16th Apr 2019 10:46
LONDON (Alliance News) - Hummingbird Resources Ltd on Tuesday reported an increase in quarterly gold production, however mining rates fell due to problems in both the Komana East and Komana West pits.
In the three months to the end of March, the Yanfolila mine in Mali poured 23,807 ounces of gold at an average grade mill feed of 2.46 grams per tonne.
In the prior quarter to the end of December, the mine produced 17,895 ounces at 1.91 grams per tonne of gold.
Gold sold for the period totalled 23,333 ounces at an average price of USD1,291 per ounce, up from 20,850 ounces at a price of USD1,221 per ounce the quarter before.
However, Hummingbird's ore mined fell to 262,317 tonnes from 340,867 tonnes the prior quarter. This was due to remediation work on the Komana East pit during the period, as well as ore depletion in Komana West.
Despite the increase in production, plant throughput and the grades mined were lower than expected due to the limited supply of softer oxide ore to blend with the harder fresh ore, as well as plant availability, Hummingbird said.
In addition, due to lower mining volumes, the company is yet to access certain areas of higher grade ore than were anticipated to be processed during the first quarter of 2019.
Looking ahead, Hummingbird believes production guidance for 2019 of 110,000 to 125,000 ounces is still achievable, but all-in sustaining cost may exceed the target range of USD800 to USD850 per ounce.
"The period under review has seen the company resume mining to plan, following a period of remediation work on the pit wall, with a quarter on quarter increase in production of 33%. In the period, production was impacted by ore depletion from the Komana West pit from historical artisanal workings, which was greater than forecast in the reserve model," said Chief Executive Dan Betts.
"We are taking immediate steps to reverse the impact of this dilution through working closely with the mine contractor and as we progress deeper in the pits the impact of this is expected to reduce significantly in the near term as we access areas of expected higher-grade ore," Betts added.
Shares in Hummingbird Resources were down 10% at 18.12 pence on Tuesday.
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