Hummingbird Resources plc said it had discovered new ounces of gold and will double its 2021 exploration budget to $10 million at Yanfolila, southern Mali.
The news comes as the company published a new internal mineral resource estimate (MRE) following its £5m 2020 exploration programme.
Hummingbird said it had met last year’s three objectives which included finding additional resources to extend mine life and test new greenfield targets; improving confidence in the company’s mineral inventory by infill drilling within the pit shells; and reorganising the company’s MRE database to include increased JORC reporting.
The company discovered a total of 255,600 ounces of gold during 2020 across three key deposits.
At the end of 2020, total indicated and inferred mineral resources was 1,929,000 oz of gold compared with 2,003,000 oz of gold in the MRE published in March 2019.
At Sanioumale East (SE) drilling revealed a bigger deposit which remains open along strike and at depth. SE showed the greatest increase of 141,900 oz of gold discovered with the JORC MRE now of 204,000 oz of gold.
At Sanioumale West (SW), the company reported a smaller increase in gold ounces of 26,200 oz. The SW JORC MRE is now 164,200 oz of gold.
| Exploration & Depletion | ||||||
| March 2019 to December 2020 MRE Changes Table | March 2019 MRE | 2020 Discovered Resources (12 months) | Mined Resources Depletion (21 months) | Non-Code / Geological Model Change | MRE Adjustments | December 2020 MRE |
| Ounces (kozs) | 2,003 | +255 | -258 | -114 | +43 | 1,929 |
At Komana East (KE), 87,500 oz of gold was discovered and the KE JORC MRE is now 560,600 oz of gold.
Evidence from drilling has shown that KE remains open at depth adds further confidence to KE underground plans.
The 2020 internal MRE will be used to update the reserve statement expected later this year.
PLANS FOR 2021
During 2021, the group’s exploration activities will focus on the three key deposits and greenfield targets.
Testing of greenfield targets will be carried out at six new locations.
The first will be Diaban, to the south of Gonka and proximal to the intersection of two regional structures, with a start date expected within the next few weeks.
Chief executive Dan Betts said that the increase in resources at SE was of particular note and that Hummingbird was already aggressively drilling the site.
“The focus in 2021 will be more towards increasing resources as opposed to infill drilling.
“The cheapest ounces are the ones you find, and this is particularly true at Yanfolila where we will have soon fully paid down our debt, and any extensions to the LOM [life of mine] add meaningful, immediate and tangible value.”