Hummingbird Resources plc announced an expected slow production start to the year with improvements anticipated during the second quarter at its gold projects in Mali, Guinea and Liberia.
In its production, operational and trading report for the Q1 2021, which included ESGs, the miner recorded gold pour of 22,781 oz (Q4 2020: 22,012 oz). Gold sold was 22,019 oz at an average realised price of US$1,788 per oz.
The company reported gold inventory of 2,596 oz at 31 March 2021 valued at $4.4 million.
All-in sustaining cost (AISC) was $1,494 per oz (Q4 2020: $1,496 per oz).
This was driven by relatively low planned quarterly production and mill grades; high strip ratio as the company accesses the Komana West ore body in particular; and sustaining capex being weighted to first half of the year, including the tailings storage facility (TSF) dam lift.
| Unit | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | |
| Gold poured | oz | 22,781 | 22,012 | 24,722 | 24,054 | 30,282 |
| Ore mined | kt | 364,114 | 382,289 | 268,726 | 334,094 | 446,183 |
| Ore processed | kt | 345,374 | 359,208 | 352,348 | 337,926 | 339,159 |
| Avg. grade mill feed | g/t | 2.16 | 2.03 | 2.27 | 2.36 | 2.98 |
| Recovery | % | 92.97% | 93.47% | 95.18% | 94.78% | 93.19% |
| Gold inventory | oz | 2,596 | 1,980 | 4,634 | 4,339 | 11,000* |
Hummingbird said it maintained its 2021 production guidance of 100,000 – 110,000 oz of gold, with an AISC of $1,250-1,350 per oz on gold sold.
The company recorded net cash (including gold inventory value) of $4.9m (Q4 2020: $1.5m) with $8.6m debt repaid during Q1.
The outstanding $4.6m is expected to be paid during Q2 and will see Hummingbird free of debt in line with the company’s guidance expectations.
OPERATIONS
Hummingbird spent $2m during Q1 on exploration and the drilling programme continues.
A revised internal mineral resource estimate at Yanfolila was delivered as well as significant drilling results from Sanioumale East and Komana East deposits.
Hummingbird appointed Junction Contract Mining to take over the mining fleet and some 90% of the existing employees of the previous contractor. lmprovements in mining volumes have been seen.
At Kouroussa in Guinea, the miner received preliminary front end engineering design, infrastructure layout and capex estimates, which are being reviewed. Hummingbird is also awaiting the award of the mining licences.
Progress was made with ESIA studies; metallurgical holes are planned and geohydrology studies are underway to feed into the pit design.
Hummingbird also conducted sterilisation drilling to assist in positioning site infrastructure and geotech studies for the proposed plant site and main pit areas.
Key team members are being evaluated to take the project from pre-development phase to development phase, and Anthony Kocken was appointed chief operating officer for Kouroussa and Yanfolila.
During Q1, the company also released drilling results for Dugbe F deposit in Liberia and is awaiting a definitive feasibility study from Pasofino Gold Ltd.
SECURITY IN GUINEA
Hummingbird is evaluating security for its project in Guinea where the township of Kouroussa recently suffered civil unrest directed at government authorities.
The miner said it did not believe the environment currently posed any material risk to the project timelines and development plans.
Hummingbird is in constant contact with the government which, the company said, had repeated its support for the projects.