Hummingbird Resources, an AIM-listed mining contractor, has announced that its Yanfolila gold mine project located in Mali is on schedule and it is set to start pre-production mining in the third quarter of 2017. The mining company also added that it has already received a ball mill from Europe and the mining contractor’s staff have already arrived at the mine site.
Set for gold mine production
Hummingbird Resources Chief Executive Officer Dan Betts said that the delivery of the ball mine was crucial for the success of the project, and now that the company has received it, the Yanfolila project is poised for full-scale production, with pre-production set to begin sometime in the third quarter.
Beaufort mining analysts stated that they are confident about the construction of the Yanfolila project and its timeframe. Based on information revealed by the mining contractor, the analysts said that the project is on schedule and well within its budget.
The analysts also stated that pre-production mining at Yanfolila is set for the third quarter of 2017, and once production begins, the mine will have an estimated operating cost of about US$695 per ounce. The company will be extracting close to 132,000 ounces of gold in the first year of production.
Funding played a role
That had been doubts as to whether Hummingbird Resources would be able to meet its pre-production schedule. However, those doubts were laid to rest after the mining contractor secured a US$60 million debt facility from Coris Bank, a lender that focuses on investments in the West African region.
The company’s investors have already invested US$71 million for the construction of the Yanfolila mine. It is estimated that the mine contains close to 1.8 million ounces of gold. Based on the available information, Hummingbird Resources will be extracting its first gold pour before the end of 2017.