 2.71 | 7,840 | 1.63 | 410 | ||
Category | Overall Strip Ratio (t:t) | Tonnage (kt) | Au (g/t) | Koz | ||
Low Grade Resource (>0.5 g/t) | 9,390 | 1.46 | 440 | |||
Waste | 8,700 | 0.09 | 25 | |||
Stripping Ratio (t:t) | 0.93 | |||||
High Grade Resource (>0.8 g/t) | 7,840 | 1.63 | 410 | |||
Waste | 10,250 | 0.17 | 55 | |||
Stripping Ratio (t:t) | 1.31 | |||||
Planned Drilling
Hummingbird and SRK reviewed the current Tuzon resource model and compiled a preliminary drilling programme which comprises 17 infill drillholes and five hole extensions which total around 2,500m. If the results of this programme confirm the current geological and grade model the expectation is the material within this area currently classified as Inferred Resources will be upgraded to Indicated Resources.
Competent Person Review
David Pelham has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. David Pelham is a Director of the Company and is a member of the Institute of Materials, Minerals and Mining.
SRK have also reviewed the information contained in this announcement and confirms it is in accordance with the facts, it does not omit anything likely to affect the import of such information and is in accordance with the guidelines and reporting terminology given in the JORC Code 2004.
-ENDS-
Enquiries:
Hummingbird Resources plc
Daniel Betts, Chief Executive Officer | |
Thomas Hill, Finance Director | |
Robert Monro, Head of Business Development | +44 (0) 203 416 3560 |
Cantor Fitzgerald Europe | |
Nominated Adviser and Broker | |
Stewart Dickson / Tom Sheldon / Jeremy Stephenson | +44 (0) 207 894 7000
|
FTI Consulting LLP | |
Financial PR | |
Ben Brewerton / Oliver Winters | +44 (0) 207 831 3113 |
Notes to Editors
About Hummingbird Resources Plc
Hummingbird Resources plc is an AIM quoted mineral exploration company incorporated in England and Wales and headquartered in London. Since its establishment in November 2005, the Company and its subsidiaries (the "Group") has been active in Liberia, West Africa, and is currently the holder of the largest area of mineral exploration ground in the highly prospective Birimian geological region of eastern Liberia. The Group has published a PEA on its project showing on a 3.5Mtpa tank leach operations an NPV of US$337m on a Capex of US$212m for an IRR of 43.4%. This gives a payback period of 3 years and is based on a 10% discount rate and US$1,500 gold price (three year average gold price at time of release).
The Group has published a NI43-101 compliant Inferred Resource on its Dugbe F deposit of 43.01 million tonnes at 1.28 g/t Au to give 1,764,000 ounces of gold using a lower cut-off grade of 0.5 g/t Au and no upper cut-off grade.
In 2013, the Group is moving the Dugbe 1 Project towards feasibility with 15,802m of infill drilling completed this year. Additionally, the Group's licence areas constitute a significant proportion of eastern Liberia's Birimian sequence.
For more information, please visit www.hummingbirdresources.co.uk