Hummingbird Resources PLC (LON:HUM) saw its shares rise on Monday on news it has started the exploration drilling campaign on its mining permit in Mali.
In a statement, the AIM-listed company said that the new drilling is targeting conversion of resources to reserves, extending the life of the Yanfolila gold mine.
WATCH: Hummingbird Resources achieves commercial production at Yanfolila
It added that four rigs are on site and will be drilling over 50,000 metres across six existing deposits on the mining permit.
Murray Paterson, Hummingbird’s VP Geology commented: "The drilling is aiming primarily for the conversion of existing Resources to Reserves targeting an expected extension to Yanfolila's mine life.
“We have a number of mineable deposits already proven up as Resources and this programme is about converting those ounces into the mine plan for Yanfolila.”
The firm also said the underground study for Komana East, which is below the open pit Yanfolila, shows potential for an economic underground mine with 113,000 ounces of producible gold in addition to the existing mine plan.
In early afternoon trading, Hummingbird shares were 6.5% higher at 32.5p.