TIDMHUM
RNS Number : 1726T
Hummingbird Resources PLC
22 November 2021
Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector:
Mining
22 November 2021
Hummingbird Resources plc
("Hummingbird" or the "Company")
Updated Mineral Resource Estimates for the Dugbe Gold Project,
Libera
3.40 Moz in Measured & Indicated Mineral Resources, a 1 Moz
increase from the last MRE update
Hummingbird Resources plc (AIM: HUM) is pleased to announce
Pasofino Gold Ltd ("Pasofino") (TSXV: VEIN) has released an updated
Mineral Resource Estimates ("MRE") for the Dugbe F and Tuzon
deposits at the Dugbe Gold Project ("The Project") in Liberia. For
the full Pasofino release details and graphics, please follow the
link here .
Pasofino has an earn-in agreement for a 49% stake in the
Project, with Hummingbird maintaining a controlling interest of
51%. For further details on the option and earn-in agreement with
Pasofino, please refer to the Company's RNS dated 4 June 2020.
Highlights
-- Using a 1.0 g/t Au cut-off, the Measured and Indicated part
of the MRE model boasts 2.88 million ounces ("Moz") of gold
contained in 56.6 million tonnes ("Mt") grading 1.58 grams per
tonne ("g/t") Au in two deposits:
o Tuzon deposit : 40.2 Mt grading 1.64g/t Au containing 2.11 Moz
gold
o Dugbe F deposit : 16.5Mt grading 1.45g/t Au containing 0.77
Moz gold
-- This higher-grade material comprises the bulk of the MRE, and
selective processing of it should benefit the project economics
-- Reporting using the 0.5 g/t Au cut-off grade, which was used
for the previous (August 2020) MRE:
o An increase of 1.0 Moz gold in the Measured and Indicated
category
o Measured and Indicated tonnage is now 75.2 Mt grading 1.37 g/t
Au containing 3.31 Moz gold
o Plus, an Inferred tonnage of 14.9 Mt at 1.23 g/t Au containing
588 thousand ounces ("koz") gold
-- Using the lower 'marginal' cut-off grade (0.34 to 0.40 g/t
Au), the Total Measured and Indicated Mineral Resource inside of
the pit-shell is 81.2 Mt grading 1.30 g/t Au containing 3.40 Moz
gold
-- This has led to a Total MRE of 4.0 Moz (Measured, Indicated
and Inferred as detailed in Table 1 below)
-- There are clear opportunities to expand the MRE beyond the
pit-shell, increase grade and make new discoveries highlighted by
recent outcrop sampling returning up to 3.0 g/t on strike from
Tuzon and the 100+ targets on the over 2,500 Kilometre squared
("km(2) ") land package in Liberia
-- Taking advantage of the significantly increased Measured and
Indicated gold, DRA Global will now progress with the mine design
and Mineral Reserve Estimation for the Feasibility Study ("FS"),
which is on schedule for completion by the end of Q2 2022. It is
expected to benefit from the robust and flexible MRE
Dan Betts, CEO of Hummingbird Resources, commented:
"Pasofino's work to date demonstrates what we have always
believed, which is Dugbe is underpinned by a robust mineral
deposit. Of the total updated 4.0 Moz resource base, 3.4 Moz is in
the Measured and Indicated category, which is a significant uplift
on the previous MRE."
We are excited to see the results from the continuing DFS work
that Pasofino are doing as they complete the earn in requirements
of our JV agreement to earn a 49% interest in the Project. We are
increasingly confident that Dugbe has all the hallmarks of a
robust, large scale mine and remain very enthused by the upside
potential to expand the resource base. We continue to see Dugbe as
a very valuable asset within the Hummingbird portfolio which can
help us to drive value for our shareholders as that value becomes
more clearly articulated through the DFS work scheduled for
completion in Q2 2022."
Ian Stalker, CEO of Pasofino Gold Ltd, commented:
"We have achieved an updated Measured and Indicated Mineral
Resource Estimate (MRE) of 3.4 Moz of gold which is the main input
for the well-advanced Feasibility Study; of this, 2.88 Moz grading
1.58 g/t Au above a 1.0 g/t Au cut off provides an opportunity to
deliver higher grade ore to the plant and should have a knock-on
benefit on operating costs and capex, potentially without detriment
to planned annual production. It is also important to note that
there are avenues for further resource expansion and grade increase
which is exciting, and we plan to take advantage of these as we
work full speed to finalize the FS in early 2022."
Table 1: MRE for the Dugbe F and Tuzon deposits, with an
effective date 17 November 2021, using cut-off grade values defined
in the footnotes.
Subtotal above 0.5 Tonnage (Mt) Grade (Au g/t) Contained Gold (koz)
Au cut-off grade Classification
--------------------- ---------------------
Tuzon deposit Measured - - -
--------------------- ----------------- --------------------- ------------- --------------- ---------------------
Indicated 53.2 1.40 2,396
------------------------------------------------------------- ------------- --------------- ---------------------
Measured & Indicated 53.2 1.40 2,396
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 7.5 1.13 270
------------------------------------------------------------- ------------- --------------- ---------------------
Dugbe F deposit Measured 1.2 1.44 56
----------------- ---------------------
Indicated 20.8 1.28 860
------------------------------------------------------------- ------------- --------------- ---------------------
Measured & Indicated 22.1 1.29 916
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 7.4 1.34 317
------------------------------------------------------------- ------------- --------------- ---------------------
Subtotal Measured 1.2 1.44 56
================= ------------------------------------------- ------------- --------------- ---------------------
Indicated 74.0 1.37 3,256
-------------------------------------------------------------
Measured & Indicated 75.2 1.37 3,312
------------------------------------------------------------- ---------------------
Inferred 14.9 1.23 588
============================================================= ============= =============== =====================
Subtotal MRE for Tonnage (Mt) Grade (Au g/t) Contained Gold (koz)
material above
marginal cut-off
grade and below 0.5
g/t Au Classification
--------------------- ---------------------
Tuzon deposit Measured - - -
--------------------- ----------------- --------------------- ------------- --------------- ---------------------
Indicated 5.8 0.43 81
------------------------------------------------------------- ------------- --------------- ---------------------
Measured & Indicated 5.8 0.43 81
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 2.0 0.44 29
------------------------------------------------------------- ------------- --------------- ---------------------
Dugbe F deposit Measured - - -
----------------- ---------------------
Indicated 0.2 0.45 3
------------------------------------------------------------- ------------- --------------- ---------------------
Measured & Indicated 0.2 0.45 3
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 0.01 0.44 0.2
------------------------------------------------------------- ------------- --------------- ---------------------
Subtotal Measured - - -
================= --------------------- ------------- --------------- ---------------------
Indicated 6.0 0.43 84
------------------------------------------------------------- ------------- --------------- ---------------------
Measured & Indicated 6.0 0.43 84
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 2.1 0.44 29
============================================================= ============= =============== =====================
Total MRE - all Tuzon deposit Measured
material above the
marginal cut-off
grade
----------------- ---------------------
Indicated 59.0 1.31 2,477
------------------------------------------------------------- ------------- --------------- ---------------------
Measured + Indicated 59.0 1.31 2,477
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 9.5 0.98 300
------------------------------------------------------------- ------------- --------------- ---------------------
Dugbe F deposit Measured 1.2 - 56
----------------- ---------------------
Indicated 21.0 1.28 863
------------------------------------------------------------- ------------- --------------- ---------------------
Measured + Indicated 22.2 1.29 919
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 7.40 1.33 318
------------------------------------------------------------- ------------- --------------- ---------------------
Total Measured 1.2 - 56
================= ------------------------------------------- ------------- --------------- ---------------------
Indicated 80.0 1.30 3,340
------------------------------------------------------------- ------------- --------------- ---------------------
Measured + Indicated 81.2 1.30 3,396
------------------------------------------------------------- ------------- --------------- ---------------------
Inferred 16.9 1.13 617
============================================================= ============= =============== =====================
Notes
1. The effective date of the Mineral Resource Estimate is 17 November 2021
2. The marginal cut-off grades for Tuzon are 0.34 g/t Au for
fresh material and 0.39 g/t Au for weathered material. The marginal
cut-off grades for Dugbe F are 0.36 g/t Au for fresh material and
0.40 g/t Au for weathered material
3. Rounding errors may be evident when combining totals in the table but are immaterial
4. The Qualified Person is Mr. Martin Pittuck (CEng, MIMMM)
5. The Mineral Resource has been classified under the guidelines
of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council (2014), and procedures for
classifying the reported Mineral Resources were undertaken within
the context of the Canadian Securities Administrators National
Instrument 43-101 (NI 43-101)
6. Mineral Resources are not Mineral Reserves and have no
demonstrated economic viability. The estimate of Mineral Resources
may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues
7. Mineral Resource estimates are stated within conceptual pit
shells that have been used to define Reasonable Prospects for
Eventual Economic Extraction (RPEEE). The pit shells used the
following main parameters: (i) Au price of US$1700/ounce; (ii)
plant recovery of 90%; and (iii) mean specific gravity of 2.78
t/m3for fresh rock and 2.1 t/m3for oxide material
Clear opportunities for an increase in grade and size
The following opportunities are apparent from the MRE and recent
fieldwork:
-- The higher-grade domain at Tuzon can be followed for most of
the length of the deposit and may represent an opportunity for
preferential treatment of higher-grade material to maximise project
economics
-- Incorporation of internal barren/low-grade intervals into the
updated block model contributed to the lower grade than the 2020
estimates but was considered necessary for the Indicated
classification - infill drilling may allow some of these intervals
to be modelled and excluded from future MRE work, or at mining
stage and is, therefore, an opportunity to increase grade
-- Both deposits extend beyond the MRE pit shell and there is an
opportunity to expand the high-grade zone at Tuzon beyond its
current modelled extent. At Tuzon, the 'SE limb' in particular
needs further drilling to follow it. The last drill-hole on this
limb was TDC186 which intersected 17.3 metres ("m") with an average
grade of 2.70 g/t Au[1]
-- Potential to identify satellite deposits. At a new target on
strike from Tuzon, four rock-chip samples from outcrops returned
0.39, 0.72, 2.41 and 3.07 g/t Au. These were collected as part of
mapping to finalise the drill-hole location for a hole testing
trench TZTR091, which returned an interval of 36 m with an average
grade of 0.60 g/t Au 6 km to the southwest of Tuzon[2]
Drilling and MRE objectives achieved
The updates to the Dugbe F and Tuzon MREs utilised approximately
14,000 m of additional diamond core drilling completed in 2021,
adding to the 68,832 m drilled by Hummingbird Resources between
2009 and 2014. The objectives of the 2021 drilling were as
follows:
1. To support conversion of Inferred resources to Indicated particularly at Dugbe F
2. Initial testing of potential extensions of the mineralisation at Tuzon
3. Targeted holes to firm up on the geological model
4. To provide holes for geotechnical testwork and manual and
acoustic televiewer logging for the DFS pit-design
All four objectives were firmly achieved. At Dugbe F the infill
drilling converted most of the previous Inferred MRE to Indicated;
73% of the Dugbe F deposit is now in the Measured and Indicated
category. Drilling to test the extension of the 'SE limb' and 'main
fold hinge' at Tuzon was largely limited to 180 m beyond the
previous drilling to test the concept before further holes were
drilled. The work has shown that further drilling has the potential
to expand these parts of the deposit.
Geology of the deposits
The Tuzon and Dugbe F deposits are approximately 4 km apart. The
hosting mineralised layer at both is orthopyroxene gneiss with
increased sulphide (typically 0.1 to 1%) content (visible
pyrrhotite, arsenopyrite and pyrite). At Tuzon, the mineralised
layer is between 2 and approximately 100 m thick at the largest
fold hinge. At Tuzon, the mineralised layer has been folded into a
large synform plunging approximately 20 degrees southwest. The
synform was later refolded, notably by the 'F3' folds and so has
relatively complex geometry. At Dugbe F the layer is typically 5-10
m thick and gently southeast dipping, and flat to undulating. At
both Dugbe F and Tuzon the layer outcrops for most of the length of
the deposits. Two localised recumbent folds affect the mineralised
layer at Dugbe F causing repetition and thickening of the
mineralised layer. The deposits are cut by whitish younger granitic
bodies and pegmatites which are generally barren. These intrusions
are interpreted to be dominantly parallel with the F3 fold axial
planes forming semi-concordant moderately dipping sheets of varying
thickness. The base of the oxide zone at both deposits is shallow,
rarely more than 10-12 m below surface and there is little to no
transitional zone.
Qualified Persons Statement
The independent Qualified Person responsible for the Mineral
Resource Estimates at the Dugbe F and Tuzon deposits, is Mr. Martin
Pittuck, CEng, MIMMM, FGS and is a full-time employee with SRK
Consulting (UK) Ltd. By virtue of his education, professional
registration and experience, Mr. Pittuck is a Qualified Person for
the purpose of NI 43-101 reporting and is independent of Pasofino.
Mr. Pittuck consents to the content of this press release relating
to the Tuzon Mineral Resource Estimate.
Content in this disclosure that relates to exploration results
was prepared and approved by Mr. Andrew Pedley Pr. Sci. Nat FGSSA.
Mr. Pedley is a full-time consultant of Pasofino Gold Ltd.'s
wholly-owned subsidiary ARX Resources Limited. By virtue of his
education, professional registration and experience, Mr. Pedley is
a Qualified Person for the purpose of NI 43-101
About the Dugbe Gold Project
The 2,559 km(2) Dugbe Project is located in southern Liberia and
situated within the south westmost part of the Birimian Supergroup,
which is host to the majority of West African gold deposits. To
date, two gold deposits have been identified on the Project; Dugbe
F and Tuzon. Both deposits outcrop at surface and may be amenable
to open-cut mining. The deposits are located within 4 km of the
Dugbe Shear Zone which is thought to have played a role in large
scale gold mineralisation in the area. A large amount of
exploration in the area was conducted by Hummingbird including
74,497 m of diamond coring. 70,700 m of this was at the Dugbe F and
Tuzon deposits, discovered by Hummingbird in 2009 and 2011
respectively. In 2020 and 2021 Pasofino drilled a further 14,638 m
mostly at Dugbe F and Tuzon. Pasofino is well underway with a
definitive feasibility study for gold production from these
deposits. In addition, there are a number of gold targets within
the Project. In 2019, Hummingbird signed a 25-year Mineral
Development Agreement ("MDA") with the Government of Liberia
providing the necessary long-term framework and stabilisation of
taxes and duties. Under the terms of the MDA, the royalty rate on
gold production is 3%, the income tax rate payable is 25% (with
credit given for historic exploration expenditures), the fuel duty
is reduced by 50%, and the Government of Liberia is granted a free
carried interest of 10% in the Project.
**ENDS**
Notes to Editors:
Hummingbird Resources (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold production, development and exploration
Company, member of the World Gold Council and founding member of
Single Mine Origin (www.singlemineorigin.com). The Company
currently has two core gold projects, the operational Yanfolila
Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which
will more than double current gold production when in operation,
scheduled for first gold pour end of Q2 2023. Further, the Company
has a controlling interest in the Dugbe Gold Project in Liberia
that is being developed by Pasofino Gold Limited through an earn-in
agreement. Our vision is to continue to grow our asset base,
producing profitable ounces, while central to all we do being our
Environmental, Social & Governance ('ESG') policies and
practices.
For further information please visit www. Hummingbird or contact:
Daniel Betts, CEO Hummingbird Resources plc Tel: +44 (0) 20 7409 6660
Thomas Hill, FD
Anthony Kocken, COO
Edward Montgomery, CSO & ESG
James Spinney Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Ritchie Balmer Nominated Adviser
-------------------------- ----------------------------
James Asensio Canaccord Genuity Limited Tel: +44 (0) 20 7523 8000
Thomas Diehl Broker
-------------------------- ----------------------------
Bobby Morse Buchanan Tel: +44 (0) 20 7466 5000
Ariadna Peretz Financial PR/IR Email: HUM@buchanan.uk.com
James Husband
-------------------------- ----------------------------
[1] Pasofino Gold announcement dated 18(th) August 2021
[2] Pasofino Gold announcement dated 18(th) May 2021
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