Hummingbird Resources Ltd (LON:HUM) told investors that the Yanfolila mine, in Mali, remains on track and on budget, to deliver first gold by the end of the 2017.
The mine developer, in a statement, reported that the construction phase of the project was around 86% complete at the end of the third quarter.
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At the close of the three month period, ended September 30, the company had US$56mln cash.
In the quarterly activity report the company also noted corporate highlights, including the conditional acquisition of a 50% stake in the Kobada gold project – which could feed a high-grade gold concentrate to Yanfolila, potentially adding some 50,000 ounces of production per year.
"We are now in the final quarter of the year and remain on track, and budget, to deliver first gold by the end of the 2017,” said Dan Betts, Hummingbird chief executive.
"We have had a positive last quarter, on top of great construction progress, we announced a commitment to enter into an agreement with African Gold Group to develop their Kobada gold project to the north of Yanfolila.
“Whilst this deal is subject to satisfactory due diligence over the coming months, we believe this project will show a compelling economic case to produce a concentrated product to truck to our Yanfolila plant.
READ: Hummingbird Resources Mali mine is on time and on budget for first gold pour later this year
“We believe this will materially increase both the annual production output and the life of the mine at a similar operational cost.”
Betts added: “Post period end, Hummingbird also saw the successful IPO and funding of Cora Gold, which is set to develop exploration licences in Mali. Hummingbird was the previous owner of a number of the permits and holds a 34% shareholding in the company.”