Kouroussa commercial production delayed beyond Q1 2024 target

Hummingbird said today that commercial production at its Kouroussa gold mine will be delayed beyond its Q1 2024 target following the suspension of mining activities by Corica Mining Services.

Hummingbird shares lost value at the onset of the news that Corica was withdrawing its services on 15 March, falling from 11p/share to 5.72p/share today.

Corica halted mining operations at the Guinea mine on March 17. Hummingbird said at the time that the suspension of operations was a "clear breach of the mining contract".

The cessation of activity is linked to a dispute over monies owed.

"Hummingbird has been actively seeking to address the ongoing situation by engaging in discussions with Corica, alternative and additional mining contractors, suppliers, and the company's primary lender, Coris Bank International," the company said.

It added that the supporting mining contractor continues to operate, with the processing plant processing ore together with stockpiled material. 

"Resolution to the current situation will allow the upcoming blast to proceed, which is expected to provide access to higher-grade ore necessary to achieve commercial production," the company added.