Project: Liberia

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Dugbe Shear Zone
Over 4 Moz Resource
and surrounding prospects
Dugbe Gold cross section
Section Line 7700mN
Dugbe Gold cross section
Section Line 7940mN

Dugbe Gold Project

The Dugbe Shear Zone is located in the South-East of Liberia and Dugbe lies 40 miles by road from the deep water port of Greenville, the County capital. The Dugbe Gold Project (“Dugbe”) is located within the Dugbe Shear Zone and crosses the Company’s Dugbe and Joe Village Licences. Dugbe is made up of 3 discoveries (Dugbe F, Tuzon and Sackor) with a defined Resource of 4.2Moz gold across the deposits.

Resources

The Dugbe F deposit has a 1.76Moz gold Resource while 2.6km to its east is Tuzon, with a 2.47Moz gold Resource. Sackor, 2.1km West of Dugbe F, is the site of economic mineralisation discovered from a 3, 727m drill programme in 2012 but does not yet have a defined Resource. For more details on Resources please refer to the press release from 12th March 2014.

US$1,500 - March 2014

Tonnage (Kt) Au (g/t) Au (Koz)
Indicated 41,800 1.51 2,031
Inferred 10,201 1.32 435
Total 52,001 1.47 2,466

US$1,200 - March 2014

Tonnage (Kt) Au (g/t) Au (Koz)
Indicated 37,400 1.56 1,879
Inferred 4,965 1.52 244
Total 42,365 1.56 2,123

Dugbe F (WAI): March 2013

Tonnage (Kt) Au (g/t) Au (Koz)
Indicated
Inferred 43,000 1.28 1,760
Total 43,000 1.28 1,760

Preliminary Economic Assessment (“PEA”)

In April 2013, the Company announced the results of the Preliminary Economic Assessment on the Dugbe Gold Project. The report concluded that the Dugbe Gold Project is and remains robust from a technical and economic perspective, with a financial model over the 20 year life of mine producing an NPV (post tax, 10%) of US$337 million and an IRR of 43.4% using a US$1,500 gold price. At a US$1,300 gold price the economics are still very robust with an IRR of 29.4% and an NPV of US$186m. The PEA was carried out over both the Dugbe F and Tuzon deposits. For more details on the PEA please refer to the press release from the 8th April 2013.

Detailed Feasibility Study (“DFS”)

As a result of the positive PEA, the Company is carrying out a DFS on the Dugbe Gold Project, which is currently underway.

MDM Engineering Group have been appointed to run the DFS and are being assisted by SRK Consulting as resource consultants, Coffey Mining for geotechnical studies and AMEC for Environmental and Social Impact Assessment (“ESIA”). The DFS is undergoing optimisation which includes bringing ore from Dugbe F into the first 10 years of mine life. The Company is looking forward to announcing the results of the DFS once all of the necessary studies have been completed.

For more details on progress of the DFS please refer to Operational Update press releases in the ’News’ tab of the website.

Mineral Development Agreement (“MDA”)

  • 25 year MDA Agreement with the GoL with option to extend by mutual consent
  • Provides necessary long-term framework and stabilisation of taxes and duties
  • Agreed royalty rate on gold production of 3%
  • Income Tax rate of 25%, with credit given for historic exploration expenditures
  • Fuel duty reduced by 50% (75% for first five years of production if gold price is below US$1,500)
  • GoL to be granted free carried interest of 10% in the Dugbe Gold Project
  • Signed through the Company’s wholly owned subsidiary Hummingbird Resources (Liberia) Inc
  • Community Development Fund to be established by the Company

Birimian Gold Province

The Birimian is the world’s second largest gold producing region and fastest growing gold producing region, characterised by large, low-grade deposits. Before Hummingbird’s arrival, the Birimian was completely unproven in Liberia.

The Birimian gold province in West Africa is home to several of the largest gold deposits and mines in the world. The most notable of these mines is Obuasi in southern Ghana, which has reserves of over 40 million ounces, but there are dozens of other mines across the region with multi-million ounce reserves. In mining terms, the Birimian is elephant country.

Hummingbird Resources has a clear strategy of focussing on exploring greenstone contacts in the Birimian and maximising the existing potential of making multiple significant gold discoveries within its targeted land package of 2,300 square kilometres in eastern Liberia - the last major remaining unexplored region of the Birimian.

Team spotlight

Murray Paterson

Murray Paterson
VP Geology

Murray has over 20 years’ experience as a mine (OP & UG), mineral resource & exploration geologist. Specialising in international assignments at new or start-up operations in multi commodities (Cu-Ur, Pb-Zn-Ag, Au, & W). He worked as a high level manager, geological and mining systems consultant, an exploration (Gold porphyry systems and IRGS) and mine geologist. Global Mapper and Surfer for all geological data integration and presentation.

Meet the whole team