Images showing the new road and one of 24 bridges constructed
Aim-listed Hummingbird Resources notes that TSX-listed Pasofino Gold has released an update for the Dugbe gold project in Liberia, with a feasibility study scheduled for completion in April.
Hummingbird has a controlling interest in Dugbe, which is being developed by Pasofino under the terms of an earn-in agreement.
Confidence has been achieved with the feasibility study work confirming gold recoveries of between 85% and 91%, depending on whether a straight carbon-in-leach (CIL) or CIL with flotation circuit is selected.
Current trade-offs are aimed at the selection of the optimal process to achieve the best financial outcomes.
Open pittable resources include 57-million tonnes of material, grading 1.58 g/t with 2.88-million ounces of gold.
Pasofino intends to prioritise the extraction of this higher-grade component of the overall resource to support a higher head grade during the early years of production.
Favourable results from the on-site geotechnical work should allow steeper pit slopes to be developed, which should translate to lower strip ratios.
Mining dilution has decreased to an average of 8.7% from 10% in the 2021 preliminary economic assessment (PEA).
Energy costs have dropped from $0.212/kWh to $0.172/kWh. This anticipated benefit is expected to result in lower energy cost per tonne treated.
All other disciplines are well advanced, with the feasibility study more than 70% complete.
The environmental- and social-impact assessment scope has been approved by the Liberian Environmental Protection Agency.
A comprehensive biodiversity fieldwork has identified areas of lower sensitivity enabling the location of key project infrastructure, reducing environmental impact. Continuous community engagement has been undertaken throughout the development of the project.
Updated results show continual strong progress towards delivering an economically robust feasibility study, as highlighted by the PEA released in June 2021.
Hummingbird notes that post completion of the feasibility study in April and, subject to satisfying certain conditions in the earn-in agreement, Pasofino is on track to earn a 49% interest in the project (prior to the issuance of the government of Liberia’s 10% carried interest).
Further, the company notes that Pasofino has indicated that, once the 49% earn-in is completed, it intends to exercise its right under the earn-in agreement to acquire 100% ownership of the project by exchanging Hummingbird’s 51% controlling interest in the project for a 51% controlling interest in Pasofino.
This exchange is subject to certain conditions and receipt of all required approvals, including the approval from the TSX