HUMMINGBIRD Resources has signed a 25-year mineral development agreement (MDA) with the Liberian government which sets down the economic terms for the potential development of the firm’s 4.2 million ounce Dugbe deposit.
Daniel Betts, CEO of Hummingbird, said in a statement on May 1 that whilst the company’s focus is on its Yanfolila mine in Mali “… the significance and scale of this asset is not to be underestimated”.
The MDA provides for a 15-year stabilisation of duties and taxes due were Dugbe developed, as well as a 10% free-carry stake in the project to the government and an upfront $1.5m payment, described as an “initial signature bonus”.
The MDA is the first to be signed with the Liberian government following a discovery in over 10 years. Exploration of some three years of Dugbe as been planned.
Hummingbird said on April 15 that it was getting back on track following heavy rains last year that led to the collapse of a pit wall at Yanfolila – a downpour that also swept a bridge away.
The company poured 23,807 oz of gold in the first quarter of 2019, an increase of about 33% on the fourth quarter’s gold pour. The average mill feed grade also came in higher at 2.46 grams per ton (Q4: 1.91 g/t). As a result of higher grade and production all-in sustaining costs (AISC) fell 23% to $1,297 per ounce from $1,677/oz previously.
