Founded in late 2005, Hummingbird Resources is a West African gold explorer and developer (AIM:HUM), which listed on AIM in December 2010. Since IPO the Company has significantly grown its initial resource from an initial 0.8Moz to 4.2Moz at its Dugbe Gold Project in Liberia, West Africa and with the acquisition of Gold Fields’ gold assets in Mali, Hummingbird is now a multi-project, near-term producer with a 6Moz gold resource and 4,000 km2 of exploration ground.
Hummingbird’s strategy has always been to create a gold company that has a portfolio of assets encompassing exploration, development and production and the purchase of the Yanfolila Project marks a significant step towards fulfilling that ambition. Gold Fields’ decision to accept Hummingbird shares as consideration for the acquisition underlines the potential of the Yanfolila Project, its portfolio in Liberia and their confidence in Hummingbird’s ability to bring projects into production.
The Yanfolila Project provides Hummingbird with a fast, simple and low cost route to production, and the Company expects to commence gold production in 2017 at an initial gold production rate of 120koz in year one. Hummingbird has acquired an attractive and highly profitable project which can be brought into production within 24 months of acquisition. The project has excellent grade with low capex and opex, and has been acquired at an attractive valuation of $11 per oz of resource.
The Company’s Dugbe Gold Project remains a key focus and the Company published a positive PEA in April 2013 and is currently progressing its Detailed Feasibility Study. Dugbe Gold Project was the first mining project in Liberia to secure investment from the IFC, a member of the World Bank Group.
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