Making the most of declining junior miners
Miners are underperforming gold despite getting support from the stock market.
Hummingbird Resources (AIM: HUM) has announced the start of the hot commissioning phase at the Kouroussa gold mine in Guinea. The next step is first gold pour, which the company expects within this quarter.
Phase one of testing the processing plant’s mechanical, electrical and overall functionality has performed per design, allowing next phase hot commissioning to begin, the West Africa-focused gold producer said in a statement. First ore was introduced to the 1-million-tonne-per-annum plant at Kouroussa on May 20, 2023.
“While commissioning of the plant continues and nears its final stages, our operations team is preparing Kouroussa to become fully operational with the intention to reach commercial and name plate production in the second half of 2023,” CEO Dan Betts said in a news release.
Kouroussa represents one of two core projects under Hummingbird’s portfolio, the other being the Yanfolila gold mine in Mali, which poured its first gold in 2017. The company acquired the Kouroussa project from Cassidy Gold in September 2020.
The Kouroussa project comprises two key deposits as well as several exploration targets. The current mineral reserve is estimated at 647,000 ounces of gold at a grade of 4.15 grams per tonne.
According a technical report, the Kouroussa mine is forecast to produce an average of 100,000 oz. per annum over an initial seven-year life. It has a net present value of $210 million with an internal rate of return of 71%.
