Mining operations at Yanfolila will be based on conventional drill-and-blast, load and haul mining methods, initially from two deposits. Mining is due to commence in the third quarter of 2017, with first gold to be poured before the end of the year.

AMS expects to incur capital expenditures of approximately $38 million for the acquisition of new equipment for mining at Yanfolila and plans to employ approximately 450 personnel to carry out the contract. The Yanfolila definitive feasibility study calls for production of an average of 107,000 ounces per year (oz/y) of gold over an eight-year mine life, including 132,000 oz in the first full year of production. Plant throughput is planned at 1.24 million metric tons per year (mt/y) at a life of mine average grade of 2.95 g/mt gold.

Capital expenditures prior to startup are estimated at $79 million. All-in sustaining costs of production are estimated at $695/oz, placing the project in the lowest quartile of African producers. Imagri S.A.R.L has the contract for construction of the Hummingbird processing plant. Work under the contract includes the run-of-mine tip and crusher, the secondary crusher and screen, and the milling and carbon-in-leach areas.

The Yanfolila project has probable reserves of 709,800 oz of gold at a grade of 3.14 g/mt and total resources inclusive of reserves of 1.8 million oz at a grade of 2.54 g/mt, plus an additional 390,700 oz of non-compliant exploration potential. Hummingbird Resources CEO Dan Betts said, “Appointing AMS as our mining contractor is a major milestone for Hummingbird and represents the single largest contract the company will award. AMS has an excellent reputation for high-quality work, with an exemplary health and safety record. The team also boasts over 25 years’ experience operating in West Africa. I am delighted to embark on this partnership with AMS.”