27th Feb 2015 10:04
LONDON (Alliance News) - Hummingbird Resources PLC Friday posted a widened loss for its first half as it continued to focus on developing a mine at the Yanfolila gold project in Mali, which it acquired from Gold Fields Ltd last July.
In the half year to end-November 2014, the company posted a pretax loss of USD3.0 million, widened from a pretax loss of USD1.5 million a year before, as it incurred higher administrative expenses. It is not yet revenue producing.
Hummingbird said the Yanfolila project has a current 1.8 million ounces gold inventory, at an average 2.8 grams per tonne of gold. Since it acquired the project, Hummingbird has completed 13,853 meters of resource drilling, 542 meters of geotechnical drilling, 1,136 meters hydrological drilling and 707 meters of metallurgical drilling.
It said results from this drilling have further reinforced its confidence in the project's prospects as a low-cost, high-grade project.
It is currently conducting an optimisation study at the project, results of which are "imminent". It expects construction of the mine to take a year, leading to first gold production in the first half of 2016.
Shares in Hummingbird are trading down 3.1% at 35.62 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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