Hummingbird study shows solid case for hydropower use at Liberia project

JOHANNESBURG (miningweekly.com) – A recently completed prefeasibility study (PFS) at Liberia-focused miner Hummingbird Resources’ Dugbe gold project, has confirmed the viability of a range of options for hydroelectric power (HEP) plant use in supplying a sustainable source of power for Dugbe, as well as the south-east Liberian region.

The 14-month study also showed that hydropower could potentially reduce the 4.2-million-ounce project’s all-in sustaining costs.

CEO Dan Betts said that as the largest gold deposit in Liberia, with a $186-million net profit value at a $1 300/oz gold price, the company was keen to move the project forward to development.

“The delivery of the hydropower PFS is a tangible deliverable in this process. Power costs make up over a third of our total process operational expenditure (opex) and finding savings in this area will have positive implications for the project’s economics,” he added.

Hummingbird used estimates of $0.28c/kWh for rented diesel power in the PFS. “Taking the total capital expenditure and opex for the HEP plant, over the current 20-year mine life, gives you a theoretical cost of $0.05c/kWh.

“This number does not compare directly, since it does not include the impact of the financing cost of building the hydro plant, as it is not yet known how this will be done or by whom.

“However, assuming a suitable financing solution was found, this could have a materially positive impact on the economics of the Dugbe project.  Therefore, we are now considering our next steps with our partners on the PFS,” Betts said.