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In the news: Hummingbird Resources & Weatherly International

Published: 05:32 20 Oct 2016 EDT

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FROM THE BROKING DESK

Just last week Hummingbird Resources announced the start of civil works at its Yanfolila Gold Project in Mali. Now there’s some further news on progress. Land compensation has been completed, long-lead items (eg, crushing circuit equipment and agitators) have been ordered and concrete has started to pour. Dan Betts and his team are not hanging about. Progress is shown in the picture below, and if you require video evidence please click here.

The company remains on schedule and on budget for first gold pour by the end of next year. The first full year of operation should see 132,000oz of gold produced, with very attractive projected life-of-mine AISC of just US$695/oz gold produced, with very attractive projected life-of-mine AISC of just US$695/oz (at a gold price of US$1,250/oz). That puts Yanfolila’s costs firmly in the lowest quartile of African producers

COMPANIES

WEATHERLY INTERNATIONAL

LON:WTI | 0.3p | US$3.6m | Speculative Buy | TP : 1.2p
Quarterly Operations and Production Update
Weatherly International has announced its update for the quarter ended 30 September 2016. Production came to 3,641t of copper cathode, 14% below nameplate, with the drop off in run-rate being attributed to increased levels of groundwater inflow relative to the range accounted for in the feasibility study. As a result, costs for the quarter rose to US$5,073/t; they are expected to fall back to the US$4,100-4,200/t range in FY17, when the company expects production to return to design levels of 17,000tpa.
COMMENT: We understand that the company has upgraded the in-pit groundwater management systems and is looking to finish a number of de-watering boreholes in and around the pit. Mining has since resumed; this could lead to production reaching nameplate levels as early as the end of the current quarter.
Despite this slight setback over the last two quarters, it is worth highlighting Tschudi’s overall strong operating performance previous to the water issues of the last two quarters, with the average C1 cost figure for the nine-month period of US$4,199/t having surpassed the guidance range of US$4,250-4,350/t. The company has guided towards competitive LT C1 costs for Tschudi of US$3,865/t; meanwhile, the previous March 2016 quarter beat FY16 cost guidance, with 4,442t of copper cathode produced at just US$3,429/t.

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