In a 2Q21 update, Hummingbird Resources (HUM ) has maintained its full-year guidance after reporting higher gold production and lower costs at the Yanfolila mine in Mali.
The multi-jurisdiction gold exploration firm said gold poured rose to 24,494 ounces in the quarter to June 2021 from 22,781 ounces in the prior 1Q21 period at the Yanfolila mine.
All-in sustaining costs were slashed to US$1,386 per oz for 1Q21 from US$1,494 in 1Q21 which the Group said reflects new cost and productivity improvement initiatives at Yanfolila.
Net cash, which includes gold inventory value rose to $12.4m from $4.9m in 1Q21 with $4.7m of final debt repayments made, taking the Company into a debt free position.
Dan Betts, Hummingbird’s CEO, said, "Q2 saw steady improvements in terms of gold ounces poured and lower AISC at Yanfolila when compared to Q1 2021. Additionally, the Company has achieved a major milestone by paying off the final debt used to fund Yanfolila, which will now better allow the mine to generate cash flows to fund our future growth plans.”
As a result of its performance, Hummingbird said it maintains its 2021 production guidance of 100,000 - 110,000 oz of gold, with an AISC of US$1,250 - 1,350 per oz of gold.
Hummingbird added that full year production is expected to be weighted towards the second half of the year in line with its guidance expectations at the start of the year.
The Group said material progress at Yanfolila had continued in 2Q21 with around $3.5m spent on the mines exploration during the quarter, with around 32,500 metres ('m') of the 44,600 m forecast for the year drilled to date (vs around 21,000 m drilled back in 2020).
In particular, two drilling releases during the quarter highlighted significant results at the Sanioumale East ('SE') deposit. Earlier this month, Hummingbird reported positive results from its 2021 drilling campaign at the Sanioumale East ('SE') deposit which the Company said was representative of “some of the very best intersections” it has seen at Yanfolila yet.
“We are still due a significant number of results back from the labs which we are keenly anticipating, with the expectation of adding further mine life to Yanfollila,” said Betts.
To date, the Group has experienced mineralisation being delineated down to 150m below surface, with the mineralisation ‘remaining open and continuing with good grades,’ it said.
To date, the Group said results continue to provide further confidence that the Company will build on the 2020 SE deposit JORC compliant mineral resource base of 204,000 ounce.
Currently, multiple assays are awaiting results from the labs in Bamako and the Company anticipates being able to release more drilling results during 3Q21. In addition, the Company said it remains on track to release an updated - reserve statement later this year and that in future, it will look to release a joint resource and reserve update annually from H1 2022.
At Kouroussa in Guinea, capex estimates are being finalised to enable the firm to complete key work streams, including an agreement on a financing strategy for construction.
Hummingbird also said that it has seen ongoing positive drilling results in 2Q21 at Dugbe's two key deposits Dugbe F and Tuzon, showing upside potential to the PEA economic.
"Operational performance is central to our objectives this year, and under the leadership of our new COO, we are implementing a number of processes and protocols aimed at cost reduction and productivity improvements across the business,” added Betts.
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Due to the success of the 2020 exploration and drilling programme, the Sanioumale East ('SE') deposit has become a major focus of the Company's 2021 resource growth strategy.
The firm told investors earlier this month that it expects to release further drilling results from its 2021 drilling campaign ‘in the coming months’ once further assays have been received.
The previous 2020 drilling programme showed that the mineralisation was not closed off, continued deeper into the fresh rock and further along strike than previously interpreted.
The planned 2021 drill programme has been designed to add new resources by testing the strike extensions and following up at depth high grade intersections. Further field investigations, geophysical data analysis,and revisions to the deposit's model are also being carried out to assist with future drill hole planning for further resource growth, it noted.
Back in April 2021, Hummingbird said production levels during the 1Q21 were in-line with forecast projections. It also added that it expected 2021 production to pick up in 2Q21.
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