Hummingbird Resources plc said it would not meet its lower end of 2020 production guidance at its Yanfolila gold mine in Mali due to extreme rain and the military coup during August.
Total ounces poured year to date as at the end of November were approximately 93,000oz but the company had hoped for 110,000 – 125,000oz.
The military coup enforced an additional border closure for approximately a month, which added to the continued logistical complications caused by Covid-19.
Although the country is in the dry season and Hummingbird is mining higher grade ore this quarter, it will miss its target.
The company said that gold not produced this year would be recovered in the future particularly at the key producing pit of KE. High grade ore remained at a depth below the current pit floor and is currently being mined.
The news follows a senior management site visit to Yanfolila mine last week to review Hummingbird’s plans, the 2021 budget, the company’s managerial roles, mine operations, plant, facilities and overall processes in place and to visit community projects.
A final drilling programme is being conducted at the Sanioumale East (SE) deposit with results expected before the end of 2020.
Hummingbird’s chief executive Dan Betts said that 2020 had been a difficult and frustrating year.
“The harsh reality is that should we fail to meet guidance, no matter what the circumstances, it will be viewed as such and this is a fact that weighs heavily on the team.
“I do believe that Yanfolila, which will have paid off all its debt in the first half of next year, is well set up to deliver solid production for the years to come. Our exploration programme this year has produced many encouraging results which we are confident will contribute to additional resources being included into the mine plan to extend mine life.”
Hummingbird’s portfolio includes the Kouroussa gold project in Guinea where pre-development plans continue. The company is waiting for a mining licence which it said would make it a multi-asset company in the future producing more than 200koz pa.
Mr Betts added that having several assets was key for the company’s growth and to mitigate “single-mine risks factors as demonstrated this year at Yanfolila.”
Hummingbird also checked the company-built infrastructure including water towers, hospital clinics, and market garden infrastructure at local community projects. Future plans cover training, health and reforestation programmes.