Aim-listed Hummingbird Resources says TSX-listed Pasofino Gold has released an independent preliminary economic assessment (PEA) for the Dugbe gold project, which shows significant production potential – laying the groundwork for ‘a new gold district.

The PEA was prepared by DRA Projects, a wholly owned subsidiary of DRA Global as a lead consultant and assisted by SRK Consulting and Epoch Resources.

Pasofino has an acquisition agreement for a 49% stake in the project, with Hummingbird retaining a controlling 51% stake.

The PEA plans to operate at five million tonnes per year producing approximately 2.5 million ounces of gold over a 14-year mine life (LoM).

Average annual steady-state gold production is estimated to be approximately 188,000 ounces, with peak production of approximately 226,000 ounces in the eighth year of operation.

The PEA has a pre-tax net present value (NPV) of $ 825 million and an internal rate of return of 34% at a gold price of $ 1,600 / oz.

There is also a pre-tax NPV of $ 1.15 billion at a gold price of $ 1,800 / oz.

The PEA shows a rapid return on investment of approximately 2.9 years from the start of production.

LoM cash flow is expected to be $ 627 million and all-in sustaining costs of LoM to $ 893 / oz.

The PEA shows low electricity costs of $ 0.18 / kWh, with opportunities for long-term savings with alternative sources.

Additionally, it indicates significant community support built over the project’s ten-year history.

Approximately $ 391 million in pre-production capital is required to develop the project.

Much of the 2,599 km² all of the land is prospective. Pasofino has new drilling targets in the pipeline following intensive surface exploration work undertaken over the past six months.

Ongoing positive drilling results at Dugbe F and Tuzon will be included in updated mineral resource estimates planned for July and August.

Ongoing tests are underway at ALS Perth, Australia, which is seeking to improve metallurgical recoveries.

“We have always believed in the fundamental value of the Dugbe project and the enormous exploration potential at the district level.

“The recently released positive drill results at the Dugbe F and Tuzon deposits highlight the exploration potential underway, as well as the strong PEA of Pasofino, with a NPV of over $ 800 million and upside potential over time. and as exploration drilling takes place.

“This PEA highlights the material value and potential of the project and its ability not only to be the mine that we have long envisioned, but also to become the next gold district in West Africa,” said the CEO. by Hummingbird. Dan Betts said.