Hummingbird Resources Update

22 January 2013
Hummingbird Resources Update

Hummingbird Resources plc - Operational Update and Interim Results

Hummingbird Resources, the Liberian gold explorer with a 3.8 Mozgold Resource, announces interim results for the six months ended 30November 2012 and an operational update.

Financial Highlights for the period, and post period

  • Total funding in place for 2013 of US$26m
  • Announced IFC's proposed investment of £3m, its first investment in the mining sector in Liberia, completed post period in December 2012
  • Signed a 2% NSR royalty agreement with Anglo Pacific for US$15m in December 2012

Operational Highlights for the period

  • A third gold discovery within the primary project area; Sackor is 2.1km south-west of the Dugbe F gold deposit
  • The completion of a 32 hole geostatistical diamond drill program across Dugbe F and Tuzon has provided valuable geostatistical and geotechnical information for incorporation in the Scoping Study and for planning of the 2013 drill program

2013 Activity

  • 2013 infill drill programme has commenced, initially on the Tuzon deposit, for the purpose of increasing the definition of the existing Resource
  • Completion of Scoping Study expected Q1 2013
    • Metallurgical test results, announced today, show a potential gold recovery of over 90% at Dugbe F and 88% at Tuzon, with maximum recoveries of 98% and 98.9% respectively
  • Ongoing exploration programmes to further define project pipeline

Dan Betts, CEO of Hummingbird, commented:

"With the Scoping Study near completion, and the Company being fully funded for 2013, Hummingbird made significant steps in H2 2012. The results of the metallurgical test work undertaken for the study to date have increased our confidence that we have an economic gold discovery in Liberia with a large resource. In addition, in the six months under review we made our third gold discovery in the primary project area which covers just a fraction of our total acreage.

"Importantly, we have secured significant funding, with minimal dilution to shareholders from two highly regarded partners which materially de-risk our business in Liberia. Firstly, IFC have made their first investment in the mining sector in Liberia via Hummingbird, offering not only an endorsement of our project, but of the political environment in the country; and secondly our new partners at Anglo Pacific, who will only see a return on their investment once our first mine is in production. We are fully funded for 2013, which will see a significant amount of drilling at Dugbe 1, to drive the project towards pre-feasibility. In parallel we will continue our earlier stage exploration, which will focus on identifying additional regional and near project exploration targets. Our strategic focus is to fast-track towards an initial mine founded on Dugbe 1's 3.8Moz gold Resource. We are confident that in 2013, Hummingbird will make major strides towards its aim of building a gold mine in Liberia.