Hummingbird Resources plc said a definitive feasibility study showed a 2.76 million oz reserve base and 14-year life of mine with further potential for its 2,559 km2 Dugbe gold project in southern Liberia.
MINE LIFE
Currently comprising two deposits of Dugbe F and Tuzon, discovered by Hummingbird in 2009 and 2011 respectively, the project holds many more gold prospects including the Bukon Jedeh area acquired in late 2020.
Canadian earn-in partner Pasofino Gold Ltd prepared the DFS which included “strong financial metrics and fast capital payback”.
Pre-tax NPV5% is of US$690 million ($530m post-tax), 26.35% IRR (23.6% post-tax) at a base gold price of US$1,700 oz.
Payback would be approximately 3.5 years from start of production, with a life of mine (LoM) all in sustaining cost (AISC) of US$1,005 /oz and US$29 /t cash cost.
The project requires pre-production capital of $397m excluding owners’ costs for a 5Mtpa processing plant.
Production of 2.27moz gold over a 14-year LoM would have an average annual production of 200,000oz for the first five years.
Dugbe holds an additional 67,000 oz of inferred mineral resources within the DFS pit and immediate sidewalls, which have not been included in the mineral reserves.
Hummingbird said that an environmental and social impact assessment (ESIA) process was nearing completion and submission expected in June 2022.
The project is 76km by road from the Port of Greenville, which was repaired and improved as part of the FS process.
All build and operational cargo will be transported through the port where the project has government-supported berthing rights.
The Tuzon and Dugbe F deposits are 4km apart and serviced by a central processing plant.
LNG power generation hybridised with solar PV power generation would produce an estimated levelised cost of energy of $175.10/MWh.
OWNERSHIP
“We are delighted to receive the results from the robust DFS that has been conducted by Pasofino,” said Hummingbird chief executive Dan Betts.
“We look forward to now working with Pasofino to conduct a strategic review of our options to best realise the maximum value of Dugbe for all stakeholders.”
Following publication of the DFS, Pasofino will earn its 49% economic interest in the project.
Pasofino and Hummingbird have the right to exercise the option to consolidate ownership by converting Hummingbird’s 51% ownership of the project for a 51% shareholding in Pasofino.
Pasofino would own 100% of the project subject to approvals.