West African gold explorer and developer Hummingbird Resources has signed a collaboration agreement with global infrastructure fund IFC InfraVentures and international energy company Aldwych to plan and develop a 20MW to 30MW hydroelectric power (HEP) plant in south-east Liberia.
The generated power from the HEP plant will supply low-cost power to the AIM-listed company’s 4.2 million ounce Dugbe 1 Gold project.
Hummingbird Resources's mine is located 40 miles from the deep water port of Greenville, which is 10km away from the HEP plant, local media The Inquirer reported.
Hummingbird Resources CEO Dan Betts said: "This collaboration represents an extremely exciting opportunity for Hummingbird, working together with two highly regarded partners. . .to develop a sustainable source of power for Dugbe 1 and to secure the future domestic power supply for the southeast Liberia region and the town of Greenville, in particular.”
Conducting a prefeasibility study
The IFC has fully funded a prefeasibility study (PFS) conducted by international Knight Piésold Consulting, which will examine the technical and economic viability of the HEP project.
The Inquirer reported that the two-phase PFS will involve:
- preliminary engineering, a draft PFS report and the installation of stream gauge and flow monitoring equipment
- one year of flow rate recording, stream gauge maintenance, hydrological analysis and the final PFS report
The PFS is expected to reach completion in April 2016 at a cost of $265,000.
In addition, Hummingbird continues to work at its Yanfolila gold project in Mali, a low cost, high grade open pit mining operation with the first gold production set for Q1 of 2016.
“Having just raised $8.9-million on top of our $75-million debt facility with Taurus, mine construction at Yanfolila is due to start imminently with first production targeted for the first half of 2016,” Betts concluded.