Hydro-electric-power offers golden solution to Hummingbird energy costs

PLANS to install a hydro-electric power plant next to a West African gold mine are feasible, the mineral extraction firm owning the site has confirmed.

Birmingham-registered Hummingbird Resources said a pre-feasibility study had identified that a power plant next to its Dugbe gold project in Liberia was not only possible, but if operational, would reduce energy costs for the mine.

The study, funded by IFC InfraVentures and carried out by Knight Piésold, took 14 months to complete.

“Importantly, the HEP plant offers the potential to reduce the all in sustaining costs of the Dugbe Gold Project,” said Hummingbird in an update to the markets.

Dan Betts, CEO of Hummingbird Resources, said that as the largest gold deposit in Liberia, with a net present value of $186m (based on a $1,300 gold price), the firm was keen to progress the idea.

“We are keen to move the Project (mine) forward towards development and the delivery of the hydro power PFS is a tangible deliverable in this process,” he said.

“The PFS has assessed the various options for a hydro-electric power plant 10km from our Dugbe Gold Project, which could provide significant savings to our overall power cost, but also has the potential to provide surplus power to the local region.   

“Power costs make up over a third of our total process Opex at Dugbe and finding savings in this area will have positive implications to the Project’s economics.”

He added that assuming a suitable financing solution was found, the HEP plant could have a “materially positive impact” on the economics of the Dugbe Gold Project.

Hummingbird will now discuss the various options for the plant with its partners before deciding on its next move.

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