The possibility that Liberia's jungles could yield a mother lode as exciting as the Klondike gold rush has sustained investor interest in Hummingbird Resources (HUM). The company has consistently upgraded its resources estimates this year; exploitable gold reserves now total 3.82 million ounces after a spate of discoveries within its 7,000 kilometres concession in eastern Liberia. However, whether Hummingbird successfully turns itself from an explorer to a fully-fledged producer will depend on the political situation in West Africa and the gold price staying above $1,000/oz.
Completing the transformation to producer will take time and cash, so a $5m injection from the International Finance Corporation, a division of the World Bank, in return for 5.7 per cent of the company will go some way towards turning the Dugbe F and Tuzon deposits into a working mine. The high presence of gold in surface soil down to a depth of 40 metres means the area is suitable for cheaper open pit mining and should offset the relatively low grade of ore. Operationally, these developments are still some way off and the rest of this year will be taken up with proving the feasibility of the whole Dugbe 1 project.