22nd Jul 2014 08:52
LONDON (Alliance News) - Hummingbird Resources PLC Tuesday said it has appointed SENET Ltd of South Africa to start engineering work on the Yanfolila processing plant and associated infrastructure in Mali.
The gold and silver mining company said SENET has agreed to start engineering services under the letter of intent between the two parties until a full contract has been drafted and accepted by both parties, allowing Hummingbird to continue its fast-track development plan.
"After a competitive tender process, where we received expressions of interest from a number of globally recognised consultancies, we are very pleased to have appointed SENET as consultant for our Yanfolila project," Chief Executive Dan Betts said in a statement.
"They have extensive experience in West Africa, as well as over three years working on the Yanfolila project for Gold Fields before Hummingbird acquired it, and will complement our Project Development team very well," Betts added.
In June, Hummingbird entered into a deal with Gold Fields Ltd to acquire all of Gold Fields' mining and exploration interests in Mali, including the Yanfolila project, for USD20 million in shares.
The Yanfolila site has a current mineral inventory of 1.8 million ounces of gold at 2.8 grams per tonne of gold, and Hummingbird's plan is to deliver first gold production by the end of 2015 at an estimated all-in sustaining cost of USD700 per ounce, with 80,000 ounces targeted in first year production.
The company said in June that it expects a project independent rate of return at 53% and payback in under two years, based on a gold price of USD1,250.
Hummingbird Resources shares were up 1.0% to 51.50 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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