Hummingbird Resources plc warned of delayed commercial production at its Kouroussa mine where operations are still on hold following disputes with its mining contractor.
BLASTING
Corica Mining Services stopped work on 17 March at the Guinea mine in a dispute over contracts including pay.
Hummingbird today said it had been in discussions with Corica, alternative and additional mining contractors, suppliers, and its own primary lender, Coris Bank International.
The ongoing talks focus on restarting mining at Kouroussa as soon as possible and “outline a path towards achieving sustainable commercial production levels”.
“As a consequence of the current significantly reduced mining activity, achieving commercial production will be delayed beyond our Q1 2024 target, until full mining capacity is restored onsite,” added the company.
“In the meantime, the supporting mining contractor continues to operate, with the processing plant processing this 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 said it was confident of reaching a “constructive resolution in the near term” with discussions focused on “various scenarios and initiatives”.