Hummingbird Resources PLC (LON:HUM) said first concrete had been poured on time and on budget at the Yanfolila gold mine project in Mali.
Civil contractor IMAGRI-SARL, which has worked for Randgold Reosurces (LON:RSS), poured the concrete, which will provide the base for the plant, and pours will continue over the next three months.
Several other long-lead equipment orders have been placed, such as for screens and crushers.
Hummingbird has committed US$12mln of the budget and remains on budget and schedule for the construction of the Yanfolila mine.
Chief executive Dan Betts told investors: "The first concrete pour is a significant milestone on our path to production and we remain on schedule for our first gold pour by the end of next year."
In addition, the compensation process to 50 farmers for loss of croplands has been completed.
Yanfolila boasts impressive fundamentals. The group is targeting 132,000 ounces of gold for the first full year of production, which would deliver around US$70 million of free cash flow at a US$1,250/oz gold price.
On its initial eight year mine life, Yanfolila has an IRR (internal rate of return) of 60% and a net present value (NPV) of US$162 million at a gold price of US$1,250 per ounce.