Project: Dugbe 1 Project
| Context map |
Dugbe Shear Zone |
3.8m oz Resource and surrounding prospects |
Dugbe 1 cross section Tuzon line 640N |
Dugbe 1 cross section Joe Village line 920N |
The Dugbe Shear Zone area consists of 2,000km² in central eastern Liberia, lying some 40km northeast of the coastal town of Greenville. The Dugbe 1 Project is underlain by Birimian geology, making it highly prospective for gold, and is currently Hummingbird’s most advanced project, with over 61,000m of drilling and a 3.8 Moz gold resource. Hummingbird released on 8th April 2013 a Preliminary Economic Assessment on the Project. On an owner operated mine of 3.5Mtpa the project has an NPV of $337m and an IRR of 43%. Initial Capex is $212m with payback in 3 years with average production over 20 year LOM of 125,000oz.
The gold zone is hosted in sheared quartz biotite pyroxene schist within a garnet bearing alteration halo. The geological model is a 3km long, continuous gold zone ranging in thickness from 5m to 40m, with the thickest zone outcropping at surface and pinching and swelling along strike as well as downdip. The gold zone strikes northeast and for the most part dips at 25-30 degrees to the southeast, with the southern part of the zone dipping shallow to the south and the area between Anomalies B and C dipping shallow to the northeast. The change in dip suggests a gentle open folding of the gold zone following the foliation trend.
Hummingbird is now moving towards a DFS. An infill drill programme started in January 2013 and is ongoing. EPC/EPCM contractors are currently being appointed to lead the DFS.
Project status
Highlights
- 3,817,000oz Au Resource
- Consistent and even distribution of gold grades
- Deposit is near surface, likely to have low waste: ore strip ratio on commencement of mining
- Gradual increase in grades and decrease in tonnage with increased cut off grades
- Full team of geologists on site