Pasofino Gold, which owns 100% of the world class Dugbe Gold project in Liberia, notes an announcement made on 21st December 2023 by its majority shareholder, Hummingbird Resources.
In the announcement Hummingbird Resources updated the market on its own proposed Share Placement, which Hummingbird expected to close on 10th January 2024. Pasofino notes, in particular, the following statement made by Hummingbird Resources:
“Approximately US$2 million of the proceeds will be dedicated to progressing the Dugbe gold project in Liberia, bringing this highly valuable asset closer to production. The funds will be used to optimise the 2022 DFS through FY-2024 and further progress the project.
“Hummingbird Resources and Pasofino Gold have identified several opportunities to maximise the value of Dugbe and reduce the overall project capex profile, including the optimisation of power usage, improvements to the metallurgical recovery rates and additional exploration activities.”
“The dedication of these funds to the Dugbe gold project by Hummingbird Resources enables us to progress with the development of the project and the maximization of its value. We are currently evaluating a new drill program to extend the Tuzon mineralization along with possible additional exploration targets previously identified.
Furthermore, we also have identified a number of opportunities to optimize the FS which was completed during COVID with challenges incurred during that time.”
Hummingbird Resources’ commitment is subject to Hummingbird receiving all required regulatory, shareholder and other approvals and is subject to Pasofino and Hummingbird agreeing on the commercial terms with Hummingbird and Pasofino obtaining all necessary approvals, including the approval of the TSXV.
Gold mining in Liberia has been a significant economic activity contributing to the country’s growth and development.
Liberia, located in West Africa, possesses rich deposits of gold, attracting both local and international mining companies. The country’s gold reserves are primarily found in the greenstone belts of the Man Craton.
The ASM sector plays a crucial role in Liberia’s gold production, employing a significant portion of the population.
However, ASM often faces issues related to environmental degradation, unsafe working conditions, and lack of proper regulation.
Efforts to formalize and regulate the ASM sector have been ongoing to ensure sustainable mining practices and improve the livelihoods of local communities.
The government, in collaboration with international organizations, has implemented initiatives aimed at providing training, access to finance, and technical support to small-scale miners.
Despite the challenges, Liberia’s gold mining sector holds potential for growth and development, contributing to the country’s economy while balancing environmental conservation and social welfare concerns.
Continued efforts towards responsible mining practices and effective regulation are crucial for the sustainable development of the gold mining industry in Liberia.