15th Jul 2013 07:00
MDM Engineering Group Limited
("MDM" or the "Company")
Appointed as DFS and FEED lead consultants for Hummingbird Resources Plc's Dugbe 1 Project, Liberia
MDM Engineering Group Limited (AIM: MDM) the minerals process and project management company focused on the mining industry, is pleased to announce that it has received a Letter of Intent to complete the Detailed Feasibility Study ("DFS") and Front End Engineering and Design ("FEED") for Hummingbird Resources PLC (AIM: HUM) Dugbe 1 Project in Liberia (the "Project").
The Dugbe Shear Zone area consists of 2,000km² in central eastern Liberia, lying some 40km northeast of the coastal town of Greenville. The Project is underlain by Birimian geology, making it highly prospective for gold, and is currently HUM's most advanced project, with over 61,000m of drilling and a 3.8 million ounce gold Resource.
In order to expedite the timeframe of mine construction, the FEED will be conducted alongside the DFS, allowing the company to proceed directly to an engineering, procurement and construction contract at the end of the DFS. HUM anticipates the conclusion of the DFS and FEED by the end of Q3 2014.
George Bennett, MDM Executive Director said:
"MDM is very pleased to have been awarded the DFS and FEED for the Dugbe 1 Project in Liberia. Our team's extensive gold experience in West Africa, which includes completing over 40 gold Bankable and Definitive Feasibility Studies, as well as the construction of over 30 gold plants, will add significant value to Hummingbird Resources. We look forward to a successful working relationship."
Enquiries:
MDM Engineering Group LimitedMartin Smith (CEO) Tel: +27 11 993-4300
George Bennett (Executive Director) Canaccord Genuity Limited Tel: +44 (0)20 7523 8000
Andrew Chubb / Joe Weaving
Tavistock Communications Tel: +44 (0) 207 920 3150
Jos Simson / Emily Fenton
KEY INFORMATION:
MDM:
MDM Engineering Group Limited is a minerals process and project management company focused on the mining industry. The Company provides a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning. To date, the Company's clients have largely been junior and mid-tier mining corporations with operations in Africa.
The MDM Engineering core technical team has a 24 year track record of completing a wide range of studies and execution projects across a variety of minerals, including precious metals, base metals, ferrous and non-ferrous metals, uranium and diamonds.
The Company has adopted an approach to project execution based on an open-book Engineering, Procurement, and Construction Management "EPCM" or "cost-plus" basis and on a Engineering, Procurement and Construct (EPC) basis. With a core focus on Africa, MDM Engineering is setting the benchmark standard for best practice in the mining services industry through its commitment to providing the highest quality services and actively engaging with clients to ensure maximum transparency.
For more information, please visit www.mdm-engineering.com
Hummingbird Resources:
Hummingbird Resources plc is an AIM quoted mineral exploration and development company incorporated in England and Wales and headquartered in London. Since its establishment in November 2005, the Company and its subsidiaries (the "Group") has been active in Liberia, West Africa, and is currently the holder of the largest area of mineral exploration ground in the highly prospective Birimian geological region of eastern Liberia. The Group's total Inferred Resource is 3,835,000 ounces of gold. The Group has published a PEA on its project showing for a 3.5Mtpa tank leach operations an NPV of US$337m with a Capex of US$212m and an IRR of 43.4%. This gives a payback period of 3 years and is based on a 10% discount rate and US$1,500 gold price (three year average gold price at time of release).
The Group has published a NI43-101 compliant Inferred Resource on its Dugbe F deposit of 43.01 million tonnes at 1.28 g/t Au to give 1,764,000 ounces of gold using a lower cut-off grade of 0.5 g/t Au and no upper cut-off grade. In addition, the Group has declared an Inferred Resource on its Tuzon project of 51.1 million tonnes at 1.26 g/t Au to give 2,071,000 ounces gold using a lower cut-off grade of 0.5 g/t Au and an upper cut-off grade of 7.0 g/t Au. Tuzon lies 2.6km to the east of the Dugbe F deposit. Exploration is being carried out to best industry practices.
In 2013 the Group is moving the Dugbe 1 Project towards feasibility and is currently infill drilling its existing Resources as well as continued regional exploration work.
The Group currently holds exploration licences covering approximately 7,000 square kilometres in total, which constitutes a significant proportion of eastern Liberia containing the Birimian sequence.
for more information, please visit www.hummingbirdresources.co.uk
Related Shares:
Hummingbird Resources