Hummingbird Resources plc has issued a formal ‘step-in notice’ allowing it to take contractual control of operations, suspended since 17 March, at its Kouroussa mine in Guinea.
MINING
The company said discussions continued with Corica Mining Services, which stopped work, aimed at returning its main contractor to work and ramp-up operations under the existing mining contract.
Hummingbird is also progressing towards restarting and ramping up mining activities to achieve commercial production “as soon as possible”.
The step-in notice allows Hummingbird to take contractual control of operations, issue direct instructions to Corica and its third-party contractors and, if necessary, appoint alternative operators or contractors.
The company added it had signed a short-term contract with Etablissement Adama Sidibé (ETASI), to enhance the West African contractor’s support fleet and accelerate mining activity.
Hummingbird is also in talks with additional operators and contractors as it continues discussions with its main lender Coris Bank International.
Drilling and blasting at Kouroussa have restarted on an interim basis to allow mining access to the high-grade regions of the key Koekoe deposit.
Operations are expected to begin the near-term mining of high-grade ore.
Since 18 March 2024, the company has achieved several weekly gold pours averaging c.700 oz per week.
Chief executive officer Dan Betts said that Hummingbird remained resolute on its contractual rights.
“The strategic actions we have taken, including the growing of our partnership with ETASI, an operator we have worked closely with in the past, has meant that we are able to recommence the ramp-up of production towards commercial production and is a testament to the resilience and experience of our team to deal with the numerous challenges we have faced over the last four weeks.
“Over this period, Kouroussa has demonstrated its strategic significance and potential, especially in the current gold pricing environment, through the weekly gold pours despite the significantly reduced mining fleet and the clear visibility of high-grade material that is well within reach.”
He added that operations at the company’s Yanfolila gold mine in Mali continued in line with full-year guidance of 75,000-85,000oz.
Hummingbird, which also owns 53% of the Dugbe gold project operator in Liberia, aims to become a 200,000 oz pa gold producer.