LONDON (ShareCast) - (ShareCast News) - West Africa-focused gold developer Hummingbird Resources was brimming with confidence on Monday, releasing updated economic projections for its Yanifolia Gold Project in Mali.
The AIM-traded company said at a gold price of $1,100 per ounce, there would be a 24% increase in its net present value to $109m, and its internal rate of return would increase from 37% to 42%.

Hummingbird's all-in sustaining costs were reduced at the price by $34 per ounce to $686 per ounce, and its reserve at that price increased by 44,200 ounces.

At a gold price of $1,250, the resource would have a net present value of $162m, and internal rate of return of 60% and an all-in sustaining cost of $695 per ounce.

"When we published our DFS in January we said at the time that we were in the process of optimising the mine schedule based on the maiden Reserves from December 2015. I am very pleased to be able to announce these results which bore out the improvements we anticipated," said CEO Dan Betts.

He said an all-in sustaining cost of under $700 per ounce and a 42% internal rate of return at an $1,100 gold price marked Yanfolila as one of the highest margin, undeveloped gold projects in Africa.

"These much improved project economics have left the company in a better position to negotiate the final funding package for the development of Yanfolila to production and the recently secured six month bridge extension to 8 September 2016 has given us the time to do this," Betts concluded.

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