Modern Mining June 2019

MINING News

Hummingbird prepares updated LoM plan for Yanfolila early estimates from the LoM plan show a significant improvement on production levels and a lowering of the cost base of the mine. From 2023 the average annual production from reserves reduces to 80 000 oz per year.

In its final audited results for the period ended 31 December 2018, AIM-listed Hummingbird Resources – which owns and operates the Yanfolila gold mine in Mali – says that following the success- ful 2018 exploration drilling campaign, it is currently updating its reserve and resource statements which are due shortly. Additionally, the second ball mill currently being installed at Yanfolila is due for com- pletion in Q3-2019. Both of these factors have meant Hummingbird is currently updating its Life of Mine (LoM) plan. At present, this was last forecast as part of the DFS in 2016 and showed that Yanfolila would aver- age 107 000 oz of gold production per year. The current draft LoM plan, awaiting finalisation, indicates that in the upcom- ing three years (2020-2022), the company is able to achieve production of 130 000- 145 000 oz per year at a targeted AISC of US$800/oz. The company reports that the

mine successfully ramped up to full-scale production in Q1-2018, displaying both the operational efficiency of the mine and positive cash flows for the subsequent quarters,” he states. “Notwithstanding our successes during the period, the Group also faced opera- tional setbacks in Mali. Heavy rainfall, which led to potential pit wall instability issues, and a damaged public bridge on the only road to site certainly tested us. From the board to the operations team on the ground, we were all faced with a com- plex challenge. The fact that we recovered from this within such a short space of time is a real testament to the team’s hard work.” Betts notes that the 2018 exploration campaign has brought excellent drilling results across Yanfolila’s 2,2 Moz gold base and says the company is optimistic that it will allow it to increase cumulative gold production over the mine life. “Particularly strong results came from Gonka, a deposit located just 5 km from the process plant, where mineral-rich intercepts included 15 m at 16,03 g/t and 18 m at 9,39 g/t,” he says. “Such high- grade potential has made us even more confident in our long-term plans for the mine and the potential for underground developments. “What is more, the period saw the commencement of the construction of a second ball mill, which will increase plant throughput and align with these new dis- coveries. The second mill will boost plant capacity from 1,24 Mt/a to 1,4 Mt/a when processing a blend of ore, and from 1 Mt/a to 1,24 Mt/a when processing 100 % fresh ore. The circa US$13million capex project is expected to complete during Q3-2019 and will significantly enhance our throughput capacity with an estimated 24 % increase above original design.”  with the help of highly experienced external exploration consultants, have completed a detailed geophysical survey and exten- sive soil sampling programme which has yielded some excellent results indicating that we may have a number of high-poten- tial prospects within our Zamsort licence. “We have generated a large number of drilling targets from the data and geological models and beginning with Cheyeza, one of our highest-priority targets.” 

Hummingbird intends to announce the results of scoping studies on both the Gonka deposit and undergroundmining at Komana East (currently an operating open pit). The studies will, when converted to reserves following feasibility study com- pletion, augment the existing reserves to increase annual production and extend the mine life further. Based on current resources, over 1 Moz of gold sits outside of reserves. In his CEO’s statement accompanying the audited results, Dan Betts says that 2018 proved to be a period dominated by key milestones and operational chal- lenges. “After pouring first gold to plan on 19 December 2017, the Yanfolila gold

Installing the motor for Yanfolila’s second ball mill (photo: Hummingbird Resources).

Drilling starts on Arc Minerals' Copperbelt properties AIM-listed Arc Minerals has begun an initial 7 500-m drilling programme at its Zamsort/Zaco copper projects located in the Zambian Copperbelt, adjacent to world- class operating copper mines.

programme is designed to test the large Cheyeza anomaly as well as the Lumbeta and Muswema targets in addition to other tar- gets generated through the comprehensive geophysical and soil sampling programme. “We are very excited about this drill- ing programme,” says Nick von Schirnding, Executive Chairman of Arc Minerals. “Over the past year, our technical team,

Arc Minerals has appointed a local drill- ing contractor with significant experience in the Copperbelt and two diamond drill rigs have commenced drilling. The drilling

10  MODERN MINING  June 2019