Annual Report 2012
“Gold things come to those who wait”
Basil De Tent
Hummingbird Overview
Opening Highlights
Chairman’s Statement
CEO’s Statement
Board of Directors
Technical & Operational Review
Technical Summary
Core Values
Operational Summary
Corporate Social Responsibility
Pygmy Hippo Foundation
Liberia
Financial Statements
Directors’ Report
Corporate Governance Report
Directors’ Responsibilities Statement
Independent Auditor’s Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Company Balance Sheet
Company Statement of Cash Flows
Company Statement of Changes in Equity
Notes to the Company Financial Statements
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Hummingbird
Overview
03
Operating Highlights
Chairman’s Statement
CEO’s Statement
Board of Directors
0oz
May 2010
812,000oz
December 2010
Financials
Year end cash balance:
US$15.5 million
August 2012: IFC
proposed investment of
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investment in the mining
sector in Liberia
1,765,000oz
September 2011
3,817,000oz
February 2012
Opening
Highlights
Discovering, proving and developing
world class mineral deposits in Liberia
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Development
Exploration
Liberia
“Dugbe 1” Project
(cid:19)(cid:16)(cid:15)(cid:19)(cid:6)(cid:20)(cid:15)(cid:17)(cid:11)(cid:15)(cid:20)(cid:6)
Total Resource increased
to 3,817,000 oz gold
including:
Re-election of President
Ellen Johnson Sirleaf for a
second six year term
July 2012: appointment
of Dr Julian Barnes as
consultant Head of
Project Development
and augmentation of
Hummingbird’s technical
(cid:13)(cid:15)(cid:19)(cid:7)(cid:6)(cid:21)(cid:8)(cid:13)(cid:14)(cid:6)(cid:18)(cid:8)(cid:22)(cid:11)(cid:8)(cid:17)(cid:23)(cid:19)(cid:11)(cid:13)(cid:6)
development skills
Work underway to
produce a Preliminary
Economic Assessment
(“PEA”) on the Dugbe 1
Project during 2012
Sept 2011: Dugbe F
Resource upgraded to
1,765,000 oz gold (1.4
Moz Indicated, 0.4 Moz
Inferred)
Feb 2012: Tuzon Maiden
Resource of 2,052,000
oz gold announced (all
Inferred)
July 2012: Sackor gold
discovery from diamond
core drill results (resource
modeling in progress)
July 2012: Tiehnpo and
Nemo Creek gold-in-soil
discoveries – largest to
date
The mining sector
increased its share of the
country’s GDP to 6.6%, up
from 1.1% in 2010
Three operating deep-
water ports, new roads
and railways currently
being built. World Bank
invested US$250 million
into the country in 2011
September 2011,
ArcelorMittal began
mining, processing and
shipping iron ore from the
Nimba project
Chairman’s
Statement
Strategy
On behalf of the Board of Directors, I am pleased to present Hummingbird
Resources plc’s Annual Report for the year ended 31 May 2012. This year marks
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It has been a fascinating and exciting year which has seen great developments
and change across the entire landscape in which our business operates.
Geologically, Hummingbird has again made staggering progress. Politically,
the re-election of President Ellen Johnson-Sirleaf for a second term is testament
to the success of and support for the democratic programme she initiated in
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watchdog. Financially, the world has continued upon its downward trajectory of
spiralling uncertainty, causing Hummingbird (and every other mining company
on the planet) much food for thought!
Technical Progress
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announced the doubling of our Maiden Resource, discovered just prior to IPO
at the Dugbe F deposit, to 1,765,000 Moz of gold. In February of this year we
more than doubled the project’s Resource base again to 3,817,000 Moz, with the
announcement of a Maiden Resource at Tuzon only 2.5km east of Dugbe F. As
you can see from the graph opposite, this rate of growth gives Hummingbird the
fastest growing Resource amongst its peers during the year. This gold was added
at an all-inclusive discovery cost of US$6/oz, which also makes Hummingbird one
of the most cost effective and value for money explorers globally over the last
year.
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of regional target generation through exploration work that has resulted in some
30,000 geo-chemical soil samples being taken across our Dugbe Shear Zone and
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took a total of 36,000 samples.
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additional targets which we believe prove that Hummingbird has under its
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mines. At the top of this project pyramid our third discovery, Sackor, was drilled
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same conceptual mine development area as the Dugbe F and Tuzon Resources.
This success has brought with it a number of welcome challenges, namely being
how do we capitalise on this vast opportunity in a focused manner?
Our solution is two-fold. First and foremost we have committed to the evaluation
of ‘The Dugbe 1 Project’ with the aim to prove that these ounces are not only
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our inventory.
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We will continue to explore the rest of our land package outside of the Dugbe
Shear Zone, whilst maintaining an open mind to opportunities to create
meaningful shareholder value from these licences via potential deals that will
enable us to focus our energies on the expanding opportunities across the
Dugbe Shear Zone.
At Mount Ginka, our joint venture iron ore project in Nimba County, we will be
looking at ways to monetise the asset during the coming year.
Political Developments
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developing at a rapid pace and the re-election of Ellen Johnson-Sirleaf should
be seen as a sure sign that the democratic process in the country is working
well. Liberia is making good progress by all measures of economic growth and
is proving to be highly successful at encouraging foreign direct investment. We
are proud that Hummingbird has been able to play its part in this process by
securing the International Finance Corporation (“IFC” - part of the World Bank
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a ringing endorsement of the country’s improving investment climate, and of
the Company’s prospects. Many major resource companies operate in the
country and the Liberian government remains committed to the development
of the extractive industries. In Hummingbird we have the potential to build one
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milestone for the country and one that Liberia is determined to support during
this Presidential term.
The Global Market
Hummingbird has seen a great number of successes this year, from a large
increase in its Resource base to early stage discoveries with huge potential, and
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much all companies in the resource space and we have suffered the same fate
as many others.
Gold remained relatively level over the last 12 months but still remains strong. With
so many uncertainties across the global markets there are very few who would
bet against gold not rising over the coming year. Indeed, gold seems currently
range bound, due mainly to political rather than supply-demand factors, and
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anticipate continued volatility in the gold market. However, because people are
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hungry world, and because of man’s thirst for gold over many millennia, I would
argue the case for gold maintaining a “stronger for longer” scenario rather than
a weakening one. For a company such as Hummingbird that has a growing asset
base this can only be a positive development.
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09
The Coming Year
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ahead looks as uncertain as I can remember, and the divergence between gold
stocks and underlying commodity prices is as dislocated as at any time in living
memory. What does this mean for Hummingbird and our shareholders?
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Feasibility Study and to begin developing the mine. We have already
commenced, and are encouraged by several technical studies, to determine
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project.
In addition, we will continue with a regional exploration programme to identify
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Hummingbird controls an area with the potential to deliver multiple mines. It is
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development of the mine in the shortest period possible.
In conclusion I would like to note that I signed off last year’s Annual Report
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perspective and see this journey through as I believe we are set for great
things”. Well, I can only repeat the same remarks but with a greater degree of
certainty in the value of Hummingbird’s underlying assets and its fantastic ability
to deliver. Thank you for your support as shareholders and I’m sure you will join
me in acknowledging the contribution made by my fellow non-executive board
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their tireless work.
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Ian Cockerill
Chairman
CEO’s
Statement
At our IPO in December 2010 we had a proven 812,000 oz gold Resource and
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Maiden Resource, then doubled it again. This is a fantastic achievement by any
standard.
Hummingbird’s current Resource of 3.8 Moz gold is all within a single project,
it all lies at or near surface and has been discovered at a staggeringly low
cost. Furthermore, we have a swelling pipeline of targets which has expanded
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ever. Hummingbird is no longer an explorer with a promise, it is a company with
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forging the way not just to a mine, but to a whole new mining district.
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on our goal of discovering, proving and developing a gold mining industry in
eastern Liberia, then the value of the business will eventually be recognised.
I am extremely proud of the dedication and talent of the entire Hummingbird
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now fully equipped with the necessary skills for our next stage of development.
Hummingbird’s job is to deliver on our long-term strategic goals.
Strategy
Our promises at IPO can be distilled into the following two-year mission:
1. (cid:26)(cid:7)(cid:5)(cid:9)(cid:16)(cid:7)(cid:28)(cid:4)(cid:5)(cid:2)(cid:3)(cid:10)(cid:2)(cid:5)(cid:7)(cid:18)(cid:16)(cid:5)(cid:129)(cid:10)(cid:21)(cid:20)(cid:4)(cid:11)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:5)(cid:3)(cid:10)(cid:20)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:9)(cid:7)(cid:2)(cid:4)(cid:11)(cid:2)(cid:21)(cid:10)(cid:19)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:22)(cid:16)(cid:7)(cid:27)(cid:2)(cid:3)
2. To develop the regional capacity of our licence package over the Dugbe
Shear Zone to show that it has the potential to host multiple gold mines
3. (cid:26)(cid:7)(cid:5)[(cid:12)(cid:5)(cid:10)(cid:11)(cid:5)(cid:10)(cid:4)(cid:16)(cid:7)(cid:8)(cid:10)(cid:22)(cid:11)(cid:4)(cid:2)(cid:21)(cid:24)(cid:5)(cid:14)(cid:18)(cid:16)(cid:28)(cid:4)(cid:12)(cid:5)(cid:7)(cid:28)(cid:4)(cid:16)(cid:5)(cid:7)(cid:18)(cid:16)(cid:5)(cid:129)(cid:2)(cid:5)](cid:21)(cid:11)*(cid:10)(cid:5)(cid:21)(cid:16)(cid:7)(cid:11)(cid:5)(cid:7)(cid:16)(cid:4)(cid:5)(cid:19)(cid:21)(cid:24)(cid:4)(cid:11)(cid:24)(cid:4)(cid:30)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)
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produce a saleable concentrate from this project
4. To continue systematic exploration over all of our other licences and thereby
move them up the value curve
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_~(cid:5)(cid:8)(cid:7)(cid:11)(cid:2)(cid:3)(cid:14)(cid:5)(cid:7)(cid:11)(cid:30)(cid:5)(cid:27)(cid:4)(cid:5)(cid:10)(cid:16)(cid:4)(cid:5)(cid:9)(cid:16)(cid:7)(cid:18)(cid:20)(cid:5)(cid:2)(cid:3)(cid:10)(cid:2)(cid:5)(cid:27)(cid:4)(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)(cid:8)(cid:7)(cid:16)(cid:4)(cid:5)(cid:2)(cid:3)(cid:10)(cid:11)(cid:5)(cid:17)(cid:18)(cid:19)(cid:15)(cid:19)(cid:19)(cid:4)(cid:20)(cid:5)(cid:2)(cid:3)(cid:4)(cid:14)(cid:4)(cid:5)(cid:9)(cid:16)(cid:7)(cid:8)(cid:21)(cid:14)(cid:4)(cid:14)(cid:130)
Put simply, this year we have taken US$17 million and turned it into additional
gold resources of over 3 Moz. I believe this fact goes a long way to satisfying our
(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:7)(cid:23)#(cid:4)(cid:24)(cid:2)(cid:21)(cid:28)(cid:4)(cid:131)(cid:5)
(cid:2)(cid:3) Our current global Resource stands at 3.8 Moz gold
(cid:2)(cid:3) All our current gold Resource lies within two deposits within the radius of one
future mining operation
(cid:2)(cid:3) We have made a third discovery with positive drill intersections at our ‘Sackor’
target
(cid:2)(cid:3) Resource optimisation to minimise our capital expenditure (“capex”) and
maximise our internal rate of return (“IRR”) is being undertaken by the newly
assembled development team
Hummingbird’s achievements during the last year go much further than the
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additional value can be created and this year alone we have taken over 30,000
geo-chemical samples, continuously generating targets, and we have drilled just
under 28,000 metres of diamond core.
The above graph shows how the Hummingbird team have continued to make
improvements to their in-country operations and driven down the cost of
sampling.
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West Joe Village, Tiehnpo and Nemo Creek. These targets are all currently being
trenched and could be drill ready by early next year. As you can see from the
map on page 16 these targets are each of a scale equal to the Dugbe 1 Project
area.
Away from gold, on our joint venture iron ore project at Mt Ginka we completed
a helicopter-borne aeromagnetic survey. A total of 1,650 line kilometres were
[(cid:7)(cid:27)(cid:11)(cid:5)(cid:7)(cid:28)(cid:4)(cid:16)(cid:5)(cid:10)(cid:2)(cid:5)(cid:133)~(cid:8)(cid:5)(cid:14)(cid:9)(cid:10)(cid:24)(cid:21)(cid:11)(cid:22)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:10)(cid:2)(cid:5)(cid:10)(cid:11)(cid:5)(cid:10)(cid:19)(cid:2)(cid:21)(cid:2)(cid:18)(cid:20)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)‘~(cid:5)(cid:2)(cid:7)(cid:5)>~(cid:8)(cid:25)(cid:5)(cid:26)(cid:3)(cid:4)(cid:5)(cid:20)(cid:4)(cid:2)(cid:10)(cid:21)(cid:19)(cid:4)(cid:20)(cid:5)
(cid:21)(cid:11)(cid:2)(cid:4)(cid:16)(cid:9)(cid:16)(cid:4)(cid:2)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:14)(cid:3)(cid:7)(cid:27)(cid:14)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:30)(cid:5)(cid:14)(cid:2)(cid:16)(cid:21)*(cid:4)^(cid:24)(cid:7)(cid:11)(cid:2)(cid:21)(cid:11)(cid:18)(cid:7)(cid:18)(cid:14)(cid:5)X(cid:7)(cid:11)(cid:4)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:10)(cid:5)(cid:14)(cid:2)(cid:16)(cid:7)(cid:11)(cid:22)(cid:5)(cid:8)(cid:10)(cid:22)(cid:11)(cid:4)(cid:2)(cid:21)(cid:24)(cid:5)
response. We drilled 1,058m over 6 holes and conducted a number of
metallurgical test work programmes which concluded that we can make a
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we will be looking to capitalise on this progress during the coming year.
So, what next for Hummingbird, and how does this success translate into tangible
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quickly, and overnight people begin to ask questions beyond “how much more
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resource is announced, the market seeks to wrap economics around the
discovery in order to see how the potential mine ‘ranks’ in the global order. This is
entirely understandable, but the truth is that concrete answers to these questions
lie in the results of technical studies which take both time and detailed analysis in
order to maximise the potential economics of the mine.
These studies are well advanced and Hummingbird will soon be in a position to
release the results of this work. This should be a crucial step towards proving the
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such a set of skills in such a short time. Whilst the results will shortly be forthcoming,
I would like to take this opportunity to address the two areas of our project which
seem to have raised the most questions:
Grade
As can be seen from the graph opposite, Dugbe 1 is absolutely consistent with
a realistic peer group of bulk tonnage open cast mines around the world. In
fact, in a recent study of 409 of the world’s gold deposits of more than 1 Moz,
the average grade of production was 1.06 g/t (almost 30% below our maiden
grade) and the average grade of all deposits (including those that are not yet
producing) was 0.66 g/t (50% below our grade). Moreover, grade should not be
seen in isolation but as one element in complex equation.
The other two key elements to that equation are the cost of extracting the
ore from the earth (determined largely by the strip ratio) and the cost of
extracting the gold from the ore (the processing costs, determined largely by the
metallurgical complexity of the ore body). At Dugbe 1 we have a near surface,
shallow dipping ore body indicating that a low strip ratio is likely. Preliminary
metallurgical test work has given excellent recoveries of up to 93%.
It is our belief that the key to building a mine with a robust IRR and low capex
actually lies within the existing Resource. We are currently building our case
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equation where our hand is the strongest.
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of the Dugbe 1 Project, Hummingbird has been building its technical capacity
and I am delighted that Dr Julian Barnes has joined the Company as Head of
Project Development as a consultant. Julian’s experience is second-to-none,
and includes over 15 years in West Africa. He co-founded the Resource Service
Group (“RSG”), was Executive Vice President of Dundee Precious Metals Inc, and
is currently a director of Serbia-focused Avala Resources Ltd. We have also been
able to attract additional world class talent with skills in the various disciplines
of mine evaluation and development to make this project a reality, and it is a
privilege to be working with them at Hummingbird.
Dugbe 1 Theoretical Mine Concept
Financial Risk
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K(cid:18)(cid:22)(cid:23)(cid:4)(cid:5)W(cid:5);(cid:16)(cid:7)#(cid:4)(cid:24)(cid:2)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:2)(cid:3)(cid:4)(cid:11)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:18)(cid:21)(cid:19)(cid:20)(cid:5)(cid:10)(cid:5)(cid:8)(cid:21)(cid:11)(cid:4)(cid:5)(cid:21)(cid:11)(cid:5)(cid:14)(cid:18)(cid:24)(cid:3)(cid:5)(cid:20)(cid:21)(cid:17)(cid:15)(cid:24)(cid:18)(cid:19)(cid:2)(cid:5)(cid:24)(cid:10)(cid:9)(cid:21)(cid:2)(cid:10)(cid:19)(cid:5)(cid:8)(cid:10)(cid:16)*(cid:4)(cid:2)(cid:14)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:7)(cid:18)(cid:2)(cid:5)
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the market to shy away from your stock and I am sure this has been the case to a
degree with Hummingbird during 2012. We have found an impressive Resource,
so the assumption is that we will need an impressive amount of money to
develop it.
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investment in the mining sector in Liberia. This gives Hummingbird a resounding
political and technical endorsement from a globally recognised and respected
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largest that we are aware of in the junior gold space and the dilution has been
limited to protect shareholder value as much as possible. It is our intention to
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Study (“DFS”) on the Dugbe 1 Project and further exploration through non-
equity based transactions in order to minimise dilution wherever possible. This is
especially important in the current economic climate where the Board sees a
stark discrepancy between the value of the underlying business and the cost of
issuing equity in the capital markets.
Opposite, Hummingbird’s project pyramid clearly illustrates how many prospects
we have and how they are progressing up the exploration pipeline.
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number of HUM shareholders, increasing the base to nearly 1,200. We have also
grown our retail exposure to provide the company with a stronger shareholder
platform in the long term.
This growth has not yet translated into more volume and stability in the market,
but market conditions are anomalous and this storm needs to be seen out before
the true value of this increased shareholder base can be realised.
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Looking Forward
Our strategy this year is clear. It is to prove beyond doubt that the Dugbe 1
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Resource growth potential within that project itself. We will rapidly progress the
development of this project through the various feasibility studies that will result
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of our Resource. We will also continue our systematic exploration of The Dugbe
Shear Zone with the aim of developing our Resource bank and becoming the
industry leader amongst African explorers. We have the skills, we have the targets
and we have the operational platform to do just that.
(cid:6)(cid:10)(cid:9)(cid:21)(cid:2)(cid:10)(cid:19)(cid:5)(cid:8)(cid:10)(cid:16)*(cid:4)(cid:2)(cid:5)(cid:9)(cid:4)(cid:16)(cid:17)(cid:7)(cid:16)(cid:8)(cid:10)(cid:11)(cid:24)(cid:4)(cid:5)(cid:10)(cid:14)(cid:21)(cid:20)(cid:4)(cid:30)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:14)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)[(cid:7)(cid:18)(cid:16)(cid:21)(cid:14)(cid:3)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)
the last year. The development of the core business, its team and its asset base
has progressed rapidly and prepared the Company well to make the transition
from explorer to developer. That said, as we naturally shift the focus to adapt to
the business of mine development, we intend to maintain both the spirit of, and
capacity for exploration. Hummingbird’s portfolio has exceptional exploration
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further targets and resources within our tenements. 2011-12 has been a very
exciting time for Hummingbird and it has brought us to a privileged position. We
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Daniel Betts
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The Dugbe Shear Zone
3.8Moz gold
Dugbe F
Sackor
Block D
Tuzon
N
NW Joe Village
Greenville
30km
Dugbe
A T L A N T I C
O C E A NN
10km
S I E R R A
L E O N E
G U I N E A
Monrovia
L I B E R I A
C O T E
D ’ I V O I R E
Dugbe Shear Zone
Greenville
A T LT L A N T I C O C EE A N
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17
Tiehnpo
Block A
Block B
Kia Creek
emo Creek
Grand Cess
Legend:
Gold Resource
Pre-Resource gold discovery
Dugbe 1 Project Area
Key targets
Soil grids
Stream sediment sample sites
Licence areas
River/creek
Board of Directors
Ian David Cockerill
Non-Executive Chairman
Ian is the ex-CEO of Gold Fields Ltd and Anglo Coal Ltd. He is the former
(cid:4)+(cid:4)(cid:24)(cid:18)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)(cid:7)(cid:17)(cid:15)(cid:24)(cid:4)(cid:16)(cid:5)(cid:7)(cid:17)(cid:5)(cid:138)(cid:18)(cid:14)(cid:21)(cid:11)(cid:4)(cid:14)(cid:14)(cid:5)K(cid:4)(cid:28)(cid:4)(cid:19)(cid:7)(cid:9)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:29)(cid:17)(cid:16)(cid:21)(cid:24)(cid:10)(cid:11)(cid:5)<(cid:9)(cid:4)(cid:16)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:14)(cid:5)(cid:10)(cid:2)(cid:5)(cid:29)(cid:11)(cid:22)(cid:19)(cid:7)](cid:7)(cid:19)(cid:20)(cid:5)
\(cid:2)(cid:20)(cid:25)(cid:5):(cid:11)(cid:5)_~~_(cid:5):(cid:10)(cid:11)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)(cid:10)(cid:9)(cid:9)(cid:7)(cid:21)(cid:11)(cid:2)(cid:4)(cid:20)(cid:5)(cid:24)(cid:3)(cid:21)(cid:4)(cid:17)(cid:5)(cid:4)+(cid:4)(cid:24)(cid:18)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)(cid:7)(cid:17)(cid:15)(cid:24)(cid:4)(cid:16)(cid:5)(cid:7)(cid:17)(cid:5)](cid:7)(cid:19)(cid:20)(cid:5)%(cid:21)(cid:4)(cid:19)(cid:20)(cid:14)(cid:5)\(cid:2)(cid:20)(cid:25)(cid:5):(cid:10)(cid:11)(cid:5)
#(cid:7)(cid:21)(cid:11)(cid:4)(cid:20)(cid:5)(cid:29)(cid:11)(cid:22)(cid:19)(cid:7)(cid:5)(cid:6)(cid:7)(cid:10)(cid:19)(cid:5)\(cid:2)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)_~~(cid:139)(cid:5)(cid:10)(cid:14)(cid:5)(cid:24)(cid:3)(cid:21)(cid:4)(cid:17)(cid:5)(cid:4)+(cid:4)(cid:24)(cid:18)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)(cid:7)(cid:17)(cid:15)(cid:24)(cid:4)(cid:16)(cid:25)(cid:5):(cid:10)(cid:11)(cid:5)(cid:21)(cid:14)(cid:5)(cid:11)(cid:7)(cid:27)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:4)+(cid:4)(cid:24)(cid:18)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)
chairman of Petmin Ltd, a JSE and AIM quoted natural resource company,
non-executive director of Orica Ltd in Australia and advisor to several other
companies in the mining industry. He has over thirty years’ mining experience in
exploration and mining. Ian is chairman of the LCA (Leadership for Conservation
in Africa). Their vision is to save 20 million hectares of rainforest in Africa by 2020.
Daniel Edward Betts
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Daniel co-founded Hummingbird in November 2005. After graduating from
Nottingham University he worked for Accenture Management Consultants until
he joined the Betts family business in 2000. Founded in 1760, the family business
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and it has a long history of trading across the world and dealing in all areas of
the precious metal industry. Whilst working for the Betts family business Daniel
established a number of natural resource based businesses in Uganda, Namibia,
Sierra Leone, Mauritania and Peru, before starting Hummingbird Resources in
2005.
William Benjamin Thurston Cook
Operations Director
}(cid:21)(cid:19)(cid:19)(cid:21)(cid:10)(cid:8)(cid:5)(cid:21)(cid:14)(cid:5)(cid:10)(cid:5)(cid:17)(cid:7)(cid:16)(cid:8)(cid:4)(cid:16)(cid:5)(cid:7)(cid:17)(cid:15)(cid:24)(cid:4)(cid:16)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:138)(cid:16)(cid:21)(cid:2)(cid:21)(cid:14)(cid:3)(cid:5)(cid:29)(cid:16)(cid:8)(cid:12)(cid:5)(cid:3)(cid:10)(cid:28)(cid:21)(cid:11)(cid:22)(cid:5)(cid:14)(cid:4)(cid:16)(cid:28)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)\(cid:21)(cid:22)(cid:3)(cid:2)(cid:5):(cid:11)(cid:17)(cid:10)(cid:11)(cid:2)(cid:16)(cid:12)(cid:25)(cid:5)
Following his army service he worked in the security sector for many years, for
companies such as Control Risks, Rubicon and Salamanca Risk Management
before joining Hummingbird Resources as Country Manager. William is
experienced in the operational and logistical management of projects in
challenging environments. In his capacity as Operations Director he has been
responsible for the establishment and ongoing running and development of all of
Hummingbird’s operational capability in Liberia.
David Almgren Pelham
Technical Director
David is a mineral geologist with thirty years global exploration experience.
He has worked with a number of mining and exploration companies such as
Placer Dome Inc, Outkumpu Mining and AMAX Exploration. Dave has broad
experience in the exploration and assessment of gold deposits, including all
major gold deposit types, as well as in the exploration and assessment of deposits
of gemstones, major base metals and energy minerals, with a major focus on
Africa. He is credited with the discovery of the Chirano 5-6m ounce gold mine in
Ghana.
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Thomas Rowland Hill
Finance Director
(cid:26)(cid:3)(cid:7)(cid:8)(cid:10)(cid:14)(cid:5)#(cid:7)(cid:21)(cid:11)(cid:4)(cid:20)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:11)(cid:12)(cid:5)(cid:10)(cid:14)(cid:5)(cid:6)(cid:3)(cid:21)(cid:4)(cid:17)(cid:5)%(cid:21)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:5)<(cid:17)(cid:15)(cid:24)(cid:4)(cid:16)(cid:5)(cid:21)(cid:11)(cid:5)?(cid:4)(cid:9)(cid:2)(cid:4)(cid:8)(cid:23)(cid:4)(cid:16)(cid:5)_~W~(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)
was appointed as Finance Director in July 2012. Prior to this Thomas was a senior
manager within BDO LLP’s natural resources department, where he worked
extensively with quoted mining and exploration companies and was involved
(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:11)(cid:18)(cid:8)(cid:4)(cid:16)(cid:7)(cid:18)(cid:14)(cid:5)[(cid:7)(cid:2)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:7)(cid:2)(cid:3)(cid:4)(cid:16)(cid:5)(cid:24)(cid:7)(cid:16)(cid:9)(cid:7)(cid:16)(cid:10)(cid:2)(cid:4)(cid:5)(cid:2)(cid:16)(cid:10)(cid:11)(cid:14)(cid:10)(cid:24)(cid:2)(cid:21)(cid:7)(cid:11)(cid:14)(cid:25)(cid:5)’(cid:4)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:10)(cid:5)(cid:8)(cid:4)(cid:2)(cid:10)(cid:19)(cid:19)(cid:18)(cid:16)(cid:22)(cid:12)(cid:30)(cid:5)
(cid:4)(cid:24)(cid:7)(cid:11)(cid:7)(cid:8)(cid:21)(cid:24)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:8)(cid:10)(cid:11)(cid:10)(cid:22)(cid:4)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:20)(cid:4)(cid:22)(cid:16)(cid:4)(cid:4)(cid:5)(cid:17)(cid:16)(cid:7)(cid:8)(cid:5)(cid:26)(cid:16)(cid:21)(cid:11)(cid:21)(cid:2)(cid:12)(cid:5)(cid:6)(cid:7)(cid:19)(cid:19)(cid:4)(cid:22)(cid:4)(cid:30)(cid:5)<+(cid:17)(cid:7)(cid:16)(cid:20)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:147)(cid:18)(cid:10)(cid:19)(cid:21)(cid:15)(cid:4)(cid:20)(cid:5)
as a chartered accountant in 2001.
Matthew Charles Idiens
Non-Executive Director
Matthew co-founded Hummingbird in November 2005 and he has 21 years’
experience in natural resource companies. He is a founder and Director of
AIM quoted VANE Minerals plc and also founder and director of Seamwell
:(cid:11)(cid:2)(cid:4)(cid:16)(cid:11)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:5)\(cid:2)(cid:20)(cid:30)(cid:5)(cid:10)(cid:5)(cid:9)(cid:16)(cid:21)(cid:28)(cid:10)(cid:2)(cid:4)(cid:5)(cid:24)(cid:7)(cid:8)(cid:9)(cid:10)(cid:11)(cid:12)(cid:5)(cid:20)(cid:4)(cid:28)(cid:4)(cid:19)(cid:7)(cid:9)(cid:21)(cid:11)(cid:22)(cid:5)(cid:18)(cid:11)(cid:20)(cid:4)(cid:16)(cid:22)(cid:16)(cid:7)(cid:18)(cid:11)(cid:20)(cid:5)(cid:24)(cid:7)(cid:10)(cid:19)(cid:5)(cid:22)(cid:10)(cid:14)(cid:21)(cid:15)(cid:24)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)
(UCG) projects in China. From 1995 to 2001 he worked as an associate director
at Laing and Cruickshank Investment Management, part of the Credit Lyonnais
Group.
Roderick James Hollas Smith
Non-Executive Director
Roderick, a Chartered Accountant with a Commerce Degree from the University
of Western Australia, has 30 years’ experience leading Australian resource
projects from the early-stage exploration through to production, including three
gold mines: Great Victoria, Palm Springs and Youanmi. He has been resident
in the UK for three years and has consulted miners and investors on resource
projects throughout Russia and Africa. He is currently a director of Congo
Brazzaville explorer, Cominco SA.
Stephen Alexander Betts
Non-Executive Director
Stephen co-founded the Company in November 2005. He has over 40 years’
experience in trading with gold and related businesses in developing countries,
having established several businesses in West Africa during his career. He is the
Chairman of the Stephen Betts group of companies. The family business has over
_(cid:133)~(cid:5)(cid:12)(cid:4)(cid:10)(cid:16)(cid:14)(cid:13)(cid:5)(cid:3)(cid:21)(cid:14)(cid:2)(cid:7)(cid:16)(cid:12)(cid:5)(cid:21)(cid:11)(cid:5)(cid:14)(cid:8)(cid:4)(cid:19)(cid:2)(cid:21)(cid:11)(cid:22)(cid:30)(cid:5)(cid:16)(cid:4)(cid:15)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:23)(cid:18)(cid:19)(cid:19)(cid:21)(cid:7)(cid:11)(cid:5)(cid:20)(cid:4)(cid:10)(cid:19)(cid:21)(cid:11)(cid:22)(cid:25)(cid:5)
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21
Technical &
Operational
Overview
Technical Summary
Core Values
Operational Summary
Corporate Social Responsibility
Pygmy Hippo Foundation
Liberia
Technical
Summary
Highlights
In September 2011 the Dugbe F Resource was increased to a NI43-101 compliant
Resource of 1.765 Moz gold at 1.3 g/t, of which 1.4 Moz (80%) are in the Indicated
category at 1.3 g/t and 0.4 Moz are in the Inferred category at 1.2g/t. This
Resource is contained within 43 million tonnes of ore.
In February 2012 Hummingbird announced a new maiden Resource of 2.05 Moz
at Tuzon, situated only 2.5km east of the Dugbe F deposit. Tuzon was discovered
at the beginning of 2011 from satellite imagery of old alluvial workings. It was
soil sampled and trenched in mid 2011. In Q4 2011 a 9,700m drill programme
revealed a stacked mineralised system that remained open to the north. The
speed of this discovery increased the Company’s resources by 117% since
September 2011, and by a total of 369% since IPO in December 2010. This
effectively gave Hummingbird the fastest growing gold resource in Africa last
year.
Tuzon
Dugbe F Resource:
1.8Moz
Tuzon Resource:
2.05Moz
The Tuzon Project currently has a NI43-101 compliant Resource of 2.052 Moz gold
at 1.2g/t, all in the Inferred category. This Resource is contained within 53 million
tonnes of ore.
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3D Illustration of the Tuzon deposit with Dugbe F behind
23
The Tuzon deposit comprises a series of shallow southeast dipping lenses, which
outcrop at surface. Besides the southeast dip, the whole deposit pitches gently
to the south. With several separate mineralised lenses, stacked close together
vertically, and at shallow depth, preliminary studies indicate that 80% of this
Inferred Resource will be accessible within a low strip ratio open pit.
This Resource was established from an anomaly with a small surface footprint.
Although the surface anomaly was much smaller than the Dugbe F anomaly, the
fact that the mineralisation repeated itself vertically in a series of stacked lenses
enabled a rapid increase in drilled resources.
Current Resources In ‘The Dugbe 1 Project’
Table showing total current Resource at the Dugbe F Project
Tonnes
(millions)
33.13
9.88
43.01
Grade (g/t) Au Current
Dec 2010
Increase
1.29
1.23
1.28
Ounces Au
Ounces Au
1,373,000
392,000
552,000
260,000
1,765,000
812,000
149%
51%
117%
Indicated*
Inferred*
All*
*At a lower cut off of 0.5g/t Au, no upper cut off
Table showing attributable Resource at the Dugbe F Project
Tonnes
(millions)
31.31
9.42
40.73
Grade (g/t) Au Current
Dec 2010
Increase
1.29
1.24
1.28
Ounces Au
Ounces Au
1,300,000
377,000
552,000
260,000
1,677,000
812,000
136%
45%
107%
Indicated*
Inferred*
All*
*At a lower cut off of 0.5g/t Au, no upper cut off
Table showing total current Resource at the Tuzon Project
Tonnes (millions)
Grade (g/t) Au
Current Ounces Au
Attributable
Inferred*
52.80
1.21
2,052,000
100%
*At a lower cut off of 0.5g/t Au, upper cut off used 7 g/t top cut.
}(cid:21)(cid:2)(cid:3)(cid:5)(cid:23)(cid:7)(cid:2)(cid:3)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:14)(cid:4)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:14)(cid:5)(cid:27)(cid:4)(cid:5)(cid:23)(cid:4)(cid:19)(cid:21)(cid:4)(cid:28)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:16)(cid:4)(cid:5)(cid:21)(cid:14)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:14)(cid:24)(cid:7)(cid:9)(cid:4)(cid:5)(cid:2)(cid:7)(cid:5)(cid:21)(cid:8)(cid:9)(cid:16)(cid:7)(cid:28)(cid:4)(cid:5)
(cid:8)(cid:21)(cid:11)(cid:4)(cid:10)(cid:23)(cid:19)(cid:4)(cid:5)(cid:3)(cid:4)(cid:10)(cid:20)(cid:5)(cid:22)(cid:16)(cid:10)(cid:20)(cid:4)(cid:5)(cid:17)(cid:16)(cid:7)(cid:8)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:4)+(cid:21)(cid:14)(cid:2)(cid:21)(cid:11)(cid:22)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:25)(cid:5)<(cid:11)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:2)(cid:10)(cid:14)*(cid:14)(cid:5)(cid:7)(cid:17)(cid:5)
the newly formed development team has been to look at the existing Resources
(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:8)(cid:7)(cid:16)(cid:4)(cid:5)(cid:17)(cid:7)(cid:24)(cid:18)(cid:14)(cid:5)(cid:7)(cid:11)(cid:5)(cid:20)(cid:4)(cid:15)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:14)(cid:4)(cid:19)(cid:4)(cid:24)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)(cid:8)(cid:21)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:18)(cid:11)(cid:21)(cid:2)(cid:14)(cid:30)(cid:5)(cid:10)(cid:14)(cid:5)(cid:7)(cid:9)(cid:9)(cid:7)(cid:14)(cid:4)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:8)(cid:7)(cid:16)(cid:4)(cid:5)
(cid:23)(cid:16)(cid:7)(cid:10)(cid:20)(cid:5)(cid:23)(cid:16)(cid:18)(cid:14)(cid:3)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)^(cid:9)(cid:10)(cid:14)(cid:14)(cid:5)(cid:21)(cid:11)(cid:17)(cid:4)(cid:16)(cid:16)(cid:4)(cid:20)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)(cid:16)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:14)(cid:5)(cid:24)(cid:10)(cid:19)(cid:24)(cid:18)(cid:19)(cid:10)(cid:2)(cid:4)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:20)(cid:10)(cid:2)(cid:4)(cid:25)(cid:5)}(cid:3)(cid:10)(cid:2)(cid:5)(cid:21)(cid:14)(cid:5)
starting to emerge is the possibility of a number of higher grade starter pits within
(cid:2)(cid:3)(cid:4)(cid:5)(cid:19)(cid:10)(cid:16)(cid:22)(cid:4)(cid:16)(cid:5)(cid:7)(cid:9)(cid:4)(cid:11)(cid:5)(cid:9)(cid:21)(cid:2)(cid:14)(cid:5)(cid:11)(cid:4)(cid:10)(cid:16)(cid:5)(cid:2)(cid:7)(cid:5)(cid:14)(cid:18)(cid:16)(cid:17)(cid:10)(cid:24)(cid:4)(cid:25)(cid:5)(cid:26)(cid:3)(cid:21)(cid:14)(cid:5)(cid:21)(cid:14)(cid:5)(cid:27)(cid:3)(cid:10)(cid:2)(cid:5)(cid:27)(cid:7)(cid:18)(cid:19)(cid:20)(cid:5)(cid:23)(cid:4)(cid:5)(cid:17)(cid:7)(cid:24)(cid:18)(cid:14)(cid:4)(cid:20)(cid:5)(cid:7)(cid:11)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:21)(cid:11)(cid:5)(cid:10)(cid:11)(cid:12)(cid:5)
(cid:8)(cid:21)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:14)(cid:24)(cid:4)(cid:11)(cid:10)(cid:16)(cid:21)(cid:7)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:10)(cid:5)(cid:9)(cid:7)(cid:2)(cid:4)(cid:11)(cid:2)(cid:21)(cid:10)(cid:19)(cid:19)(cid:12)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:9)(cid:7)(cid:14)(cid:21)(cid:2)(cid:21)(cid:28)(cid:4)(cid:5)(cid:21)(cid:8)(cid:9)(cid:10)(cid:24)(cid:2)(cid:5)(cid:7)(cid:11)(cid:5)(cid:9)(cid:16)(cid:7)(cid:15)(cid:2)(cid:10)(cid:23)(cid:21)(cid:19)(cid:21)(cid:2)(cid:12)(cid:5)
and speed of capex repayment in the early years.
Early in 2012, drilling continued in the northern extension of the Tuzon deposit,
‘Tuzon North’, amounting to an additional 5,070m of drilling on top of what had
already been drilled at Tuzon. In Tuzon North, the deposit appears to swing from
a shallow southeast dip to a moderate westerly dip. This drilling extended the
Tuzon Resource by 250m with some excellent intersections. These results are
being incorporated in to the development team’s re-modelling work.
Tuzon North Drilling Highlights:
13.77m @ 2.75 g/t Au in TDC070
22.16m @ 2.48 g/t Au in TDC072
16.20m @ 3.59 g/t Au in TDC070
26.32m @ 1.63 g/t Au in TDC071
The picture within a theoretical mineable radius of this initial deposit is looking
very exciting. A number of new anomalies have been discovered keeping the
target pipeline full.
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Sackor
The next drill target was the Sackor prospect, situated 2km southwest of the
Dugbe F deposit.
25
Trenching and early drilling results have indicated another stacked mineralised
system, similar to Tuzon. The mineralised zones appear to form shallow dipping
structures, repeatedly stacked one on top of the other.
At 31 May 2012, 2,850m had been drilled in 16 diamond core drill holes at the
Sackor prospect. Drilling was completed in July 2012 and we are currently
(cid:10)(cid:27)(cid:10)(cid:21)(cid:2)(cid:21)(cid:11)(cid:22)(cid:5)(cid:15)(cid:11)(cid:10)(cid:19)(cid:5)(cid:16)(cid:4)(cid:14)(cid:18)(cid:19)(cid:2)(cid:14)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:2)(cid:3)(cid:21)(cid:14)(cid:5)(cid:27)(cid:7)(cid:16)*(cid:25)(cid:5)’(cid:7)(cid:27)(cid:4)(cid:28)(cid:4)(cid:16)(cid:30)(cid:5)(cid:4)(cid:10)(cid:16)(cid:19)(cid:12)(cid:5)(cid:10)(cid:14)(cid:14)(cid:10)(cid:12)(cid:5)(cid:21)(cid:11)(cid:20)(cid:21)(cid:24)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:14)(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)(cid:23)(cid:4)(cid:4)(cid:11)(cid:5)
good, and showed that the Sackor deposit will likely form additional Resources
for Hummingbird in this area.
Like Dugbe F and Tuzon, the Sackor deposit outcrops at surface, so should
be accessible in a shallow open pit. Additionally, initial mineralogical work
shows the gold to be largely free, hence broadly similar in style to the Dugbe F
(cid:8)(cid:21)(cid:11)(cid:4)(cid:16)(cid:10)(cid:19)(cid:21)(cid:14)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:25)(cid:5)(cid:29)(cid:14)(cid:5)(cid:14)(cid:18)(cid:24)(cid:3)(cid:30)(cid:5)(cid:21)(cid:2)(cid:5)(cid:24)(cid:7)(cid:11)(cid:2)(cid:21)(cid:11)(cid:18)(cid:4)(cid:14)(cid:5)(cid:2)(cid:7)(cid:5)(cid:24)(cid:7)(cid:11)(cid:15)(cid:16)(cid:8)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:13)(cid:14)(cid:5)(cid:8)(cid:7)(cid:20)(cid:4)(cid:19)(cid:5)^(cid:5)(cid:2)(cid:7)(cid:5)(cid:20)(cid:21)(cid:14)(cid:24)(cid:7)(cid:28)(cid:4)(cid:16)(cid:5)
and develop multiple gold pits within a mineable radius of the original Dugbe F
deposit. The discovery remains open to the north and south.
Sackor Drilling Highlights:
6.00m @ 3.36 g/t Au in SKDC001
2.95m @ 4.12 g/t Au in SKDC007
5.14m @ 2.49 g/t Au in SKDC002
4.00m @ 1.92 g/t Au in SKDC007
4.61m @ 1.92 g/t Au in SKDC006
4.72m @ 2.69 g/t Au in SKDC008
13.00m @ 1.33 g/t Au in SKDC007
7.00m @ 1.63 g/t Au in SKDC008
In the broader regional picture, we have encouraging results in Tiehnpo, the
northwest section of the Joe Village licence (known as NW Joe Village) and
Nemo Creek.
(cid:2)(cid:3)
Tiehnpo – a swarm of gold-in-soil anomalies approximately 7km long by 2km
wide. Positive XRF results indicating wide zones of gold mineralisation. Trench
results pending.
(cid:2)(cid:3) NW Joe Village – four distinct gold-in-soil anomalies over a strike length of 8km.
Trenching underway, 4,000m completed.
(cid:2)(cid:3) Nemo Creek – 7km strike length of gold-in-soil anomalies following the east-
northeast trend of the Dugbe Shear Zone.
Dugbe Shear Zone, Showing Development & Exploration
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27
Dugbe
Shear Zone
Work has progressed on the Dugbe, Joe Village, Nemo Creek and Tiehnpo
licences over the past year.
Key Facts
(cid:2)(cid:3) A prominent northeast – southwest trending fault structure
(cid:2)(cid:3) 70km strike length within our licence area
(cid:2)(cid:3) 2,051km2 of licence area
(cid:2)(cid:3) 3.8 Moz of Resources in Dugbe 1 Project area, currently comprising Dugbe
and Tuzon deposits
(cid:2)(cid:3) >~*(cid:8)(cid:5)(cid:10)(cid:14)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:24)(cid:16)(cid:7)(cid:27)(cid:5)[(cid:21)(cid:4)(cid:14)(cid:5)(cid:2)(cid:7)(cid:5)](cid:16)(cid:4)(cid:4)(cid:11)(cid:28)(cid:21)(cid:19)(cid:19)(cid:4)(cid:5)(cid:9)(cid:7)(cid:16)(cid:2)(cid:5)(cid:152)(cid:5)(cid:7)(cid:9)(cid:4)(cid:16)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:5)(cid:20)(cid:4)(cid:4)(cid:9)(cid:5)(cid:27)(cid:10)(cid:2)(cid:4)(cid:16)(cid:5)(cid:9)(cid:7)(cid:16)(cid:2)(cid:5)
The Dugbe 1 Project area is a theoretical 10km radius around the maiden Dugbe
F Resource and overlaps both the Dugbe F and Joe Village licences.
K(cid:18)(cid:16)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:19)(cid:10)(cid:14)(cid:2)(cid:5)(cid:15)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:5)(cid:12)(cid:4)(cid:10)(cid:16)(cid:5)(cid:7)(cid:18)(cid:2)(cid:19)(cid:21)(cid:11)(cid:4)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:24)(cid:7)(cid:11)(cid:2)(cid:21)(cid:11)(cid:18)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)K(cid:18)(cid:22)(cid:23)(cid:4)(cid:5)W(cid:5)
Project, mostly on a 160m x 160m grid. The Dugbe F Resource was steadily
increased, culminating in September 2011 with an upgraded NI 43-101-compliant
calculation of 1.765 Moz at 1.28 g/t. This represented an almost 1 Moz increase
within 10 months of listing on AIM.
On 1 February 2012, also within this period, a NI 43-101-compliant 2.052 Moz
Resource at 1.21 g/t was discovered at Tuzon, 2.5km east of Dugbe F.
In order to be consistent with last year’s Resource calculation, a 0.5 g/t lower
cut off has been used. However, the Tuzon deposit appears to be more variable
in both thickness and grade than Dugbe F. In contrast to the Dugbe F deposit,
where there was no upper cut-off, a top cut of 7 g/t was used for the Tuzon
(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:5)(cid:24)(cid:10)(cid:19)(cid:24)(cid:18)(cid:19)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:21)(cid:11)(cid:5)(cid:7)(cid:16)(cid:20)(cid:4)(cid:16)(cid:5)(cid:2)(cid:7)(cid:5)(cid:19)(cid:21)(cid:8)(cid:21)(cid:2)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:21)(cid:11)[(cid:18)(cid:4)(cid:11)(cid:24)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:3)(cid:21)(cid:22)(cid:3)^(cid:22)(cid:16)(cid:10)(cid:20)(cid:4)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:4)(cid:5)
results.
Besides the expansion of the Dugbe 1 Project area Resource, much of the drilling
(cid:27)(cid:10)(cid:14)(cid:5)(cid:10)(cid:21)(cid:8)(cid:4)(cid:20)(cid:5)(cid:10)(cid:2)(cid:5)(cid:20)(cid:4)(cid:15)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:4)(cid:20)(cid:22)(cid:4)(cid:14)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:8)(cid:21)(cid:11)(cid:4)(cid:16)(cid:10)(cid:19)(cid:21)(cid:14)(cid:4)(cid:20)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:30)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:23)(cid:4)(cid:21)(cid:11)(cid:22)(cid:5)
focused on the north and south extensions of the Dugbe F deposit and down dip.
Three core drills were used simultaneously on the Dugbe F drilling in the height of
2011. Towards August 2011, these drills were progressively diverted onto the Tuzon
prospect.
Scoping Study / PEA
Numerous activities have been initiated or continued as part of the Dugbe 1
scoping study/Preliminary Economic Assessment, including the following:
Resources
(cid:2)(cid:3) Collection of a representative suite of sample pulps, from both Dugbe and
Tuzon, for assaying by an independent, internationally accredited reference
assay laboratory
(cid:2)(cid:3) Validation of the existing drill hole databases
(cid:2)(cid:3) (cid:29)(cid:20)(cid:20)(cid:21)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:5)(cid:24)(cid:19)(cid:7)(cid:14)(cid:4)(cid:5)(cid:14)(cid:9)(cid:10)(cid:24)(cid:4)(cid:20)(cid:5)(cid:20)(cid:21)(cid:10)(cid:8)(cid:7)(cid:11)(cid:20)(cid:5)(cid:24)(cid:7)(cid:16)(cid:4)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:7)(cid:5)(cid:16)(cid:4)(cid:15)(cid:11)(cid:4)(cid:5)(cid:28)(cid:10)(cid:16)(cid:21)(cid:7)(cid:22)(cid:16)(cid:10)(cid:9)(cid:3)(cid:21)(cid:24)(cid:5)
estimation parameters
(cid:2)(cid:3) Resource estimation studies using geostatistical estimation techniques that are
appropriate for the pit optimisation studies using selective mining unit (“SMU”)
emulation
(cid:2)(cid:3) Preparation for the compilation of all existing exploration data into a suitable
relational database
(cid:2)(cid:3) K(cid:4)(cid:2)(cid:4)(cid:16)(cid:8)(cid:21)(cid:11)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:7)(cid:17)(cid:5)(cid:10)(cid:9)(cid:9)(cid:16)(cid:7)(cid:9)(cid:16)(cid:21)(cid:10)(cid:2)(cid:4)(cid:5)(cid:21)(cid:11)(cid:15)(cid:19)(cid:19)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:9)(cid:10)(cid:16)(cid:10)(cid:8)(cid:4)(cid:2)(cid:4)(cid:16)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:8)(cid:4)(cid:2)(cid:3)(cid:7)(cid:20)(cid:14)
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Pit optimisation, scheduling, operating and capital cost estimates
(cid:2)(cid:3) Determination of operating costs for a range of potential mill throughputs
in order to undertake a ‘hill of values’ study to determine the optimum
development route for the Dugbe 1 project (including appropriate capital
estimates)
(cid:2)(cid:3) Pit optimisation and mine scheduling optimisation studies on the SMU resource
model
(cid:2)(cid:3) Preliminary mine designs based on the results of the pit optimisations
(cid:2)(cid:3)
Investigation of a staged development approach wherein a planned
expansion route is built into the operating and capital cost estimates
Geotechnical studies
(cid:2)(cid:3)
:(cid:11)(cid:21)(cid:2)(cid:21)(cid:10)(cid:19)(cid:5)(cid:22)(cid:4)(cid:7)(cid:2)(cid:4)(cid:24)(cid:3)(cid:11)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)(cid:14)(cid:2)(cid:18)(cid:20)(cid:21)(cid:4)(cid:14)(cid:5)(cid:21)(cid:11)(cid:5)(cid:7)(cid:16)(cid:20)(cid:4)(cid:16)(cid:5)(cid:2)(cid:7)(cid:5)(cid:16)(cid:4)(cid:15)(cid:11)(cid:4)(cid:5)*(cid:4)(cid:12)(cid:5)(cid:9)(cid:10)(cid:16)(cid:10)(cid:8)(cid:4)(cid:2)(cid:4)(cid:16)(cid:14)
Metallurgy
(cid:2)(cid:3) Compilation of all metallurgical studies to date
(cid:2)(cid:3) Preparation of mineralised zone composites based on the sample pulp library,
from both Dugbe and Tuzon, for bottle roll gold extraction, along with residue
assaying in order to map the gold recoveries of both deposits in 3D. This is the
(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:14)(cid:2)(cid:10)(cid:22)(cid:4)(cid:5)(cid:21)(cid:11)(cid:5)(cid:23)(cid:18)(cid:21)(cid:19)(cid:20)(cid:21)(cid:11)(cid:22)(cid:5)(cid:10)(cid:5)(cid:153)(cid:22)(cid:4)(cid:7)^(cid:8)(cid:4)(cid:2)(cid:10)(cid:19)(cid:19)(cid:18)(cid:16)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:13)(cid:5)(cid:8)(cid:7)(cid:20)(cid:4)(cid:19)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:2)(cid:27)(cid:7)(cid:5)(cid:20)(cid:4)(cid:9)(cid:7)(cid:14)(cid:21)(cid:2)(cid:14)
(cid:2)(cid:3) (cid:29)(cid:20)(cid:20)(cid:21)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:5)(cid:22)(cid:16)(cid:21)(cid:11)(cid:20)(cid:5)(cid:14)(cid:21)X(cid:4)(cid:5)(cid:14)(cid:2)(cid:18)(cid:20)(cid:21)(cid:4)(cid:14)(cid:5)(cid:21)(cid:11)(cid:5)(cid:7)(cid:16)(cid:20)(cid:4)(cid:16)(cid:5)(cid:2)(cid:7)(cid:5)(cid:16)(cid:4)(cid:15)(cid:11)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:7)(cid:9)(cid:2)(cid:21)(cid:8)(cid:18)(cid:8)(cid:5)(cid:9)(cid:16)(cid:7)#(cid:4)(cid:24)(cid:2)(cid:5)
(cid:8)(cid:4)(cid:2)(cid:10)(cid:19)(cid:19)(cid:18)(cid:16)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)[(cid:7)(cid:27)^(cid:14)(cid:3)(cid:4)(cid:4)(cid:2)
(cid:2)(cid:3)
Further comminution studies
Site studies
(cid:2)(cid:3)
(cid:2)(cid:3)
Investigation of appropriate site locations (plant, waste dumps and tailings
dumps)
Initial logistics studies (access roads, port locations etc.)
Both the Dugbe F and Tuzon deposits outcrop at surface and have overall
shallow dips, so both deposits should be able to achieve a high conversion rate
from geological into mineable ounces. Some preliminary work has shown that:
(cid:2)(cid:3) At Dugbe F, some 65% of the total resource could convert into an open pit
with 6.1:1 waste:ore ratio
(cid:2)(cid:3) At Tuzon, some 80% of the total resource could convert into an open pit with
3.4:1 waste:ore ratio
(cid:2)(cid:3) Adding these two together gives 2.78 Moz available at a weighted average
strip ratio of 4.5:1 - which is very encouraging at this early stage.
As a result of the technical studies carried out thus far, we now have a greatly
increased understanding of the geological and mineralisation structures within
the Dugbe 1 Project area. High level geological mapping has established that
the gold appears to have derived from a series of intrusive granodiorites – these
are intruded with a distinctive garnet alteration zone, and the mineralisation
appears to lie just outside the garnet alteration zone. With this new understanding
in place, it is easier to make sense of the geology in and around the Dugbe F
Project, and to thereby guide the work going forward.
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Dugbe Licence (Blocks A, B, D, F)
The Dugbe licence covers 450km2 and was awarded to Hummingbird in
November 2005. It is 100% Hummingbird owned.
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One of these is at Tuzon, lying 2.5km to the east of this Resource. At Tuzon, a large
and well-developed gold-in-soil anomaly was established, extending to a total
of 2.2km in strike length, with soil values exceeding 1 ppm Au in parts. Trenching
at this prospect has shown major thicknesses of anomalous arsenic, together with
several zones of gold mineralisation.
This excellent and strong gold anomaly contains a coincident arsenic anomaly,
and provided an exciting target for outline drilling near to the initial deposit in the
Dugbe F Project. This target has been outline-drilled to give an initial Resource of
2.052 Moz at 1.21 g/t.
In addition to the drilling, over 2,000m of trenching has been completed on the
Dugbe licence (mostly at Tuzon), with over 2,390 trench samples sent for assay, as
well as approximately 200 other rock grab samples assayed.
A major development in 2011 was the agreement to acquire100% ownership
of the Joe Village licence. This means that Hummingbird not only holds 100% of
the enlarged Dugbe F deposit, but also 100% of all future resources discovered
on that licence. This agreement concludes once Hummingbird’s Mineral
Development Agreement (“MDA”) has been granted by the government of
Liberia.
At the Sackor prospect, situated 2.1km southwest of the south end of the Dugbe
F deposit, a promising gold-in-soil anomaly was trenched with a total of some
3,000m of trenching. This revealed trench intersections of up to 20m at 1.16 g/t,
within a broader low-grade mineralised envelope. A core drill was transferred to
the Sackor prospect in early 2012.
By the end of May 2012, 2,850m had been drilled in 16 diamond drill holes at
Sackor. Trenching and early drilling results have indicated another stacked
mineralised system, similar in some ways to Tuzon. The multiple mineralised zones
appear to be shallow dipping and stacked one on top of the other.
Early assay indications have been encouraging and show that the Sackor
deposit will likely form a resource in this area.
Continuing our exploration of the Dugbe 1 Project area, we are systematically
working outwards from the Dugbe F deposit. Following outline drilling at Tuzon
and most recently at Sackor, our next target is the Sackor 2 prospect, 3km west
of the Dugbe F deposit. This prospect showed up as an attractive gold-in-soil
anomaly of approximately 500m in length. A 2,000m initial trenching plan is
underway.
Joe Village Licence
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prospective targets in the Joe Village licence, around 15km northwest of Dugbe
F. This target area is known as NW Joe Village. The targets comprise stream
sediment sample anomalies in an area close to drainage watersheds and near
to artisanal workings (these latter points indicate that the source to the artisanal
gold must be close by). Accordingly we undertook an extensive series of soil
sample surveys over four large grids and a total of 2,400 samples were taken to
investigate these targets.
These soil grids showed four distinct gold-in-soil anomalies within an east-west
trend, over a strike length of 8km. The largest of these is in Grid 6, extending for
about 2 km in strike length. These anomalies appear to extend from the west
(cid:27)(cid:3)(cid:4)(cid:16)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:14)(cid:10)(cid:8)(cid:4)(cid:5)(cid:10)(cid:11)(cid:7)(cid:8)(cid:10)(cid:19)(cid:7)(cid:18)(cid:14)(cid:5)X(cid:7)(cid:11)(cid:4)(cid:14)(cid:5)(cid:10)(cid:9)(cid:9)(cid:4)(cid:10)(cid:16)(cid:5)(cid:2)(cid:7)(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)(cid:23)(cid:4)(cid:4)(cid:11)(cid:5)(cid:21)(cid:20)(cid:4)(cid:11)(cid:2)(cid:21)(cid:15)(cid:4)(cid:20)(cid:5)(cid:7)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:22)(cid:16)(cid:7)(cid:18)(cid:11)(cid:20)(cid:5)
of Tawana Resources further to the west. A major programme of trenching has
begun with 4,000m completed with likely extensions. While not all the results have
yet been received, early indications show that there are anomalous zones within
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Dugbe Shear Zone has potential to host multiple gold mines.
Nemo Creek Licence
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The Nemo Creek licence is a large licence area of 690km2 in the south of our
DSZ licence package. It lies to the south of the Dugbe 1 Project area. Stream
(cid:14)(cid:4)(cid:20)(cid:21)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:21)(cid:20)(cid:4)(cid:11)(cid:2)(cid:21)(cid:15)(cid:4)(cid:20)(cid:5)(cid:11)(cid:18)(cid:8)(cid:4)(cid:16)(cid:7)(cid:18)(cid:14)(cid:5)(cid:22)(cid:7)(cid:19)(cid:20)(cid:5)(cid:10)(cid:11)(cid:7)(cid:8)(cid:10)(cid:19)(cid:21)(cid:4)(cid:14)(cid:25)(cid:5)(cid:29)(cid:24)(cid:24)(cid:7)(cid:16)(cid:20)(cid:21)(cid:11)(cid:22)(cid:19)(cid:12)(cid:30)(cid:5)(cid:10)(cid:5)(cid:2)(cid:7)(cid:2)(cid:10)(cid:19)(cid:5)
of 12 soil sampling grids were designed to investigate these anomalies further.
These grids amount to 20,000 soil samples at 200m x 40m spacing, all taken by
the Group’s soil sampling teams based on GPS grids and is one of the largest
geochemical soil sampling programmes to be undertaken anywhere in West
Africa. 20,000 soil samples more than doubles the total taken prior to this period
on all of Hummingbird’s licences and the size of this programme is therefore
testament to Hummingbird’s continued commitment to intensive and sustained
exploration across our landholdings.
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extremity of the Nemo Creek licence. While the results are as yet incomplete
they have so far shown a swarm of east-northeast trending gold-in-soil anomalies,
extending 7km in strike length. We are awaiting the receipt of all the soil sample
results and will do a fuller interpretation in due course. Preliminary results indicate
another exciting target area for trenching and hopefully drilling.
Tiehnpo Licence
The 665km2 Tiehnpo licence lies on the east end of Hummingbird’s 2,000 km2
ground held along the Dugbe Shear Zone, approximately 50km east of the
Dugbe 1 Project. The north part of the Tiehnpo licence area has long been
known to host extensive artisanal workings in alluvial settings. Establishing the
hard rock source of gold in these alluvial workings has been a target for the
Hummingbird exploration team.
At Sardiaken in the Tiehnpo licence, 4,600 soil samples were taken during the
past year. These samples showed a broad swarm of east-northeast trending
gold-in-soil anomalies. The whole zone measures 7km long by 2km wide, with
individual anomalies up to nearly 4km in length. The area contains abundant
artisanal workings and is an exciting new target area.
Since the year end an extensive trenching programme has started on this
anomaly. Early XRF results show strong and broad anomalous arsenic zones,
which are characteristically associated with gold in this area. In the Dugbe 1
Project area there is a strong correlation between the occurrence of arsenic and
gold. It should be noted that little or none of the gold appears to lie within actual
arsenopyrite grains or to be otherwise refractory in nature - however in a general
sense the gold zones do lie within broad arsenic haloes.
Initial results with the XRF arsenic values in Tiehnpo trenches are highly
encouraging, with up to nearly 60m true thickness giving an average of over
250ppm As with the hand held XRF, and a second separate interval of almost
30m true thickness giving an average of 164ppm. These intervals are highly
encouraging in terms of the potential for wide zones of gold mineralisation.
Trench gold assay results are pending.
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(cid:24)(cid:16)(cid:10)(cid:17)(cid:9)(cid:15)(cid:25) Christopher Fozard, Exploration Manager
Chris was born and raised in Whitehorse, Yukon,
northwestern Canada. Adventurous parents and a
(cid:3)(cid:4)(cid:10)(cid:19)(cid:2)(cid:3)(cid:12)(cid:5)(cid:20)(cid:21)(cid:4)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:15)(cid:14)(cid:3)(cid:21)(cid:11)(cid:22)(cid:30)(cid:5)(cid:24)(cid:10)(cid:8)(cid:9)(cid:21)(cid:11)(cid:22)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:3)(cid:21)*(cid:21)(cid:11)(cid:22)(cid:5)(cid:19)(cid:4)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:10)(cid:5)(cid:19)(cid:7)(cid:11)(cid:22)^
term interest in outdoor pursuits. This activity translated
(cid:11)(cid:10)(cid:2)(cid:18)(cid:16)(cid:10)(cid:19)(cid:19)(cid:12)(cid:5)(cid:2)(cid:7)(cid:27)(cid:10)(cid:16)(cid:20)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:12)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:27)(cid:7)(cid:16)*(cid:30)(cid:5)(cid:27)(cid:3)(cid:21)(cid:24)(cid:3)(cid:5)(cid:6)(cid:3)(cid:16)(cid:21)(cid:14)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)
been involved with since 2003 and throughout his degree.
Work has taken him all over western Canada, to Chile
and to China numerous times to work on a variety of
mineral systems.
Chris (right) leads a site visit at Sackor
Working in Africa may have been inevitable and
Hummingbird’s large-scale, active pursuit of a burgeoning gold district provided an exciting
opportunity to expand his knowledge of orogenic gold systems in a challenging environment.
A healthy balance and awareness of data and people management make Chris an asset to
(cid:10)(cid:11)(cid:12)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:7)(cid:9)(cid:4)(cid:16)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:25)(cid:5)<(cid:23)(cid:14)(cid:4)(cid:16)(cid:28)(cid:21)(cid:11)(cid:22)(cid:5)(cid:7)(cid:16)(cid:4)(cid:5)(cid:20)(cid:4)(cid:9)(cid:7)(cid:14)(cid:21)(cid:2)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:3)(cid:7)(cid:27)(cid:5)(cid:2)(cid:3)(cid:4)(cid:12)(cid:5)(cid:15)(cid:2)(cid:5)(cid:21)(cid:11)(cid:2)(cid:7)(cid:5)(cid:10)(cid:5)(cid:22)(cid:4)(cid:11)(cid:4)(cid:16)(cid:10)(cid:19)(cid:5)(cid:17)(cid:16)(cid:10)(cid:8)(cid:4)(cid:27)(cid:7)(cid:16)*(cid:30)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)
respect given to the detail and characteristics of individual mineralised bodies, continues to
help Chris advance his understanding of exploration science.
Outside of work Chris enjoys skiing, biking, skim-boarding and the odd game of golf. Business
in exploration is sure to continue in the years to come, while still making time for his various
interests and pursuits.
Technical Developments
In May 2012, Hummingbird appointed Dr Julian Barnes as Head of Project
Development on a consultancy basis. In 1987 Julian co-founded the Resource
Service Group (RSG), an international exploration and mining consultancy with
a focus on West Africa. RSG subsequently merged with Global Mining Services
to form RSG Global, which in turn was then acquired by Coffey Mining Limited.
From 2004 until 2010, Julian was Executive Vice President of Dundee Precious
Metals Inc., and since 2010 a director of Serbia-focused Avala Resources Ltd.
He has extensive international experience including over 15 years in West Africa.
Julian has also worked on a large number of bankable feasibility studies and has
undertaken numerous technical due diligence assessments for resource banking
institutions.
(cid:29)(cid:5)\(cid:21)K(cid:29)(cid:127)(cid:5)(cid:31)\(cid:21)(cid:22)(cid:3)(cid:2)(cid:5)K(cid:4)(cid:2)(cid:4)(cid:24)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:127)(cid:10)(cid:11)(cid:22)(cid:21)(cid:11)(cid:22)"(cid:5)(cid:14)(cid:18)(cid:16)(cid:28)(cid:4)(cid:12)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)[(cid:7)(cid:27)(cid:11)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:24)(cid:7)(cid:8)(cid:9)(cid:19)(cid:4)(cid:2)(cid:4)(cid:20)(cid:5)(cid:10)(cid:24)(cid:16)(cid:7)(cid:14)(cid:14)(cid:5)
the Dugbe 1 Project area in order to provide high quality photography and
topographic data.
LIDAR is an optical remote sensing technology that uses laser pulses and is
commonly used to undertake extremely accurate topographic surveys. The
system is accurate to 15cm (x,y coordinates) and 8cm (z coordinate). It also
provides very high-resolution photographic imagery (10cm pixel size).
This data set will provide us with not only engineering grade topographic
accuracy for the proposed mine development area, but also extremely
accurate positioning of the current sites of artisanal mining activities within the
Dugbe 1 Project area. It is also expected to provide high quality topographic
base maps for geological mapping and structural analysis.
Hummingbird is also working in partnership with the Camborne School of Mines
(CSM) in UK. PhD student, Ryan Langdon, is undertaking a three year mapping
(cid:9)(cid:16)(cid:7)(cid:22)(cid:16)(cid:10)(cid:8)(cid:8)(cid:4)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:10)(cid:21)(cid:8)(cid:5)(cid:7)(cid:17)(cid:5)(cid:4)(cid:14)(cid:2)(cid:10)(cid:23)(cid:19)(cid:21)(cid:14)(cid:3)(cid:21)(cid:11)(cid:22)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:2)(cid:21)(cid:8)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:12)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:22)(cid:7)(cid:19)(cid:20)(cid:5)
mineralisation controls of the Dugbe Shear Zone. In an area such as eastern
Liberia, where no one has ever undertaken detailed mapping or exploration
activities, this will be an exciting study and we look forward to the results as they
unfold.
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37
(cid:24)(cid:16)(cid:10)(cid:17)(cid:9)(cid:15)(cid:25)(cid:6)Janjay Verdier, Field Assistant
I graduated in 1989 from the New Testament Baptist
School in Buchanan, Grand Bassa County and joined
Hummingbird Resources on 16 Oct 2009. I have worked
as part of the team and shown myself worthy of
additional responsibilities. I have been involved in the
following projects:
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In 2010 I helped to build access roads to drill pads
and in the preparation of drill pads
In 2011 I assisted with the trenching projects in a remote part of our licence area
I supervised drilling projects in Zia, Grand Gedeh County, and supervised smaller work
projects on camp
In 2012, I was put in charge of managing the entire trenching program at the Mt Ginka
project in Nimba. This is my greatest responsibility to date, and one which I am proud of.
Since running this project I have also been able to assist with guests on site visits to the area
and showcase my knowledge
Hummingbird Resources have taught me how to cut trenching lines and soil sampling lines,
so that I can assist the larger geological program. In summary working with Hummingbird
(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:14)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:21)(cid:8)(cid:9)(cid:16)(cid:7)(cid:28)(cid:4)(cid:20)(cid:5)(cid:8)(cid:12)(cid:5)(cid:14)*(cid:21)(cid:19)(cid:19)(cid:14)(cid:5)(cid:22)(cid:16)(cid:4)(cid:10)(cid:2)(cid:19)(cid:12)(cid:5)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)(cid:14)(cid:7)(cid:5)(cid:20)(cid:7)(cid:21)(cid:11)(cid:22)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:10)(cid:19)(cid:14)(cid:7)(cid:5)
improved my lifestyle.
I love working with Hummingbird Resources because of their good working relationship with
employees. I also like to see the mining process and all the achievements that we have had
with the company.
Juazohn
Shear Zone
The Juazohn Shear Zone (“JSZ”) separates younger Proterozoic metasediments
and metavolcanics on the west from Archaean gneisses on the east.
Zia Licence
This licence covers 443km2 and was awarded to Deveton Mining Company
(“Deveton”) in November 2005. Hummingbird owns 80% of Deveton.
Hummingbird is targeting BIF hosted gold deposits across the Zia licence. A
large amount of exploration, including stream sediment sampling, soil sampling,
trenching and auger drilling, has occurred across this licence during the years
that Hummingbird has owned it.
1,950m of scout core drilling were completed at the end of 2010. While the results
did not show intersections of obvious economic grades, a large number of pyritic
mineralised zones were intersected, with gold values up to 1.7 g/t. In fact, the
mineralised zones are characterised by strong silver and bismuth haloes, and
(cid:17)(cid:18)(cid:16)(cid:2)(cid:3)(cid:4)(cid:16)(cid:5)(cid:14)(cid:24)(cid:7)(cid:18)(cid:2)(cid:5)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:21)(cid:14)(cid:5)(cid:9)(cid:19)(cid:10)(cid:11)(cid:11)(cid:4)(cid:20)(cid:30)(cid:5)(cid:7)(cid:11)(cid:24)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:14)(cid:2)(cid:10)(cid:2)(cid:18)(cid:14)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:19)(cid:21)(cid:24)(cid:4)(cid:11)(cid:24)(cid:4)(cid:14)(cid:5)(cid:21)(cid:14)(cid:5)(cid:15)(cid:11)(cid:10)(cid:19)(cid:21)(cid:14)(cid:4)(cid:20)(cid:5)(cid:31)Q(cid:21)(cid:10)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)
the adjacent licences are the subject of an MDA application).
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Kana Hills Licence
39
This licence covers 257km2 and was awarded to Geotess International
Corporation in 2004, which was then transferred to Afro Minerals Inc (“Afro”) in
2007. Hummingbird owns 80% of Afro. The licence adjoins the Zia licence in the
JSZ and covers the continuation of the northeast trending BIF ridge, along which
numerous artisanal gold workings and stream sediment anomalies are located.
Jababli Licence
The licence covers 400km2 and was awarded to Deveton in October 2009.
Hummingbird owns 80% of Deveton.
Earlier stream sediment sampling work established exciting gold targets
associated with amphibolite ridges of likely Archaean age. Follow-up soil
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ridge with abundant artisanal workings in streams draining off it. A major
trenching programme has been completed along this ridge.
A trenching programme amount of 1,300m in length was completed along
the Peace Camp ridge. This was focused on gold-in-soil and stream sediment
anomalies on the Peace Camp ridge, a 9km ridge of amphibolite and other
metamorphosed rocks of likely Archaean age. Trench results were disappointing,
indicating narrow structures containing gold mineralisation.
However, there are two other prospects within the Jababli licence where further
(cid:27)(cid:7)(cid:16)*(cid:5)(cid:21)(cid:14)(cid:5)#(cid:18)(cid:14)(cid:2)(cid:21)(cid:15)(cid:4)(cid:20)(cid:130)
(cid:2)(cid:3)
Sloh Meh - a major artisanal working near a watershed, where previous soil
sampling was unsuccessful due to the depth and inhomogeneous nature of
the soil horizon
(cid:2)(cid:3) Peace Camp East - major artisanal working situated to the east of Peace
Camp ridge, and yet to be investigated
Zwedru Licence
This licence covers 1,000km2 and was awarded to Hummingbird in April 2010.
Hummingbird owns 100% of this licence.
A stream sediment sampling programme, totalling over 1,140 samples on the
Zwedru licence revealed a number of anomalous gold areas, mostly focused
around the east and southeast of the 1000km2 licence. Follow up stream
(cid:14)(cid:4)(cid:20)(cid:21)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:4)(cid:14)(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)(cid:23)(cid:4)(cid:4)(cid:11)(cid:5)(cid:2)(cid:10)*(cid:4)(cid:11)(cid:30)(cid:5)(cid:24)(cid:7)(cid:11)(cid:15)(cid:16)(cid:8)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:4)+(cid:2)(cid:4)(cid:11)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:14)(cid:4)(cid:5)(cid:10)(cid:11)(cid:7)(cid:8)(cid:10)(cid:19)(cid:21)(cid:4)(cid:14)(cid:25)(cid:5)
A soil sampling programme on the eastern anomalous area has been planned,
totalling some 800 soil samples. In the southeast area, the anomalous area abuts
against the anomalous zones of the Zia and Kana Hills projects, where overall soil
sampling did not work well in the past.
Dube
Shear Zone
Tawake Licence
This licence covers 665km2 and was awarded to Hummingbird in April 2010. The
licence is 100% Hummingbird owned. The licence is geologically well situated,
lying on the junction of the regional scale Dugbe and Dube Shear Zones, with
evidence of abundant intrusive igneous activity. As a point of comparison, the
gold mineralisation in the Dugbe Shear Zone appears to be largely associated
with acid intrusive activity.
Follow up stream sediment sampling work has been completed at Tawake,
bringing the total of stream sediment samples here to over 600. A 1,500m soil
sample programme has been proposed.
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Gekehn Licence
This licence covers 795km2 and was awarded to Hummingbird in April 2010. The
licence is 100% Hummingbird owned.
We have completed 570 stream sediment samples. A broad zone showing
anomalous lithium was delineated, and a follow-up soil sampling programme of
approximately 800 soil samples is planned.
A number of gold anomalies were outlined, including a broad zone, several
kilometres in length, showing strongly anomalous lithium values. Further stage
work is being planned.
Plibo Licence
This licence covers 375km2 and was awarded to Hummingbird in April 2010.
The licence is 100% Hummingbird owned.
‘(cid:156)~(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:9)(cid:10)(cid:14)(cid:14)(cid:5)(cid:14)(cid:2)(cid:16)(cid:4)(cid:10)(cid:8)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:4)(cid:14)(cid:5)(cid:27)(cid:4)(cid:16)(cid:4)(cid:5)(cid:2)(cid:10)*(cid:4)(cid:11)(cid:5)(cid:7)(cid:11)(cid:5)(cid:2)(cid:3)(cid:21)(cid:14)(cid:5)(cid:19)(cid:21)(cid:24)(cid:4)(cid:11)(cid:24)(cid:4)(cid:30)(cid:5)(cid:21)(cid:11)(cid:24)(cid:16)(cid:4)(cid:10)(cid:14)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:7)(cid:5)>(cid:156)~(cid:5)
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extended the anomalous zones.
A series of soil sample grids have been designed to further investigate these
anomalies. We aim to take a total of 2,000 samples.
Cestos
Shear Zone
Ba Licence
This licence covers 625km2 and was awarded to Deveton in October 2009.
Hummingbird owns 80% of Deveton. The Ba licence lies in Archaean rocks
immediately west of the Cestos Shear Zone, and is also immediately north of
Amlib United Minerals Inc’s Cestos project, with its multiple gold targets.
K(cid:18)(cid:16)(cid:21)(cid:11)(cid:22)(cid:5)_~WW(cid:30)(cid:5)(cid:17)(cid:18)(cid:16)(cid:2)(cid:3)(cid:4)(cid:16)(cid:5)(cid:14)(cid:7)(cid:21)(cid:19)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)(cid:18)(cid:11)(cid:20)(cid:4)(cid:16)(cid:2)(cid:10)*(cid:4)(cid:11)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:4)(cid:2)(cid:2)(cid:4)(cid:16)(cid:5)(cid:20)(cid:4)(cid:15)(cid:11)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:14)(cid:7)(cid:21)(cid:19)(cid:5)
anomalies on this licence. This brings to date a total of 1,160 soil samples on this
property. A programme of 1,500m of trenching is proposed as the next stage of
work here.
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(cid:24)(cid:16)(cid:10)(cid:17)(cid:9)(cid:15)(cid:25)(cid:6)Papie Yarmeto, Geologist
I am a Liberian from Lofa County and of the Lorma
Ethnic tribe, born on October 14th 1982. I enrolled at
the St. Jean’s Liberian Catholic School in 1997 in the
Ivory Coast where I completed my Senior High School
Education in 2000.
In 2006, I enrolled at the University of Liberia to study
Geology. While at the university I obtained sponsorship
from Hummingbird along with 14 other students at that
(cid:2)(cid:21)(cid:8)(cid:4)(cid:25)(cid:5)(cid:26)(cid:3)(cid:21)(cid:14)(cid:5)(cid:14)(cid:9)(cid:7)(cid:11)(cid:14)(cid:7)(cid:16)(cid:14)(cid:3)(cid:21)(cid:9)(cid:5)(cid:22)(cid:10)(cid:28)(cid:4)(cid:5)(cid:8)(cid:4)(cid:5)(cid:15)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:5)(cid:10)(cid:14)(cid:14)(cid:21)(cid:14)(cid:2)(cid:10)(cid:11)(cid:24)(cid:4)(cid:5)(cid:2)(cid:7)(cid:5)
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:(cid:5)(cid:14)(cid:2)(cid:10)(cid:16)(cid:2)(cid:4)(cid:20)(cid:5)(cid:8)(cid:12)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:27)(cid:7)(cid:16)*(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:5)(cid:10)(cid:14)(cid:5)(cid:10)(cid:5)(cid:14)(cid:2)(cid:18)(cid:20)(cid:4)(cid:11)(cid:2)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:14)(cid:2)(cid:5)(cid:21)(cid:11)(cid:5)(cid:129)(cid:10)(cid:12)(cid:5)_~WW(cid:25)(cid:5):(cid:5)(cid:27)(cid:7)(cid:16)*(cid:4)(cid:20)(cid:5)
on a number of trenching programmes where I was responsible for trench mapping and
geological logging. I also worked on soil sampling programmes in Sackor for a number of
weeks, which formed the basis of the recent drilling there. I also helped with geotechnical
and structural core loggings from Tuzon drill programmes. At the end of 2011 I was trained to
manage aspects of the daily running of the drill programme. In January 2012 I managed the
day to day running of the drill program in Tuzon and Sackor.
My experience with Hummingbird is a good and successful one. I look forward to future
training in geological software and in other areas of studies. Working with Hummingbird is a
great advantage; I am able to work in different areas on projects to enhance my knowledge
as geologist. Hummingbird is well organised with the potential to improve livelihood, team
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(cid:24)(cid:16)(cid:10)(cid:17)(cid:9)(cid:15)(cid:25)(cid:6)Totoe Paye, Head Driver
Totoe Paye, Head Driver
I was born in Grand Bassa County and am of the Bassa
tribe. I did different types of training at the Don Bosco
school in Buchannan.
Hummingbird Resources hired me as a driver in January
2009. I can drive both light and heavy vehicles. I was
trained to drive heavy vehicles in the Ivory Coast. I am
now Head Driver for Hummingbird Resources. I help the
Assistant Fleet Manager to organise the team of drivers
(cid:10)(cid:11)(cid:20)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:2)(cid:21)(cid:8)(cid:4)(cid:2)(cid:10)(cid:23)(cid:19)(cid:4)(cid:25)(cid:5):(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:4)(cid:5)[(cid:4)+(cid:21)(cid:23)(cid:19)(cid:4)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:8)(cid:10)*(cid:4)(cid:5)(cid:10)(cid:5)(cid:19)(cid:7)(cid:2)(cid:5)
of changes all the time. We have over 22 light vehicles, and lots of drivers up-country too.
Hummingbird Resources is a good company. I am happy that I have increased my training
and my responsibilities. I would like to do more training in the future and I hope for good
prosperity for Hummingbird because if Hummingbird is successful then its people will be too.
Iron Ore
Mt Ginka Licence
This licence covers 155km2 and is held in a 50%-50% Joint Venture with Petmin Ltd.
During 2011 a number of exploration activities were conducted at the Mt Ginka
iron ore prospect. These included compilation of historical work, followed by an
airborne geophysical survey with geophysical interpretation and reviews using
highly experienced external consultants.
:(cid:11)(cid:5)(cid:8)(cid:21)(cid:20)(cid:5)_~WW(cid:5)(cid:10)(cid:5)(cid:9)(cid:16)(cid:7)(cid:22)(cid:16)(cid:10)(cid:8)(cid:8)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:8)(cid:10)(cid:9)(cid:9)(cid:21)(cid:11)(cid:22)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:2)(cid:16)(cid:4)(cid:11)(cid:24)(cid:3)(cid:21)(cid:11)(cid:22)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)(cid:21)(cid:11)(cid:21)(cid:2)(cid:21)(cid:10)(cid:2)(cid:4)(cid:20)(cid:25)(cid:5)%(cid:21)(cid:28)(cid:4)(cid:5)
trenches amounting to 570m were completed at various points along the
ridge, with the trenches being logged and channel sampled. Reconnaissance
geological mapping was conducted along the ridge, with a focus on the west
side where the ridge is higher and iron formation thicknesses appear to be
greater. Trench samples were taken for XRF/XRD/SEM and petrographic analysis
of hand samples was undertaken by a mineralogist in the UK.
As a follow up to the 2011 work, in February 2012 we proposed 1,000m scout
drilling and trenching programme on the Mt Ginka Iron Ore prospect. The aim
of this programme was to further investigate the thickness and character of the
Ginka iron formation along strike, as well as to obtain fresh magnetite samples for
preliminary test work. Seven drill holes totalling 1,000m and 8 trenches totalling
1,000m were proposed with the objective of establishing the extent of the
(cid:8)(cid:10)(cid:22)(cid:11)(cid:4)(cid:2)(cid:21)(cid:24)(cid:5):(cid:16)(cid:7)(cid:11)(cid:5)%(cid:7)(cid:16)(cid:8)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:31)|:%(cid:135)"(cid:5)(cid:18)(cid:11)(cid:21)(cid:2)(cid:14)(cid:5)(cid:21)(cid:20)(cid:4)(cid:11)(cid:2)(cid:21)(cid:15)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)(cid:9)(cid:16)(cid:4)(cid:28)(cid:21)(cid:7)(cid:18)(cid:14)(cid:5)(cid:27)(cid:7)(cid:16)*(cid:5)(cid:7)(cid:28)(cid:4)(cid:16)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)‘~*(cid:8)(cid:5)(cid:19)(cid:7)(cid:11)(cid:22)(cid:5)
east-west trending ridge.
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Work was undertaken between March and May 2012 with six diamond drill holes
completed for a total of 1,058m, and 8 trenches completed for a total of 848m.
The programme was successful in intersecting the main Ginka iron formation a
number of times, with true thicknesses of up to 41m thick in trenches on the west
side of the 30km long ridge, and generally thinner on the east.
The geological team recommended further drilling and trenching work, with a
(cid:17)(cid:7)(cid:24)(cid:18)(cid:14)(cid:5)(cid:7)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:27)(cid:4)(cid:14)(cid:2)(cid:5)(cid:14)(cid:21)(cid:20)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:16)(cid:21)(cid:20)(cid:22)(cid:4)(cid:30)(cid:5)(cid:2)(cid:7)(cid:5)(cid:17)(cid:18)(cid:16)(cid:2)(cid:3)(cid:4)(cid:16)(cid:5)(cid:20)(cid:4)(cid:15)(cid:11)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:4)+(cid:2)(cid:4)(cid:11)(cid:2)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:2)(cid:3)(cid:21)(cid:24)*(cid:11)(cid:4)(cid:14)(cid:14)(cid:5)(cid:7)(cid:17)(cid:5)
the IF.
A total of 90 samples from holes GKDH-001 and GKDH-002 were submitted for
Davis Tube Tests (“DTT”). The purpose of DTT is to determine whether a magnetic
iron ore (in this case magnetite) is amenable to magnetic upgrading, in order to
yield a saleable magnetite concentrate.
The DTT work showed that it is possible to obtain concentrate samples with a Fe
grade averaging 60% to 68% Fe in concentrates across the 90 samples. However,
SiO2 grades remained higher than desirable for a magnetite concentrate (4.8
(cid:158)(cid:5)(cid:2)(cid:7)(cid:5)W‘(cid:158)(cid:5)(cid:16)(cid:10)(cid:11)(cid:22)(cid:4)"(cid:5)(cid:21)(cid:11)(cid:5)(cid:8)(cid:10)(cid:11)(cid:12)(cid:5)(cid:14)(cid:10)(cid:8)(cid:9)(cid:19)(cid:4)(cid:14)(cid:25)(cid:5)(cid:29)(cid:5)(cid:15)(cid:11)(cid:4)(cid:16)(cid:5)(cid:22)(cid:16)(cid:21)(cid:11)(cid:20)(cid:5)(cid:8)(cid:10)(cid:12)(cid:5)(cid:23)(cid:4)(cid:5)(cid:11)(cid:4)(cid:24)(cid:4)(cid:14)(cid:14)(cid:10)(cid:16)(cid:12)(cid:5)(cid:2)(cid:7)(cid:5)(cid:19)(cid:21)(cid:23)(cid:4)(cid:16)(cid:10)(cid:2)(cid:4)(cid:5)
magnetite grains from the adjacent silica grains. It should be noted that these
DTT samples were ground to 75 micron size, and it is normal for magnetite ores to
(cid:23)(cid:4)(cid:5)(cid:22)(cid:16)(cid:7)(cid:18)(cid:11)(cid:20)(cid:5)(cid:15)(cid:11)(cid:4)(cid:16)(cid:5)(cid:2)(cid:3)(cid:10)(cid:11)(cid:5)(cid:2)(cid:3)(cid:10)(cid:2)(cid:5)(cid:2)(cid:7)(cid:5)(cid:9)(cid:16)(cid:7)(cid:9)(cid:4)(cid:16)(cid:19)(cid:12)(cid:5)(cid:14)(cid:4)(cid:9)(cid:10)(cid:16)(cid:10)(cid:2)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:14)(cid:21)(cid:19)(cid:21)(cid:24)(cid:10)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:8)(cid:10)(cid:22)(cid:11)(cid:4)(cid:2)(cid:21)(cid:2)(cid:4)(cid:5)(cid:22)(cid:16)(cid:10)(cid:21)(cid:11)(cid:14)(cid:25)(cid:5)
Overall, the DTT work is as a successful stage in establishing the possibility of
upgrading the Ginka magnetite ore to a saleable product.
Core
Values
Vision
To build a world class gold company.
Mission
Our initial mission is to develop a world-class gold province in eastern Liberia. We
aim to achieve this starting from systematic grass roots exploration, right through
to building and running gold mines there, whilst maintaining the highest levels of
social and environmental responsibility.
Core Values
Safety is paramount: the health and safety of our staff is vital and every measure
is taken to ensure that our progress is delivered without compromise to the well-
being of our employees.
Respect for the team: everyone is treated with respect, trust and dignity. In return,
honesty and integrity are expected of all employees.
Dynamic in our approach: we will deliver on our commitments through initiative,
energy and persistence, working hard to achieve the best results in the minimum
of time.
Embrace innovation: everyone is expected to think for themselves, to promote
good ideas and to use technology to aid our work. Every gold exploration and
development project is unique; we will constantly encourage people to ‘think
outside of the box’.
Act with responsibility: we are committed to working in the most responsible
manner possible, by respecting the local customs and traditions, by adhering to
the laws of the countries in which we work and by following international best
practice.
Highest regard for the people and environment: we aim to be pillars of the
communities in which we work, to incorporate the individual stakeholders
throughout the exploration development process and never to neglect the
precious environment.
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Dan with the geo team at Dugbe
Camp
Core samples awaiting dispatch
Julian Barnes and Louisa
examining core samples
Operational
Summary
Human Resources
In the past twelve months Hummingbird has continued to expand in Liberia and
now has in excess of 200 full time employees, including our 17 expatriate staff
who come from a variety of countries including Canada, the United Kingdom,
Q(cid:21)(cid:8)(cid:23)(cid:10)(cid:23)(cid:27)(cid:4)(cid:30)(cid:5)(cid:159)(cid:22)(cid:10)(cid:11)(cid:20)(cid:10)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:129)(cid:10)(cid:20)(cid:10)(cid:22)(cid:10)(cid:14)(cid:24)(cid:10)(cid:16)(cid:25)(cid:5)}(cid:4)(cid:5)(cid:10)(cid:19)(cid:14)(cid:7)(cid:5)(cid:4)(cid:8)(cid:9)(cid:19)(cid:7)(cid:12)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:11)(cid:18)(cid:8)(cid:23)(cid:4)(cid:16)(cid:14)(cid:5)
(cid:7)(cid:17)(cid:5)(cid:19)(cid:10)(cid:23)(cid:7)(cid:18)(cid:16)(cid:4)(cid:16)(cid:14)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:14)(cid:9)(cid:4)(cid:24)(cid:21)(cid:15)(cid:24)(cid:5)(cid:14)(cid:3)(cid:7)(cid:16)(cid:2)^(cid:2)(cid:4)(cid:16)(cid:8)(cid:5)(cid:24)(cid:7)(cid:11)(cid:2)(cid:16)(cid:10)(cid:24)(cid:2)(cid:14)(cid:5)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:30)(cid:5)(cid:14)(cid:18)(cid:24)(cid:3)(cid:5)(cid:10)(cid:14)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)
exploration tasks and logistical infrastructure projects.
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of an exploration manager whose role it is to implement and manage the
exploration activities designed by the technical director and chief geologist. In
addition, we are delighted to now employ four Liberian junior geologists who
have all recently graduated from the University of Liberia having been sponsored
by Hummingbird over the last four years through their geological undergraduate
(cid:24)(cid:7)(cid:18)(cid:16)(cid:14)(cid:4)(cid:25)(cid:5):(cid:11)(cid:5)(cid:14)(cid:18)(cid:9)(cid:9)(cid:7)(cid:16)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:7)(cid:18)(cid:16)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:14)(cid:2)(cid:14)(cid:5)(cid:27)(cid:4)(cid:5)(cid:3)(cid:10)(cid:28)(cid:4)(cid:5)W_(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:10)(cid:14)(cid:14)(cid:21)(cid:14)(cid:2)(cid:10)(cid:11)(cid:2)(cid:14)(cid:5)(cid:27)(cid:3)(cid:7)(cid:5)(cid:3)(cid:4)(cid:19)(cid:9)(cid:5)(cid:8)(cid:10)(cid:11)(cid:10)(cid:22)(cid:4)(cid:5)
(cid:10)(cid:11)(cid:20)(cid:5)(cid:21)(cid:8)(cid:9)(cid:19)(cid:4)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:28)(cid:10)(cid:16)(cid:21)(cid:7)(cid:18)(cid:14)(cid:5)(cid:22)(cid:4)(cid:7)(cid:19)(cid:7)(cid:22)(cid:21)(cid:24)(cid:10)(cid:19)(cid:5)(cid:9)(cid:16)(cid:7)(cid:22)(cid:16)(cid:10)(cid:8)(cid:14)(cid:30)(cid:5)(cid:10)(cid:14)(cid:5)(cid:27)(cid:4)(cid:19)(cid:19)(cid:5)(cid:10)(cid:14)(cid:5)W_(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:2)(cid:4)(cid:24)(cid:3)(cid:11)(cid:21)(cid:24)(cid:21)(cid:10)(cid:11)(cid:14)(cid:5)
who conduct most of the degree of concurrent exploration activity across
different license areas, demonstrated by the fact that on occasions we have
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different exploration targets.
In April 2012 we appointed Julian Barnes as Head of Project Development on
a consultancy basis. Julian co-founded Resource Service Group (“RSG”), an
international exploration and mining consultancy, in 1987. RSG subsequently
merged with Global Mining Services to form RSG Global, which was then
acquired by Coffey Mining Limited in 2006. From 2004 until 2010, Julian was
Executive Vice President of Dundee Precious Metals Inc., and he is currently a
director of Serbia-focused Avala Resources Ltd. He has extensive international
experience including over 15 years in West Africa. Julian has also worked on
many bankable feasibility studies and has undertaken numerous technical
due diligence assessments for resource banking institutions. This appointment
(cid:21)(cid:14)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:10)(cid:14)(cid:5)(cid:21)(cid:2)(cid:5)(cid:10)(cid:19)(cid:19)(cid:7)(cid:27)(cid:14)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:20)(cid:16)(cid:21)(cid:28)(cid:4)(cid:5)(cid:17)(cid:7)(cid:16)(cid:27)(cid:10)(cid:16)(cid:20)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:20)(cid:4)(cid:28)(cid:4)(cid:19)(cid:7)(cid:9)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:21)(cid:2)(cid:14)(cid:5)
existing ounces whilst also carrying out the same level of exploration activity
across its entire licence package.
Operational Capacity & Logistics
Hummingbird’s geological exploration work is still strongly supported by the
operations department which has the responsibility of organising and managing
(cid:2)(cid:3)(cid:4)(cid:5)(cid:14)(cid:18)(cid:9)(cid:9)(cid:19)(cid:12)(cid:5)(cid:24)(cid:3)(cid:10)(cid:21)(cid:11)(cid:5)(cid:14)(cid:12)(cid:14)(cid:2)(cid:4)(cid:8)(cid:5)(cid:2)(cid:7)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:30)(cid:5)(cid:17)(cid:18)(cid:4)(cid:19)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:19)(cid:18)(cid:23)(cid:16)(cid:21)(cid:24)(cid:10)(cid:11)(cid:2)(cid:14)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:28)(cid:4)(cid:3)(cid:21)(cid:24)(cid:19)(cid:4)(cid:5)[(cid:4)(cid:4)(cid:2)(cid:30)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)
(cid:2)(cid:27)(cid:7)(cid:5)(cid:17)(cid:7)(cid:16)(cid:27)(cid:10)(cid:16)(cid:20)(cid:5)(cid:23)(cid:10)(cid:14)(cid:4)(cid:14)(cid:5)(cid:31)](cid:16)(cid:4)(cid:4)(cid:11)(cid:28)(cid:21)(cid:19)(cid:19)(cid:4)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)Q(cid:27)(cid:4)(cid:20)(cid:16)(cid:18)"(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:15)(cid:4)(cid:19)(cid:20)(cid:5)(cid:24)(cid:10)(cid:8)(cid:9)(cid:14)(cid:30)(cid:5)(cid:24)(cid:7)(cid:8)(cid:8)(cid:18)(cid:11)(cid:21)(cid:24)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:14)(cid:5)
and vehicle maintenance.
Hummingbird’s grader
The company has recently invested in some additional road building and
maintenance equipment, including a Caterpillar 963 tracked loader, a
Caterpillar 140G grader and a Caterpillar 563 compactor.
These machines will enable us to carry out an enhanced level of road
maintenance work for our main arterial access into Dugbe, as well as conduct
additional access projects into new target areas as required. Furthermore, we
have also bought two Mercedes 1017 4x4 trucks to supersede our older MAN
4x4 truck, and these are already proving their worth on the regular resupply runs
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Finally, our logistics compound in Monrovia, with its modern vehicle workshop,
(cid:9)(cid:10)(cid:16)(cid:2)(cid:14)(cid:5)(cid:14)(cid:2)(cid:7)(cid:16)(cid:4)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:7)(cid:17)(cid:15)(cid:24)(cid:4)(cid:14)(cid:30)(cid:5)(cid:21)(cid:14)(cid:5)(cid:10)(cid:19)(cid:16)(cid:4)(cid:10)(cid:20)(cid:12)(cid:5)(cid:9)(cid:16)(cid:7)(cid:28)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:4)(cid:5)(cid:10)(cid:5)(cid:17)(cid:10)(cid:11)(cid:2)(cid:10)(cid:14)(cid:2)(cid:21)(cid:24)(cid:5)(cid:10)(cid:20)(cid:20)(cid:21)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:2)(cid:7)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)
operational supporting platform which the company depends on.
Speed of exploration is key, and all of the operations team help to streamline this
(cid:9)(cid:16)(cid:7)(cid:24)(cid:4)(cid:14)(cid:14)(cid:5)(cid:14)(cid:7)(cid:5)(cid:2)(cid:3)(cid:10)(cid:2)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:5)(cid:27)(cid:7)(cid:16)*(cid:14)(cid:5)(cid:17)(cid:10)(cid:14)(cid:2)(cid:4)(cid:16)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:8)(cid:7)(cid:16)(cid:4)(cid:5)(cid:4)(cid:17)(cid:15)(cid:24)(cid:21)(cid:4)(cid:11)(cid:2)(cid:19)(cid:12)(cid:25)(cid:5)
Capitol Building, Monrovia
Government
The re-election of President Ellen Johnson Sirleaf in February 2012 is a major
step in consolidating the democratic process in Liberia. In her second term it is
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(cid:7)(cid:17)(cid:5)(cid:3)(cid:4)(cid:16)(cid:5)(cid:22)(cid:7)(cid:28)(cid:4)(cid:16)(cid:11)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:22)(cid:16)(cid:7)(cid:27)(cid:5)(cid:21)(cid:11)(cid:5)(cid:24)(cid:7)(cid:11)(cid:15)(cid:20)(cid:4)(cid:11)(cid:24)(cid:4)(cid:5)(cid:10)(cid:14)(cid:5)(cid:10)(cid:5)(cid:19)(cid:4)(cid:10)(cid:20)(cid:21)(cid:11)(cid:22)(cid:5)(cid:4)(cid:24)(cid:7)(cid:11)(cid:7)(cid:8)(cid:21)(cid:24)(cid:5)(cid:9)(cid:7)(cid:27)(cid:4)(cid:16)(cid:5)(cid:21)(cid:11)(cid:5)
Africa. Hummingbird continues to have a good relationship with the Liberian
government. Negotiations for our two Mineral Development Agreements are
ongoing and the Company will update the market as soon as there are any
material developments. In the meantime, the Ministry of Lands, Mines and Energy
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process is complete.
Hummingbird has played a pivotal role in hosting three conferences on
investment in Liberia. We were a key sponsor of the Liberia Mining, Energy and
Petroleum conference, held in Monrovia during 2011, which was attended
by a number of major exploration and mining companies looking at moving
into Liberia. Hummingbird also were partners in hosting the ‘Liberia day’ in July
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in Liberia. In September 2012 Hummingbird sponsored the London-Liberia
conference for the second year running.
Monrovia City Hall
Monrovia’s busy streets
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49
Corporate Social
Responsibility
Big Picture View
At Hummingbird Resources we believe that it is our duty to work across all
of our operations in the most socially and environmentally responsible way
possible. From board level through to junior staff working on the ground, every
Hummingbird employee recognises the importance of working safely and
respecting the environment and the people of the country we are privileged to
work in.
Hummingbird Resources:
(cid:160)(cid:5) Provides a safe working environment and invests in the skills of our workforce
(cid:160)(cid:5)
Engages and consults with local communities, working towards development
together
(cid:160)(cid:5) Respects and protects the natural environment
Tented accommodation at
Dugbe Camp
Hummingbird Resources invests directly in the people of Liberia. We believe that
this is the greatest lasting contribution that can be made. Our education and
training programmes are central to our CSR strategy allowing us to operate safely
and sustainably. By developing skills in our workforce, Hummingbird’s activities will
have positive multiplier effects to the wider population.
Children at Tuzon Village
In July 2012 the company began a wholesale review of its corporate social
responsibility activities, processes and systems, and has employed the use
of internationally renowned consultants, Wardell Armstrong International,
to help deliver this going forward. As well as ensuring complete regulatory
compliance, Hummingbird Resources intends to conduct all of its practices in
line with requirements set forth by the International Finance Corporation (“IFC”)
Performance Standards, as well as other standards of best practice such as the
ICMM 10 principles for sustainable development.
Although Liberia’s developmental and socio-economic challenges continue,
our actions as a responsible company have a long-term impact by supporting
sustainable growth, especially within the rural areas where we operate. Living
and working in Liberia is a great privilege and we aim to leave a legacy which
endures beyond the life of a mine, economically, environmentally and socially.
A girl pumps the Hummingbird
well at Tuzon Village
The Tuzon Village well
People
Hummingbird is proud to be one of Liberia’s largest employers with over 90%
of our workforce made up of Liberian nationals. As the Company grows and
our operations expand, employing Liberian nationals remains a central pillar
of our human resources policy. As part of this commitment, from 2012 we have
sponsored an additional 20 students to study geology and mining engineering
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this scheme as fully employed junior geologists within Hummingbird’s geological
team.
Hummingbird Resources follows high standards of health and safety, providing
a safe and comfortable work space to all of our employees. We assess risks in
our operations and ensure that our staff are adequately trained and equipped
for the job. We are also undertaking activities to embed a culture of health and
safety in the wider community, helping to improve road safety and extending
training and education to local communities.
Hummingbird invests in all of its employees as individuals, providing regular
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helps to develop the skills of each individual, promotes personal growth and
development, and increases opportunities for career progression. Hummingbird
takes the welfare of its employees very seriously and our provision of medical
cover for all employees is just one example of this.
Key Facts:
Since Hummingbird Resources began operations in Liberia, we have been
compliant with the Liberia Extractive Industries Transparency Initiative (LEITI), a
(cid:14)(cid:24)(cid:3)(cid:4)(cid:8)(cid:4)(cid:5)(cid:20)(cid:4)(cid:14)(cid:21)(cid:22)(cid:11)(cid:4)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:4)(cid:11)(cid:14)(cid:18)(cid:16)(cid:4)(cid:5)(cid:15)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:5)(cid:2)(cid:16)(cid:10)(cid:11)(cid:14)(cid:9)(cid:10)(cid:16)(cid:4)(cid:11)(cid:24)(cid:12)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:10)(cid:24)(cid:24)(cid:7)(cid:18)(cid:11)(cid:2)(cid:10)(cid:23)(cid:21)(cid:19)(cid:21)(cid:2)(cid:12)(cid:5)(cid:2)(cid:7)(cid:5)(cid:10)(cid:11)(cid:5)
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compliant with the global EITI, and we are proud to support this initiative.
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(cid:24)(cid:16)(cid:10)(cid:17)(cid:9)(cid:15)(cid:25)(cid:6)Claus T Massaquoi, Finance Supervisor
51
I am a Liberian from Grand Cape Mount County
and of the Vai ethnic tribe. I enrolled at the Liberia
Refugee Youth High School in 1993 in the Ivory Coast
where I completed my senior high school education
in 1997. In 2002, I enrolled at the University of Liberia
to study accounting with emphasis in economics. In
2009, I graduated at the top of the Éclat class.
In 2010, I joined the Hummingbird Resources family
as an Assistant Accountant. I wanted to show my
willingness to work and to build my own human
capacity, I was able to adapt to the systems of my new home; where I worked in both
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able to train more than three people in the area of accountancy. In the middle of 2012 I
was promoted to Finance Supervisor, with responsibility for overseeing the accounts in the
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:(cid:5)(cid:17)(cid:4)(cid:4)(cid:19)(cid:5)(cid:2)(cid:3)(cid:10)(cid:2)(cid:5)’(cid:18)(cid:8)(cid:8)(cid:21)(cid:11)(cid:22)(cid:23)(cid:21)(cid:16)(cid:20)(cid:5)(cid:127)(cid:4)(cid:14)(cid:7)(cid:18)(cid:16)(cid:24)(cid:4)(cid:14)(cid:5)(cid:3)(cid:10)(cid:14)(cid:5)(cid:4)(cid:8)(cid:9)(cid:7)(cid:27)(cid:4)(cid:16)(cid:4)(cid:20)(cid:5)(cid:8)(cid:4)(cid:5)(cid:15)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:19)(cid:12)(cid:30)(cid:5)(cid:8)(cid:7)(cid:16)(cid:10)(cid:19)(cid:19)(cid:12)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:14)(cid:7)(cid:24)(cid:21)(cid:10)(cid:19)(cid:19)(cid:12)(cid:25)(cid:5):(cid:5)(cid:10)(cid:8)(cid:5)
looking forward to future training both at work and through sponsorship by Hummingbird at
the University of Liberia to greater assist my work, to enable Hummingbird to achieve its goal,
build the human capacity of other employees and contribute to the rebuilding of my dear
country Liberia.
Community Relations & Development
We live and work with the communities that surround our operations. Alongside
offering numerous employment and training opportunities to local people, we
conduct our exploration activities responsibly in light of these communities. We
recognise that some of our operations could have some negative impact, but
(cid:27)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:2)(cid:16)(cid:12)(cid:5)(cid:2)(cid:7)(cid:5)(cid:8)(cid:21)(cid:11)(cid:21)(cid:8)(cid:21)(cid:14)(cid:4)(cid:5)(cid:2)(cid:3)(cid:21)(cid:14)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:24)(cid:7)(cid:8)(cid:9)(cid:4)(cid:11)(cid:14)(cid:10)(cid:2)(cid:4)(cid:5)(cid:21)(cid:17)(cid:5)(cid:11)(cid:4)(cid:24)(cid:4)(cid:14)(cid:14)(cid:10)(cid:16)(cid:12)(cid:25)(cid:5)(cid:6)(cid:4)(cid:11)(cid:2)(cid:16)(cid:10)(cid:19)(cid:5)(cid:2)(cid:7)(cid:5)(cid:7)(cid:18)(cid:16)(cid:5)(cid:14)(cid:2)(cid:16)(cid:10)(cid:2)(cid:4)(cid:22)(cid:12)(cid:5)
is the need to communicate clearly and effectively, engaging pro-actively
with communities and their representatives. To this end we employ a number
of techniques for communication including regular face-to-face meetings, a
‘grievance mechanism’ using suggestion boxes placed in local community
meeting spots, as well as more informal events such as football matches and
social occasions.
In the past year we have established a ‘grievance mechanism’ designed
to engage, listen and respond appropriately and effectively should any
complaint arise from a local community. All meetings and interactions with
local communities are logged, categorised, and reported back to senior
management level. We believe that it is important to engage actively with our
surrounding communities at the exploration stage, helping us to gain a social
licence to operate both now and for our future operations. To facilitate this, we
have completed full stakeholder audits to better understand the communities
and identify key representatives of various groups. This will form the foundation
of future work to ensure that good relations are maintained throughout the
communities.
A major focus of our development work has focussed on roads and infrastructure,
in line with both local and national government agendas. The renovation and
maintenance of public roads and bridges provides much sought after access for
many communities. We have also helped in a number of smaller projects in the
communities around our exploration projects. Examples include the construction
and rehabilitation of wells to provide clean drinking water and town halls to help
facilitate community communication.
One essential aspect of maintaining good relationships is our informal interactions
with the community. Often this is through regular football matches against
surrounding communities or other social events. Sport can be a fantastic way to
bring communities together, in light of this we are sponsoring the Sinoe County
Football Team, providing kit and helping to arrange matches.
Sinoe County football team
Key Facts
(cid:2)(cid:3) 120km of public roads rehabilitated in and around our project areas
(cid:2)(cid:3) More than 40 bridges built or renovated
(cid:2)(cid:3) 6 wells and hand pumps dug
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Environment
South Eastern Liberia is home to one of the most intact forest ecosystems in West
Africa as part of the Upper Guinean Forest. The region is located in a biodiversity
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(cid:129)(cid:18)(cid:24)(cid:3)(cid:5)(cid:7)(cid:17)(cid:5)\(cid:21)(cid:23)(cid:4)(cid:16)(cid:21)(cid:10)(cid:13)(cid:14)(cid:5)[(cid:7)(cid:16)(cid:10)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:17)(cid:10)(cid:18)(cid:11)(cid:10)(cid:5)(cid:21)(cid:14)(cid:5)(cid:18)(cid:11)(cid:20)(cid:4)(cid:16)(cid:5)(cid:2)(cid:3)(cid:16)(cid:4)(cid:10)(cid:2)(cid:5)(cid:10)(cid:17)(cid:2)(cid:4)(cid:16)(cid:5)(cid:12)(cid:4)(cid:10)(cid:16)(cid:14)(cid:5)(cid:7)(cid:17)(cid:5)(cid:9)(cid:7)(cid:7)(cid:16)(cid:19)(cid:12)(cid:5)(cid:8)(cid:10)(cid:11)(cid:10)(cid:22)(cid:4)(cid:20)(cid:5)
concession agreements and the poaching and exploitation of the forest
ecosystem caused by the desperation of war. As the mining, agriculture
and forestry sectors continue to expand across the country it is essential that
companies recognise the responsibility to maintain and restore the unique
environment of Liberia.
Some 30km from Greenville is Sapo National Park. The country’s only park
(cid:21)(cid:14)(cid:5)(cid:19)(cid:7)(cid:24)(cid:10)(cid:2)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:5)(cid:10)(cid:5)(cid:23)(cid:21)(cid:7)(cid:20)(cid:21)(cid:28)(cid:4)(cid:16)(cid:14)(cid:21)(cid:2)(cid:12)(cid:5)(cid:3)(cid:7)(cid:2)(cid:14)(cid:9)(cid:7)(cid:2)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:17)(cid:7)(cid:16)(cid:8)(cid:14)(cid:5)(cid:10)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:9)(cid:16)(cid:7)(cid:9)(cid:7)(cid:16)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:7)(cid:17)(cid:5)(cid:10)(cid:11)(cid:5)
ecosystem of global importance. As Liberia emerges in the 21st century, private
sector companies such as Hummingbird have a unique opportunity to aid and
facilitate conservation in the region.
Together with the Pygmy Hippo Foundation (“PHF”), we are working to
strengthen governance of the Sapo National Park and increase the number
of protected areas in this region. As we look forward to 2013 and beyond,
we believe that this work, in partnership with national regulatory bodies and
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capacity for the conservation of this precious ecosystem.
Whilst our exploration activities currently have minimal effect on the environment,
we are conscious of any impact that our work may have and we therefore follow
operating procedures that are in line with international standards. Following
(cid:2)(cid:3)(cid:4)(cid:5):%(cid:6)(cid:5)(cid:153)(cid:8)(cid:21)(cid:2)(cid:21)(cid:22)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:3)(cid:21)(cid:4)(cid:16)(cid:10)(cid:16)(cid:24)(cid:3)(cid:12)(cid:13)(cid:5)(cid:27)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:10)(cid:21)(cid:8)(cid:5)(cid:2)(cid:7)(cid:5)(cid:16)(cid:4)(cid:20)(cid:18)(cid:24)(cid:4)(cid:5)(cid:10)(cid:11)(cid:12)(cid:5)(cid:21)(cid:8)(cid:9)(cid:10)(cid:24)(cid:2)(cid:5)(cid:7)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:11)(cid:10)(cid:2)(cid:18)(cid:16)(cid:10)(cid:19)(cid:5)
environment, and where not entirely possible we minimise and will compensate
or offset our activities.
We have extensive policies and procedures to manage our impact on the
natural environment. Our exploration activity standard operating procedures
are grounded in the E3 (Environmental Excellence in Exploration) Standard
provided by the Prospectors and Developers Association of Canada (“PDAC”).
;(cid:7)(cid:14)(cid:2)(cid:5)(cid:4)+(cid:9)(cid:19)(cid:7)(cid:16)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:27)(cid:4)(cid:5)(cid:2)(cid:10)*(cid:4)(cid:5)(cid:14)(cid:2)(cid:4)(cid:9)(cid:14)(cid:5)(cid:2)(cid:7)(cid:5)(cid:16)(cid:4)(cid:14)(cid:2)(cid:7)(cid:16)(cid:4)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:11)(cid:10)(cid:2)(cid:18)(cid:16)(cid:10)(cid:19)(cid:5)(cid:4)(cid:11)(cid:28)(cid:21)(cid:16)(cid:7)(cid:11)(cid:8)(cid:4)(cid:11)(cid:2)(cid:5)(cid:23)(cid:12)(cid:5)(cid:23)(cid:10)(cid:24)*(cid:15)(cid:19)(cid:19)(cid:21)(cid:11)(cid:22)(cid:5)
all trenches, ensuring that drill locations are left clean and that all waste such as
drill water run-off is properly cleared, allowing the natural environment to restore
these areas. As with health and safety, we take time to train all employees in
environmentally responsible practices, and regularly review the impact of our
operations.
K(cid:4)(cid:14)(cid:9)(cid:21)(cid:2)(cid:4)(cid:5)(cid:23)(cid:4)(cid:21)(cid:11)(cid:22)(cid:5)(cid:7)(cid:17)(cid:5)(cid:24)(cid:19)(cid:4)(cid:10)(cid:16)(cid:5)(cid:22)(cid:19)(cid:7)(cid:23)(cid:10)(cid:19)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:24)(cid:4)(cid:30)(cid:5)(cid:28)(cid:4)(cid:16)(cid:12)(cid:5)(cid:19)(cid:21)(cid:2)(cid:2)(cid:19)(cid:4)(cid:5)(cid:21)(cid:11)(cid:17)(cid:7)(cid:16)(cid:8)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:5)(cid:21)(cid:14)(cid:5)(cid:3)(cid:4)(cid:19)(cid:20)(cid:5)(cid:7)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)
biodiversity and ecosystem services provided by this area. As part of our progress
towards mine development, Hummingbird Resources will soon commence a
full Environmental and Social Impact Assessment (“ESIA”) to better understand
the local environment. The results of this will help to inform our own and other
national and international efforts to conserve vital biodiversity and ecosystem
services in the area.
Pygmy Hippo
Foundation
Vision
In July 2011 we founded the Pygmy Hippo Foundation, a UK registered charity,
dedicated to improving conservation in Liberia. Through the re-development
of the Sapo National Park, enabling broader conservation initiatives in the
surrounding forest areas and facilitating education programmes, the Pygmy
Hippo Foundation aims to promote the conservation, preservation and
protection of endangered species such as the pygmy hippo in their natural
environment.
The Zoological Society of
London estimates that there are
less than 2,000 pygmy hippos
remaining in the wild. The
majority of these are believed
to be located in southeast
Liberia’s Sapo National Park.
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species, the Pygmy Hippo
Foundation intends to
strengthen the capacity and
efforts of the Environmental
Protection Agency (“EPA”) and
the Forestry Development
Authority (“FDA”) not only in park operations, but also in raising the status of
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levels. Central to our endeavour is partnering with government bodies as well as
both local and international NGOs, and in this regard the last 12 months have
seen some exciting developments.
Sapo National Park Key Facts
(cid:2)(cid:3)
(cid:2)(cid:3)
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Located in Sinoe County, South Eastern Liberia
(cid:2)(cid:3) 1,804km2
(cid:2)(cid:3) Home to the majority of the world’s remaining pygmy hippos
(cid:2)(cid:3) ;(cid:10)(cid:16)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:159)(cid:9)(cid:9)(cid:4)(cid:16)(cid:5)](cid:18)(cid:21)(cid:11)(cid:4)(cid:10)(cid:11)(cid:5)(cid:17)(cid:7)(cid:16)(cid:4)(cid:14)(cid:2)(cid:5)(cid:152)(cid:5)(cid:10)(cid:5)(cid:23)(cid:21)(cid:7)(cid:20)(cid:21)(cid:28)(cid:4)(cid:16)(cid:14)(cid:21)(cid:2)(cid:12)(cid:5)(cid:3)(cid:7)(cid:2)(cid:14)(cid:9)(cid:7)(cid:2)(cid:5)(cid:7)(cid:17)(cid:5)(cid:22)(cid:19)(cid:7)(cid:23)(cid:10)(cid:19)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:24)(cid:4)
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Progress in Our First Year
This year we have made progress in identifying and assessing the current status
of the management of the park’s area, and the demographics and ecosystem
of the region. Our stakeholder consultations have given us a much more
informed view of the shape of the future for the Foundation. Earlier this year
we commissioned an international expert to undertake a scoping study of the
social and environmental factors in the area in which the hippo is found. This
has helped to contextualise the problem more precisely and to highlight the
potential opportunities and challenges that may exist.
Some Key Findings of the Scoping Study (January 2012):
(cid:2)(cid:3) Very little is known about the pygmy hippo (Choeropsis liberiensis) due
to its nocturnal and reclusive nature, and no wide-scale survey has been
undertaken
(cid:2)(cid:3)
The main threats to the pygmy hippo are hunting (both commercial and
traditional) and habitat loss
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biodiversity and ecosystem services
(cid:2)(cid:3) Around 85% of Liberia’s forest is outside of existing and proposed protected
areas. Working on strengthening and expanding the protected area network,
alleviating poverty (especially in rural areas) and raising awareness at all levels
is vital for conservation in Liberia
In August 2012 we teamed with
the Leadership for Conservation
in Africa (“LCA”) to investigate
concept strategies for the
Foundation with key
stakeholders in Liberia.
Government agencies, world-
renowned NGOs and local
NGOs with extensive
experience in the Liberian
conservation sector all
gathered for a series of
meetings which culminated in a workshop in Monrovia to decide how best we
can move the Foundation forward. Some suggestions included:
(cid:2)(cid:3)
Employment and training of existing ‘traditional’ foresters
(cid:2)(cid:3) Helping to fund research activities in the area by other NGOs
(cid:2)(cid:3) Running community education programmes
(cid:2)(cid:3) Aiding the efforts of NGO and governmental conservation groups to formalise
current plans for other proposed protected areas
The overriding concept discussed was that of a Public Private Partnership (PPP)
for the management of the Sapo National Park. The partnership, supported by
the LCA, would be between the PHF and the Government of Liberia. Although
still in conceptual stages, it represents a very exciting opportunity. The LCA has
considerable experience in national park rehabilitation and management of
protected areas through their other projects in Sub-Saharan Africa. Together,
the LCA and PHF are in the process of producing a full business plan for the
Foundation’s activities based on the concept of a PPP. Later this year the PHF
is on course to sign a Memorandum of Understanding with the government to
expressly codify the scope and nature of this agreement.
Finally, In October 2012, Hummingbird is hosting the Pygmy Hippo Ball at the
Natural History Museum in London. This event will be a high-level platform to
introduce the Pygmy Hippo Foundation to 400 guests, and to kick start the PHF’s
fundraising activities.
Leadership for Conservation in Africa
The Leadership for Conservation in Africa was established by South African
National Parks, with support from Gold Fields Ltd and the International Union for
Conservation of Nature. It held its inaugural meeting in August 2006, and works to
establish links between business and conservation.
The LCA’s vision is ‘to harness the collective will and capacity of business
and conservation leaders for sustainable conservation-led socio-economic
development in Africa.’ By the year 2020, the LCA plans to save 20 million
hectares of African rainforest and currently has membership from 16 African
countries.
www.lcaafrica.org
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57
Liberia
Background
Liberia lies on the coast of West Africa, sharing borders with Côte d’Ivoire, Guinea
and Sierra Leone. With the exception of the capital city Monrovia, it is a sparsely
populated country with a total population of 4 million on a land area of over
100,000 square kilometres. Liberia was founded in 1847 by emancipated slaves
from the United States and is one of only two African countries not to have roots
in European colonisation. The country enjoyed more than 100 years of peace
before 14 years of intermittent civil war at the end of the 20th Century. Since
then there has been considerable political and economic transformation. A
new Liberia is now attracting impressive international private sector investment –
estimates suggest upwards of US$17 billion since 2006.
The country has an extensive history in the natural resource sector. Since 1926
Firestone have owned and operated the world’s largest rubber plantation, and
before the civil war Liberia was the world’s 3rd largest producer of iron ore.
Today the country is focussing its efforts on reforming the economic system and
rebuilding vital infrastructure to support growth. We have a huge opportunity
(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:7)(cid:18)(cid:16)(cid:5)(cid:153)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:8)(cid:7)(cid:28)(cid:4)(cid:16)(cid:13)(cid:5)(cid:10)(cid:20)(cid:28)(cid:10)(cid:11)(cid:2)(cid:10)(cid:22)(cid:4)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:4)(cid:5)(cid:27)(cid:7)(cid:16)*(cid:21)(cid:11)(cid:22)(cid:5)(cid:21)(cid:11)(cid:5)\(cid:21)(cid:23)(cid:4)(cid:16)(cid:21)(cid:10)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:2)(cid:7)(cid:5)(cid:3)(cid:4)(cid:19)(cid:9)(cid:5)(cid:20)(cid:4)(cid:28)(cid:4)(cid:19)(cid:7)(cid:9)(cid:5)
industries far beyond their pre war levels.
The coastline north of Greenville
Economic Growth & Political Stability
%(cid:7)(cid:19)(cid:19)(cid:7)(cid:27)(cid:21)(cid:11)(cid:22)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:9)(cid:4)(cid:10)(cid:24)(cid:4)(cid:5)(cid:20)(cid:4)(cid:10)(cid:19)(cid:5)(cid:21)(cid:11)(cid:5)_~~‘(cid:30)(cid:5)(cid:137)(cid:19)(cid:19)(cid:4)(cid:11)(cid:5)¡(cid:7)(cid:3)(cid:11)(cid:14)(cid:7)(cid:11)(cid:5)?(cid:21)(cid:16)(cid:19)(cid:4)(cid:10)(cid:17)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:27)(cid:7)(cid:8)(cid:10)(cid:11)(cid:5)(cid:21)(cid:11)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)
history of Africa to become an elected head of state in 2006 and was recently
re-elected for a second six-year presidential term in January 2012. Internationally,
she is renowned for being a recipient of the 2011 Nobel Peace Prize, eliminating
$4bn of national debt and expanding free primary education to every child in
Liberia. Since 2003, peace and national security has been maintained. During this
period the country has undertaken two democratic elections and resisted the
spread of violence from neighbouring Cote d’Ivoire.
In the past few years Liberia has become one of West Africa’s fastest growing
economies, experiencing a 6.8% increase in economic growth in 2011, up from
5.6% in 2010, and the International Monetary Fund estimates real GDP growth will
rise to 8.8% in 2012. Despite this, Liberia remains one of the poorest countries in
the world, and unemployment (mostly youth) stands at around 80%.
However, the government is working hard to overcome this and the private
sector is set to play a central role. The government is strongly focussed on
establishing a competitive investment environment – examples include a
reduction in corporation tax and import duty exemptions for exploration and
mining companies. Alongside such reforms, the government is committed to
rebuilding infrastructure and reviving traditional sectors of economic growth
(cid:14)(cid:18)(cid:24)(cid:3)(cid:5)(cid:10)(cid:14)(cid:5)(cid:8)(cid:21)(cid:11)(cid:21)(cid:11)(cid:22)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:10)(cid:22)(cid:16)(cid:21)(cid:24)(cid:18)(cid:19)(cid:2)(cid:18)(cid:16)(cid:4)(cid:25)(cid:5)(cid:26)(cid:3)(cid:21)(cid:14)(cid:5)(cid:21)(cid:14)(cid:5)(cid:14)(cid:18)(cid:9)(cid:9)(cid:7)(cid:16)(cid:2)(cid:4)(cid:20)(cid:5)(cid:23)(cid:12)(cid:5)(cid:8)(cid:10)(cid:11)(cid:12)(cid:5)(cid:21)(cid:11)(cid:2)(cid:4)(cid:16)(cid:11)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:5)(cid:15)(cid:11)(cid:10)(cid:11)(cid:24)(cid:21)(cid:10)(cid:19)(cid:5)
institutions. The World Bank alone invested US$249.6 million in 2011.
Infrastructure in Liberia is rapidly improving: expansion of the main airport is
continuing, there are three operational deep-water ports, a newly rebuilt railway
line and hundreds of kilometres of newly laid tarmac road, such as that between
Monrovia and Buchanan which is soon to be completed. The government
allocated budget to the Ministry of Public Works has been steadily increasing
year on year, with a budget of US$33 million for 2010-2011. Such investment and
policy reform only makes it easier for us to operate as a company and move
towards development of a mine.
Liberia Key Facts
(cid:2)(cid:3)
Founded in 1847 by emancipated slaves from the USA
(cid:2)(cid:3) Capital city: Monrovia
(cid:2)(cid:3) (cid:29)(cid:17)(cid:16)(cid:21)(cid:24)(cid:10)(cid:13)(cid:14)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:17)(cid:4)(cid:8)(cid:10)(cid:19)(cid:4)(cid:5)(cid:9)(cid:16)(cid:4)(cid:14)(cid:21)(cid:20)(cid:4)(cid:11)(cid:2)(cid:5)(cid:16)(cid:4)^(cid:4)(cid:19)(cid:4)(cid:24)(cid:2)(cid:4)(cid:20)(cid:5)(cid:17)(cid:7)(cid:16)(cid:5)(cid:14)(cid:4)(cid:24)(cid:7)(cid:11)(cid:20)(cid:5){(cid:5)(cid:12)(cid:4)(cid:10)(cid:16)(cid:5)(cid:2)(cid:4)(cid:16)(cid:8)(cid:5)
in January 2012
(cid:2)(cid:3)
Three operating deep water ports, new roads and railways currently being
built. World Bank invested US$250 million into the country in 2011
(cid:2)(cid:3) Over 9 years of peace and increasing economic growth since the civil war –
the IMF predicts real GDP to increase by 8.8% in 2012
(cid:2)(cid:3)
Since 2007, Foreign Direct Investment (“FDI”) of greater than US$17 billion has
[(cid:7)(cid:27)(cid:4)(cid:20)(cid:5)(cid:21)(cid:11)(cid:2)(cid:7)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:24)(cid:7)(cid:18)(cid:11)(cid:2)(cid:16)(cid:12)
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59
Foreign Direct Investment
Liberia’s high levels of FDI are largely being driven by activity in agribusiness and
extractive industries. This is having positive knock-on effects for the country –
overall the mining sector’s contribution to GDP is estimated to have increased
from 1.1% in 2010 to 6.6% in 2011. In 2007 ArcelorMittal pledged to invest US$1.5
billion in the Nimba Iron Ore Project, and in September 2011 the company
began processing iron ore at its Buchanan facilities. In March 2012 ArcelorMittal
announced that it had already shipped 1 million tonnes of processed ore
and predicts that it will ship a total of 4 million tonnes of ore in 2012. This initial
investment is widely recognised as the catalyst for the large investments that
continue to follow.
Servestral, a major Russian steel company, has recently acquired 100% ownership
of the Putu Iron Ore Project in Eastern Liberia. The company has stated plans
to contribute to the redevelopment of the region including constructing a new
railway to the coast for the export of the ore, paving roads and renovation of the
deep-water port in Greenville, Sinoe County.
:(cid:11)(cid:5)(cid:4)(cid:10)(cid:16)(cid:19)(cid:12)(cid:5)_~W_(cid:5)(cid:10)(cid:5)(cid:14)(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:7)(cid:21)(cid:19)(cid:5)(cid:20)(cid:21)(cid:14)(cid:24)(cid:7)(cid:28)(cid:4)(cid:16)(cid:12)(cid:5)(cid:27)(cid:10)(cid:14)(cid:5)(cid:8)(cid:10)(cid:20)(cid:4)(cid:5)(cid:7)(cid:17)(cid:17)(cid:14)(cid:3)(cid:7)(cid:16)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)\(cid:21)(cid:23)(cid:4)(cid:16)(cid:21)(cid:10)(cid:30)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)
international oil giants such as Chevron and Africa Petroleum involved in
exploration work. These discoveries have the potential to further enhance the
outlook for the prosperity and stability of the nation.
Good governance of such large investments is vital for the country. Liberia
(cid:27)(cid:10)(cid:14)(cid:5)(cid:7)(cid:11)(cid:4)(cid:5)(cid:7)(cid:17)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:15)(cid:16)(cid:14)(cid:2)(cid:5)(cid:29)(cid:17)(cid:16)(cid:21)(cid:24)(cid:10)(cid:11)(cid:5)(cid:24)(cid:7)(cid:18)(cid:11)(cid:2)(cid:16)(cid:21)(cid:4)(cid:14)(cid:5)(cid:2)(cid:7)(cid:5)(cid:23)(cid:4)(cid:5)(cid:24)(cid:7)(cid:8)(cid:9)(cid:19)(cid:21)(cid:10)(cid:11)(cid:2)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:2)(cid:3)(cid:4)(cid:5)(cid:21)(cid:11)(cid:2)(cid:4)(cid:16)(cid:11)(cid:10)(cid:2)(cid:21)(cid:7)(cid:11)(cid:10)(cid:19)(cid:19)(cid:12)(cid:5)
renowned Extractive Industries Transparency Initiative (“EITI”) and established the
Liberian EITI (“LEITI”) in 2009. This is an initiative we are proud to be a part of. The
Liberian government’s early and continued commitment to this sends a strong
signal to the international community that Liberia is open for business.
Liberia Key Facts
(cid:2)(cid:3)
(cid:2)(cid:3)
(cid:2)(cid:3)
(cid:2)(cid:3)
(cid:2)(cid:3)
In September 2011, ArcelorMittal began extracting and processing iron ore
from the Nimba project
?(cid:21)(cid:22)(cid:11)(cid:21)(cid:15)(cid:24)(cid:10)(cid:11)(cid:2)(cid:5)(cid:7)(cid:17)(cid:17)(cid:14)(cid:3)(cid:7)(cid:16)(cid:4)(cid:5)(cid:7)(cid:21)(cid:19)(cid:5)(cid:20)(cid:21)(cid:14)(cid:24)(cid:7)(cid:28)(cid:4)(cid:16)(cid:12)(cid:5)(cid:27)(cid:21)(cid:2)(cid:3)(cid:5)(cid:6)(cid:3)(cid:4)(cid:28)(cid:16)(cid:7)(cid:11)(cid:5)(cid:10)(cid:11)(cid:20)(cid:5)(cid:29)(cid:17)(cid:16)(cid:21)(cid:24)(cid:10)(cid:5);(cid:4)(cid:2)(cid:16)(cid:7)(cid:19)(cid:4)(cid:18)(cid:8)(cid:5)(cid:24)(cid:18)(cid:16)(cid:16)(cid:4)(cid:11)(cid:2)(cid:19)(cid:12)(cid:5)
undertaking further exploration work
In 2011 the mining sector increased its share of the country’s GDP to 6.6%, up
from 1.1% in 2010
Servestal, one of the world’s largest steel companies, acquired 100% of the
Putu Iron Ore Project and plans to start producing in 2017
The Liberian Extractive Transparency Initiative continues to develop and
released its third report at the end of 2011
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Financial
Statements
61
Directors’ Report
Corporate Governance Report
Directors’ Responsibilities Statement
Independent Auditor’s Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Company Balance Sheet
Company Statement of Cash Flows
Company Statement of Changes in Equity
Notes to the Company Financial Statements
Directors, Advisors and Officers
DIRECTORS
ID Cockerill Non-Executive Chairman
SA Betts Non-Executive Director
MC Idiens Non-Executive Director
RJH Smith Non-Executive Director
DE Betts Executive Director
WBT Cook Executive Director
DA Pelham Executive Director
TR Hill Executive Director
SECRETARY
TR Hill
REGISTERED OFFICE
49-63 Spencer Street
Hockley
Birmingham
West Midlands
B18 6DE
AUDITOR
Baker Tilly UK Audit LLP
2 Whitehall Quay
Leeds
LS1 4HG
SOLICITORS
Gowlings LLP
15th Floor
125 Old Broad Street
London
EC2N 1AR
BANKERS
Barclays Bank plc
PO Box 777
Wolverhampton
WV1 1DS
NOMINATED ADVISER & BROKER
Liberum Capital Ltd
Ropemaker Place, Level 12
25 Ropemaker Street
London
EC2Y 9LY
JOINT BROKER
Jefferies Hoare Govett
Vintners Place
68 Upper Thames Street
London
EC4V 3BJ
Directors’ Report
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The Directors present their report on the affairs of the Group, together with the financial statements and
auditor’s report for the year ended 31 May 2012.
63
PRINCIPAL ACTIVITES
The Group’s principal activity is the exploration, evaluation and development of mineral exploration
targets, principally gold, focused exclusively in Liberia.
The subsidiary and associated undertakings principally affecting the losses or net assets of the Group in
the year are listed in note 15 to the financial statements.
BUSINESS REVIEW AND FUTURE DEVELOPMENTS
The purpose of this review is to show how the Group assesses and manages risk and uncertainty and
adopts appropriate policies and targets. Further details of the Group’s business and expected future
developments are also set out in the Chairman’s Statement on pages 6 to 9, the CEO’s statement on
pages 10 to 15 and in the Technical and Operations Review on pages 22 to 59.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group and Company is subject to various risks relating to political, social, industry, business and
financial conditions. The following risk factors, which are not exhaustive, are particularly relevant to the
Company and the Group’s business activities:
Exploration risk
There is no assurance that the Group’s exploration activities will be successful, and statistically few
properties that are explored are ultimately developed into producing mines.
Political risk
All of the Group’s operational activities are located in Liberia and the Group is therefore dependent on
the political and economic situation in Liberia and the wider African region. After 14 years of civil war,
hostilities ceased in 2003, and Liberia has since experienced a wave of new investment, improved
infrastructure, and has become one of the fastest growing economies in West Africa. However there can
be no assurance that political stability will continue.
Licencing and title risk
The Group’s exploration activities are dependent upon the grant of appropriate licences, concessions,
leases, permits and regulatory consents which may be withdrawn or made subject to limitations. Such
licences and permits are as a practical matter subject to the discretion of the applicable government or
government office. The Group must comply with known standards, existing laws and regulations that
may entail greater or lesser costs and delays depending on the nature of the activity to be permitted.
The interpretations, amendments to existing laws and regulations, or more stringent enforcement of
existing laws and regulations could have a material adverse impact on the Group’s results of operations
and financial condition. Whilst the Group continually seeks to do everything within its control to ensure
that the terms of each licence are met and adhered to, third parties may seek to exploit any technical
breaches in licence terms for their own benefit.
Additionally whilst the Group has diligently investigated title to all its licences and to the best of its
knowledge, title to all is in good standing, this should not be construed as a guarantee of title. If a title
defect does exist it is possible that the Group may lose all or part if its interest in the relevant properties.
Licence renewal and Mineral Development Agreement risk
There is a risk that that negotiations with the government in relation to the renewal or extension of a
licence, or the grant of a Mineral Development Agreement, may not result in the renewal, extension or
grant taking effect prior to the expiry of the previous licence period, and there can be no assurance of
the terms of any extension, renewal or grant.
Directors’ Report (continued)
Financing risk
The development of the Group’s properties will depend on the Group’s ability to obtain financing
through the raising of equity capital, joint venture of projects, debt financing, farm outs or other means.
There is no assurance that the Group will be successful in obtaining the required financing. If the Group is
unable to obtain additional financing as needed, some interests may be relinquished and/or the scope
of the operations reduced.
Details about the use of financial instruments by the Company and its subsidiaries as well as exposure to
financial risks are given in note 22 to the financial statements.
KEY PERFORMANCE INDICATORS
Given the stage of development of the Group’s operations, the key performance indicators used by
management for monitoring progress and strategic objectives for the business are as follows:
Resources – indicated (ounces Au)
Resources – inferred (ounces Au)
Resources – total (ounces Au)
Meters drilled (cumulative)
Samples collected (cumulative)
Exploration expenditure (cumulative)
Cash balance
Share price
31 May 2012 31 May 2011
1,373,000
552,000
2,444,000
260,000
3,817,000
812,000
53,316m
27,358m
76,192
41,032
$32.5m
$17.6m
$15.5m
$32.1m
£1.115
£1.515
CORPORATE GOVERNANCE
The Company is subject to the corporate governance regime of the United Kingdom. The Directors
acknowledge the importance of the guidelines set out in the Corporate Governance Code and the
QCA Guidelines and therefore intend to comply with these so far as is appropriate having regard to the
size and nature of the Company.
Board
The board currently comprises eight members, four of whom are executive. The board meets regularly
and is responsible for strategy, performance, approval of major capital projects and the framework of
internal controls. To enable the board to discharge its duties, all Directors receive appropriate and timely
information. Briefing papers are distributed to all Directors in advance of board meetings, and all
Directors have access to the advice and service of the Company Secretary. The Articles of Association
provide that Directors will be subject to re-election at the first opportunity after their appointment and
they will voluntarily submit to re-election at intervals of three years.
Audit Committee
The audit committee comprises Matthew Idiens and Roderick Smith (Chairman). The audit committee is
responsible for reviewing a wide range of financial matters including the annual and interim reports, the
Company’s internal control and risk management system. The audit committee’s responsibilities include
meeting with the Company’s auditor and agreeing the scope of their audit.
Remuneration Committee
The remuneration committee comprises Ian Cockerill (Chairman), Matthew Idiens and Stephen Betts. The
remuneration committee is responsible for reviewing the performance of the executive directors, setting
their remuneration levels, determining the design and setting the targets for any incentive schemes
operated by the Company for the Directors. It is also responsible for determining at which point the
Company should adopt any form of share option plan, and considering the grant of options under any
such plan. The board itself determines the remuneration of the non-executive directors.
Directors’ Report (continued)
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Safety, Health and Environmental Committee (“SHEC”)
The SHEC comprises of Ian Cockerill (Chairman), Daniel Betts and William Cook. SHEC is responsible for
formulating and reviewing the safety, health and environmental policies of the Group. It is also
responsible for ensuring that all Directors are kept informed of their health and safety obligations.
65
POST BALANCE SHEET EVENTS
Events after the reporting date have been disclosed in note 24 to the financial statements.
RESULTS AND DIVIDENDS
The results of the Group for the year ended 31 May 2012 are set out on page 71. The Directors do not
recommend payment of a dividend for the year (2011: nil).
DIRECTORS AND DIRECTORS’ INTERESTS
The Directors of the Company during the year and their beneficial interests in the ordinary shares of the
Company for the year were as follows:
ID Cockerill1
SA Betts2, 4
MC Idiens
RJH Smith
DE Betts3, 4
WBT Cook
DA Pelham
Number of
shares at
Number of
shares at
31 May 2012 31 May 2011
531,083
491,083
539,100
372,600
3,219,607
3,219,607
41,130
41,130
4,476,648
4,356,648
287,150
287,150
2,325
-
1 – ID Cockerill’s interests are held by family trusts in which he has a beneficial interest.
2 –SA Betts’s interests consist of 109,000 shares held by SA Betts, 92,500 shares held by Caroline Betts, 157,6004 shares held by Stephen
Betts & Sons Limited, and 180,0004 shares held by the Stephen Betts & Sons Limited (Self Administered) Pension Scheme.
3 – DE Betts’s interest consists of 4,139,048 shares held by DE Betts, 157,6004 shares held by Stephen Betts & Sons Limited, and 180,0004
shares held by the Stephen Betts & Sons Limited (Self Administered) Pension Scheme.
4 – The 157,600 shares held by Stephen Betts & Sons Limited and 180,000 shares held by Stephen Betts & Sons Limited (Self
Administered) Pension Scheme are included in both SA Betts and DE Betts.
On 18 July 2012 TR Hill was appointed as a Director of the Company.
Directors’ Report (continued)
The Directors’ interests in the share options of the Company at 31 May 2012 were as follows:
Options
at 1 June
2011
-
-
Options
granted
during
the year
20,000
20,000
Options
at 31 May
2012
20,000
20,000
Exercise
Price
Date of
grant
First
date of
exercise
Final
date of
exercise
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
337,500
-
337,500
£0.486 26/10/2010 24/12/2011 25/10/2020
-
-
16,500
16,500
16,500
16,500
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
450,000
-
450,000
£0.486 26/10/2010 24/12/2011 25/10/2020
-
-
16,500
16,500
16,500
16,500
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
ID Cockerill
ID Cockerill
SA Betts
SA Betts
SA Betts
MC Idiens
MC Idiens
MC Idiens
RJH Smith
270,000
-
270,000
£0.486 26/10/2010 24/12/2011 25/10/2020
RJH Smith
RJH Smith
DE Betts
DE Betts
DE Betts
WBT Cook
WBT Cook
WBT Cook
-
-
16,500
16,500
16,500
16,500
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
1,250,000
-
1,250,000
£0.486 26/10/2010 24/12/2011 25/10/2020
-
-
42,000
42,000
42,000
42,000
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
675,000
-
675,000
£0.486 26/10/2010 24/12/2011 25/10/2020
-
-
38,500
38,500
38,500
38,500
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
DA Pelham
225,000
-
225,000
£0.486 26/10/2010 24/12/2011 25/10/2020
DA Pelham
DA Pelham
-
-
32,500
32,500
32,500
32,500
£1.25 27/06/2011 27/06/2012 27/06/2021
£1.25 27/06/2011 27/06/2013 27/06/2021
Total
3,207,500
365,000
3,572,500
DIRECTORS’ REMUNERATION
for the
Directors
Directors
emoluments emoluments
for the
year ended year ended
31 May 2012 31 May 2011
$’000
$’000
ID Cockerill
SA Betts
MC Idiens
RJH Smith
DE Betts
WBT Cook
DA Pelham
Total Directors’ remuneration
64
51
54
52
218
202
169
810
52
47
49
40
129
118
165
600
The remuneration committee are in the process of determining the design and setting the targets of a
performance based incentive scheme for the executive Directors.
Additionally DA Pelham is entitled to a discovery bonus based on $0.10 cents per proved/probable
resource ounce.
Directors’ Report (continued)
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DIRECTORS’ INDEMNITIES
The Company has obtained third party indemnity provisions for the benefit of its Directors and Officers.
67
SUPPLIER PAYMENT POLICY
It is the Group’s policy to make payments, where possible, to suppliers in accordance with agreed terms
provided that the supplier has performed in accordance with the relevant terms and conditions. Trade
payables of the Group at 31 May 2012 were equivalent to 35 (2011: 27) days’ purchases, based on the
average daily amount invoiced by suppliers during the year.
CHARITABLE AND POLITICAL DONATIONS
The Company has made charitable donations to The Pygmy Hippo Foundation of $118,000 (2011: $nil)
during the year. The Company has not made any payments to political parties during the year (2011: $nil).
STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR
Each of the persons who is a Director at the date of approval of this Annual Report confirms that:
• so far as the Director is aware, there is no relevant audit information of which the Company’s auditor
is unaware; and
• the Director has taken all the steps that he ought to have taken as a Director in order to make himself
aware of any relevant audit information and to establish that the Company’s auditor is aware of
that information.
This confirmation is given and should be interpreted in accordance with the provisions of S418 of the
Companies Act 2006.
Baker Tilly UK Audit LLP have expressed their willingness to continue in office as auditors and a resolution
to reappoint them will be proposed at the forthcoming Annual General Meeting.
This Directors’ Report comprising pages 63 to 67 has been approved by the Board and signed on its
behalf by:
DE Betts
Director
20 September 2012
Registered Office:
49-63 Spencer Street, Hockley, Birmingham, B18 6DE
Company registered in England and Wales 05467327
Directors’ Responsibilities Statement
The Directors are responsible for preparing the Directors’ Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Company financial statements for each
financial year. The Directors are required by the AIM Rules of the London Stock Exchange to prepare
group financial statements in accordance with International Financial Reporting Standards (’IFRS’) as
adopted by the European Union (‘EU’) and have elected under company law to prepare the company
financial statements in accordance with IFRS as adopted by the EU.
The financial statements are required by law and IFRS adopted by the EU to present fairly the financial
position of the Group and the Company and the financial performance of the Group. The Companies
Act 2006 provides in relation to such financial statements that references in the relevant part of that Act
to financial statements giving a true and fair view are references to their achieving a fair presentation.
Under company law the Directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group and the Company and of the profit
or loss of the Group for that period.
In preparing the Group and Company financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether they have been prepared in accordance with IFRSs adopted by the EU;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the Group and the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and
explain the Group’s and the Company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and the Company and enable them to ensure that the financial
statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of
the Group and the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial
information included on the Hummingbird Resources plc website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statement
may differ from legislation in other jurisdictions.
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69
Independent Auditor’s Report to Members of
Hummingbird Resources plc
We have audited the consolidated and parent Company financial statements (“the financial
statements”) which comprise the Consolidated Income Statement, the Consolidated Statement of
Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated and
Company Statements of Cash Flows, the Consolidated and Company Statements of Changes in Equity
and the related notes. The financial reporting framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards (“IFRSs”) as adopted by the European
Union and, as regards the parent Company financial statements, as applied in accordance with the
provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part
16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
As more fully explained in the Directors’ Responsibilities, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is
to audit and express an opinion on the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the
Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the APB’s website at
www.frc.org.uk/apb/scope/private.cfm.
OPINION ON FINANCIAL STATEMENTS
In our opinion
• the financial statements give a true and fair view of the state of the Group’s and the parent
Company’s affairs as at 31 May 2012 and of the Group’s loss for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted
by the European Union;
• the parent Company financial statements have been properly prepared in accordance with IFRSs as
adopted by the European Union and as applied in accordance with the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial
statements are prepared is consistent with the financial statements.
Independent Auditor’s Report to Members of
Hummingbird Resources plc (continued)
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us
to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for
our audit have not been received from branches not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and
returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Andrew Allchin (Senior Statutory Auditor)
For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor
Chartered Accountants
2 Whitehall Quay
Leeds
LS1 4HG
20 September 2012
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Consolidated Income Statement
for the year ended 31 May 2012
Continuing operations
Revenue
Profit on deemed disposal
Share-based payments
Other administrative expenses
Administrative expenses
Finance income
Finance expense
Share of joint venture loss
Loss before tax
Tax
Notes
2012
$’000
2011
$’000
-
588
(1,139)
(3,147)
-
425
(1,141)
(2,588)
(3,698)
(3,304)
263
(674)
(46)
723
-
(29)
(4,155)
(2,610)
-
-
12
20
5
8
9
12
10
Loss for the year attributable to equity holders of the parent
(4,155)
(2,610)
Loss per ordinary share
Basic and diluted ($ cents)
11
(7.78)
(5.79)
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2012
Loss for the year
Other comprehensive income
2012
$’000
2011
$’000
(4,155)
(2,610)
Exchange translation differences on foreign operations
-
-
Total comprehensive loss for the year attributable to
equity holders of the parent
(4,155)
(2,610)
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Consolidated Balance Sheet
as at 31 May 2012
Assets
Non-current assets
Intangible exploration and evaluation assets
Property, plant and equipment
Investment in joint venture
Current assets
Trade and other receivables
Amounts due from joint venture
Cash and cash equivalents
Total assets
Liabilities
Current liabilities
Trade and other payables
Amounts due to joint venture
Total liabilities
Net assets
Equity
Share capital
Share premium
Retained earnings
Equity attributable to equity holders of the parent
Notes
2012
$’000
2011
$’000
13
14
12
16
12
16
18
12
19
32,522
17,582
1,363
936
1,647
394
34,821
19,623
851
35
15,503
16,389
51,210
2,602
1,139
3,741
417
-
32,112
32,529
52,152
1,573
354
1,927
47,469
50,225
855
41,922
4,692
47,469
854
41,881
7,490
50,225
The financial statements of Hummingbird Resources plc were approved by the Board of Directors and
authorised for issue on 20 September 2012. They were signed on its behalf by:
DE Betts
Director
Company number 05467327
The notes on pages 76 to 95 form part of these financial statements.
Consolidated Statement of Cash Flows
for the year ended 31 May 2012
Net cash outflow from operating activities
Investing activities
Notes
21
2012
$’000
2011
$’000
(2,201)
(1,651)
Purchases of intangible exploration and evaluation assets
(13,391)
(10,398)
Purchases of property, plant and equipment
Interest received
Net cash used in investing activities
Financing activities
Net proceeds from issue of shares
Net cash from financing activities
(593)
208
(1,532)
31
(13,776)
(11,899)
42
42
37,411
37,411
Net (decrease)/increase in cash and cash equivalents
(15,935)
23,861
Effect of foreign exchange rate changes
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(674)
32,112
15,503
682
7,569
32,112
Consolidated Statement of Changes in Equity
for the year ended 31 May 2012
Share
capital
$’000
Share
premium
$’000
As at 1 June 2010
Issue of shares
Expenses of issue of equity shares
Bonus issue (see note 19)
Capital reduction (see note 19)
Share based payments
Total comprehensive loss for the year
13
241
-
600
-
-
-
Retained
earnings
$’000
(2,422)
-
-
-
16,692
40,274
(3,104)
(600)
(11,381)
11,381
-
-
1,141
1,141
(2,610)
(2,610)
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Total
$’000
14,283
40,515
(3,104)
-
-
As at 1 June 2011
854
41,881
7,490
50,225
Issue of shares
Share based payments
Total comprehensive loss for the year
1
-
-
41
-
-
-
1,357
42
1,357
(4,155)
(4,155)
As at 31 May 2012
855
41,922
4,692
47,469
Notes to the Consolidated Financial Statements
for the year ended 31 May 2012
1 GENERAL INFORMATION
Hummingbird Resources plc (the ‘Company’), is incorporated in Great Britain under the Companies Act.
The address of the registered office is 49-63 Spencer Street, Hockley, Birmingham, West Midlands,
B18 6DE.
The nature of the Group’s operations and its principal activities is the exploration, evaluation and
development of mineral exploration targets, principally gold, focused exclusively in Liberia.
2 ADOPTION OF NEW AND REVISED STANDARDS
The financial statement have been drawn up on the basis of accounting policies consistent with those
applied in the financial statements for the year to 31 May 2011.
In the current year, the following new and revised Standards have been adopted. The adoption of these
standards, interpretations and amendments did not materially impact the Group.
International Financial Reporting Interpretations (IFRIC)
IFRIC 19
IFRIC 14
Extinguishing financial liability with equity instruments
Limit on a Defined Benefit Asset, Minimum Funding
Requirement and their interaction
The following Standards and Interpretations which have not been applied in the financial statements
were in issue but not yet effective (and in some cases had not yet been endorsed by the EU). The
Directors do not expect that the adoption of these Standards or Interpretations in future periods will have
a material impact on the financial statements of the Company or the Group.
IFRS 1 (amended)
IFRS 1 (amended)
IFRS 7 (amended)
IFRS 7 (amended)
IFRS 9
IFRS 10
IFRS 11
IFRS 12
IFRS 13
IAS 12 (amended)
IAS 1 (amended)
IAS 19 (amended)
IAS 27
IAS 28
IAS 32 (amended)
IFRIC 20
Severe Hyperinflation and Removal of Fixed Dates for
First-time Adopters
Government Loans
Disclosures – Transfers of Financial Assets
Offsetting Financial Assets and Financial Liabilities
Financial Instruments
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
Fair Value Measurement
Deferred Tax: Recovery of Underlying Assets
Presentation of Items of Other Comprehensive Income
Employee benefits
Separate Financial Statements
Investments in Associates and Joint Ventures
Presentation – Offsetting Financial Assets and
Financial Liabilities
Striping costs in the production phase of a surface mine
3 SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting
Standards (‘IFRSs’) as issued by the International Accounting Standards Board (‘IASB’) and as adopted
by the European Union (‘EU’) and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS.
The principal accounting policies adopted are set out below.
The functional currency of all companies in the Group is United States dollar (‘$’). The financial
statements are presented in thousands of United States dollars (‘$’000’). For reference the year end
exchange rate from sterling to $ was 1.5576 (2011: $1.6472).
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Going concern
The Directors have reviewed forecasts and budgets based on current expected levels of expenditure and
have concluded that the Group has sufficient funds available to meet its commitments for at least the
next 12 months.
The Directors regularly review the funding position of the Group and its cash flow forecasts. As a
significant proportion of costs are discretionary, the Directors are able to take action to reduce
expenditures should this be necessary.
The development of the Group’s properties through to production and revenue generation will depend
on the Group’s ability to obtain financing through the raising of equity capital, joint venture of projects,
debt financing, farm outs or other means. There is no assurance that the Group will be successful in
obtaining the required financing. If the Group is unable to obtain additional financing as needed, some
interests may be relinquished and/or the scope of the operations reduced.
The directors have a reasonable expectation that the group has adequate resources to continue in
operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of
accounting in preparing the annual financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made up to 31 May each year. Control is achieved where
the Company has the power to govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired of or disposed of during the year are included in the Consolidated
Income Statement from the effective date of acquisition or up to the effective date of disposal, as
appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring
accounting policies used into line with those used by the Group. All intra-group transactions, balances,
income and expenses are eliminated on consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the
Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the
original business combination and the non-controlling interest’s share of changes in equity since the date
of the combination. Losses applicable to the non-controlling interest in excess of the non-controlling
parties’ interests in the subsidiaries equity are allocated against the interest of the Group except to the
extent that the non-controlling interest has a binding obligation and is able to make an additional
investment to cover the losses.
Joint ventures
Where the Group holds an interest in a jointly controlled entity, it accounts for its interest using the equity
method. Under the equity method, the investment in the jointly controlled entity is recognised at cost
and the carrying amount is increased or decreased to recognise Group’s share of the profit or loss of the
joint venture after the date of recognition.
Where the Group contributes or sells assets to a joint venture in exchange for an equity interest in the
jointly controlled entity, the Group recognises in profit and loss for the period the proportion of the gain or
loss attributable to the equity interests of the other venturers.
Leasing
Rentals payable by the group under operating leases are charged to income on a straight-line basis
over the term of the relevant lease.
Foreign currencies
For the purpose of the consolidated financial statements, the results and financial position of each Group
company are expressed in US Dollars (‘$’), which is the functional currency of all of the entities in the
group, and the presentation currency for the consolidated financial statements.
Exchange differences are recognised in the profit or loss in the period in which they arise.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the income statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by
the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor
the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when
it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with
in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Property, plant and equipment
Property, plant and equipment (‘PP&E’) are carried at cost less accumulated depreciation and any
recognised impairment loss.
Depreciation and amortisation is charged so as to write off the cost or valuation of assets, other than
land, over their estimated useful lives, using the straight-line method, on the following bases:
Development assets – vehicles
Development assets – other
Other
33.3%
33.3%
33.3%
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in income.
Impairment of property, plant and equipment
At each balance sheet date, the Group reviews the carrying amounts of its property, plant and
equipment to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the recoverable amount of the cash-generating
unit to which the asset belongs.
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.
An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a
revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is
recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which
case the reversal of the impairment loss is treated as a revaluation increase.
Intangible exploration and evaluation assets
The Group applies the full cost method of accounting for Exploration and Evaluation (‘E&E’) costs, having
regard to the requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources. Under the full
cost method of accounting, costs of exploring for and evaluating mineral resources are accumulated by
reference to appropriate cost centres being the appropriate licence area, but are tested for impairment
on a cost pool basis as described below.
E&E assets comprise costs of (i) E&E activities that are ongoing at the balance sheet date, pending
determination of whether or not commercial reserves exist and (ii) costs of E&E that, whilst representing
part of the E&E activities associated with adding to the commercial reserves of an established cost pool,
did not result in the discovery of commercial reserves.
Costs incurred prior to having obtained the legal rights to explore an area are expensed directly to the
income statement as they are incurred.
Exploration and Evaluation costs
All costs of E&E are initially capitalised as E&E assets. Payments to acquire the legal right to explore, costs
of technical services and studies, seismic acquisition, exploratory drilling and testing are capitalised as
intangible E&E assets.
Such costs include directly attributable overheads, including the depreciation of property plant and
equipment utilised in E&E activities, together with the cost of other materials consumed during the
exploration and evaluation phases.
Treatment of E&E assets at conclusion of appraisal activities
Intangible E&E assets related to each exploration licence/prospect are carried forward, until the
existence (or otherwise) of commercial reserves has been determined. If commercial reserves have been
discovered, the related E&E assets are assessed for impairment on a cost pool basis as set out below and
any impairment loss is recognised in the income statement. The carrying value, after any impairment loss,
of the relevant E&E assets is then reclassified as development and production assets.
Impairment of E&E assets
E&E assets are assessed for impairment when facts and circumstances suggest that the carrying amount
may exceed its recoverable amount. Such indicators include, but are not limited to, those situations
outlined in paragraph 20 of IFRS 6 Exploration for and Evaluation of Mineral Resources and include the
point at which a determination is made as to whether or not commercial reserves exist.
Where there are indications of impairment, the E&E assets concerned are tested for impairment. Where
the E&E assets concerned fall within the scope of an established full cost pool, the E&E assets are tested
for impairment together with all development and production assets associated with that cost pool, as a
single cash generating unit.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
The aggregate carrying value is compared against the expected recoverable amount of the pool,
generally by reference to the present value of the future net cash flows expected to be derived from
production of commercial reserves. Where the E&E assets to be tested fall outside the scope of any
established cost pool, there will generally be no commercial reserves and the E&E assets concerned will
generally be written off in full.
Any impairment loss is recognised in the income statement as additional depreciation and amortisation,
and separately disclosed.
The Group considers the whole of Liberia to be one cost pool and therefore aggregates all Liberian
assets for the purposes of determining whether impairment of E&E assets has occurred.
Financial instruments
Recognition of financial assets and financial liabilities
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group
becomes a party to the contractual provisions of the instrument.
Derecognition of financial assets and financial liabilities
The Group derecognises a financial asset only when the contractual rights to cash flows from the asset
expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset
to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Group recognises its retained interest in the
asset and an associated liability for the amount it may have to pay. If the Group retains substantially all
the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the
financial asset and also recognises a collateralised borrowing for the proceeds received.
The Group derecognises financial liabilities when the Group’s obligations are discharged, cancelled
or expired.
Trade and other receivables
Trade and other receivables are measured at initial recognition at fair value, and are subsequently
measured at amortised cost less any provision for impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly
liquid investments that are readily convertible to a known amount of cash with three months or less
remaining to maturity and are subject to an insignificant risk of changes in value.
Trade and other payables
Trade and other payables are initially measured at fair value, and are subsequently measured at
amortised cost, using the effective interest rate method.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic resource will result and that outflow can be
reliably measured.
Rehabilitation
Provisions are made for the estimated rehabilitation costs relating to areas disturbed during exploration
activities up to reporting date but not yet rehabilitated. Changes in estimate are dealt with on a
prospective basis as they arise.
Share-based payments
The Group has applied IFRS 2 Share-based Payment for all grants of equity instruments.
The Group has used shares and share options as consideration for goods and services received from
suppliers and employees.
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
3 SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Equity-settled share-based payments to employees and others providing similar services are measured at
fair value at the date of grant. The fair value determined at the grant date of such an equity-settled
share-based instrument is expensed on a straight-line basis over the vesting period, based on the Group’s
estimate of the shares that will eventually vest. The corresponding amount is credited to
retained earnings.
Equity-settled share-based payment transactions with other parties are measured at the fair value of the
goods or services received, except where the fair value cannot be estimated reliably or excess fair value
of the identifiable goods or services received, in which case they are measured at the fair value of the
equity instruments granted, measured at the date the entity obtains the goods or the counterparty
renders the service. The fair value determined at the grant date of such an equity-settled share-based
instrument is expensed since the shares vest immediately. Where the services are related to the issue of
shares, the fair values of these services are offset against share premium.
Fair value is measured using the Black-Scholes model. The expected life used in the model has been
adjusted based on management’s best estimate, for the effects of non-transferability, exercise
restrictions and behavioural considerations.
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources
and assessing performance of the operating segments and making strategic decision, has been
identified as the Board of Directors.
The Board of Directors consider there to be only one operating segment, the exploration and
development of mineral resources, and only one geographical segment, being Liberia. Therefore, no
additional segmental information is presented.
4 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
In the application of the Group’s accounting policies, which are described in note 3, the Directors are
required to make judgements, estimates and assumptions about the carrying amounts of the assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both the current and
future periods.
The following are the critical judgements and estimations that the Directors have made in the process of
applying the Group’s accounting policies and that have the most significant effect on the amounts
recognised in the financial statements:
Recoverability of exploration and evaluation assets
Determining whether an exploration and evaluation asset is impaired requires an assessment of whether
there are any indicators of impairment, including by reference to specific impairment indicators
prescribed in IFRS 6 Exploration for and Evaluation of Mineral Resources. As exploration and evaluation
assets are assessed for impairment on a cost pool basis the existence and quantum of any impairment is
dependent on the choice of basis of cost pools. If there is any indication of potential impairment, an
impairment test is required based on value in use of the asset. This assessment involves judgement as to:
(i) the likely future commerciality of each cost pool of assets; (ii) when such commerciality should be
determined, and (iii) the potential future revenues and value in use. The value in use calculation requires
the entity to estimate the future cash flows expected to arise from the cash-generating unit and a
suitable discount rate in order to calculate present value.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
4 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY CONTINUED
Share-based payments
In order to calculate the charge for share-based compensation for the options granted on 26 October
2010 and on 27 June 2011 as required by IFRS 2, the Group makes estimates principally relating to the
assumptions used in its option-pricing model as set out in note 20.
The critical judgements made in these estimates were for the share options granted on 26 October 2010:
The share price on the date of grant which was estimated at £0.486 (adjusted for share consolidation)
being the price of the most recent share issue at the date of grant; and the expected volatility of share
price which was estimated based on other quoted exploration companies. The critical judgement for the
share options granted on 27 June 2011 was the expected volatility of the share price which was
estimated based on the Company’s own historic volatility and those of other quoted exploration
companies.
5 ADMINISTRATIVE EXPENSES BY NATURE
Depreciation of property, plant and equipment (note 14)
Staff costs excluding share based payments
Net foreign exchange (gains)/losses
Audit fees (note 6)
Non audit fees payable to associates of the Company’s auditor (note 6)
Communications and IT
Insurance
Marketing
Charitable donations
Office expenses
Professional and consultancy
Travel and accommodation
Bank charges
Share based payments
Profit on deemed disposal (note 12)
2012
$’000
112
1,563
(5)
44
7
62
51
284
118
187
452
237
35
2011
$’000
37
1,107
18
58
79
42
25
97
-
149
732
209
35
1,139
(588)
3,698
1,141
(425)
3,304
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
6 AUDITOR’S REMUNERATION
Amounts payable to Baker Tilly UK Audit LLP and its associates in respect of both audit and non-audit
services:
Audit fees
Fees payable to the Company’s auditor for the audit of the Company’s
annual accounts
Under accrual for prior year audit
Total audit fees
Non-audit fees payable to associates of the Company’s auditor
Taxation services
Corporate finance fees in relation to IPO*
Total non-audit fees
*$26,000 of these fees have been charged to share premium in the prior period.
7 STAFF COSTS
The average monthly number of employees and Directors was:
Directors
Other employees
Their aggregate remuneration comprised:
Wages and salaries
Social security costs
Pension
Share based payments
2012
$’000
2011
$’000
44
-
44
7
-
7
50
8
58
12
93
105
2012
Number
2011
Number
7
202
209
2012
$’000
7
106
113
2011
$’000
3,133
1,658
334
51
1,321
4,839
409
-
1,100
3,167
Within wages and salaries, $779,000 (2011: $565,000) relates to amounts paid to Directors. Included within
staff costs, is $2,137,000 (2011: $960,000) capitalised to intangible exploration and evaluation assets.
Included within social security costs is a provision of $116,000 (2011: $308,000) for the potential employer’s
social security contributions in respect of the share options issued to employees and Directors.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
8 FINANCE INCOME
Interest on bank deposits
Foreign exchange gain
The foreign exchange gain arose on non functional currency bank deposits.
9 FINANCE EXPENSE
Foreign exchange loss
2012
$’000
263
-
263
2012
$’000
674
674
2011
$’000
41
682
723
2011
$’000
-
-
The foreign exchange loss arose on non functional currency bank deposits.
10 TAX
The taxation charge for the year can be reconciled to the loss per the income statement as follows:
Loss before tax
Tax credit at the rate of tax 26% (2011:28%)
Tax effect of non-deductible expenses
Items not subject to tax
Deferred tax asset not recognised
Effect of overseas tax rates
Tax expense and effective tax rate for the year
2012
$’000
2011
$’000
(4,155)
(2,610)
(1,080)
(731)
3
(152)
1,229
-
-
2
(119)
849
(1)
-
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
11 LOSS PER ORDINARY SHARE
Basic loss per Ordinary share is calculated by dividing the net loss for the year attributable to Ordinary
equity holders of the parent by the weighted average number of Ordinary shares outstanding during the
year. The weighted average number of ordinary shares outstanding during the prior periods presented
has been adjusted in accordance with IAS 33. The adjustment reflects the 44 for 1 bonus issue that took
place on 23 November 2010 as described in note 19. The adjustment is made retrospectively as if the
bonus issue took place at the start of the relevant comparative period.
The calculation of the basic and diluted loss per share is based on the following data:
2012
$’000
2011
$’000
Losses
Loss for the purposes of basic loss per share being net loss attributable to
equity holders of the parent
(4,155)
(2,610)
Number of shares
2012
Number
2011
Number
Weighted average number of Ordinary shares for the purposes of basic
loss per share
53,367,031
45,073,464
Loss per Ordinary share
Basic and diluted
2012
$ cents
2011
$ cents
(7.78)
(5.79)
At the balance sheet date there were 4,369,255 (2011: 3,510,000) potentially dilutive ordinary shares.
Potentially dilutive ordinary shares include share options issued to employees and Directors and the
conditional acquisition of the 20% interest in the Joe Village licence, which it did not previously own as
described in note 19. In 2012 the potential ordinary shares are anti-dilutive and therefore diluted loss per
share has not been calculated.
12 JOINT VENTURE
On 24 January 2011, the Company together with its wholly owned subsidiary Iron Bird Resources Inc (“Iron
Bird”), entered into an agreement with Petmin Limited (“Petmin”) relating to the Group’s Mount Ginka
licence for exploration of iron ore in northern Liberia. Petmin Limited has been listed on the JSE since 1986
and the London Stock Exchange’s Alternative Investment Market (AIM) since 2006. Ian Cockerill is executive
chairman of Petmin Limited.
The key terms of this agreement were:
• The Mount Ginka licence would be transferred to Iron Bird
• Iron Bird would issue new shares equivalent to 15% of its issued share capital to Petmin for a
consideration of $500,000
• Subject to meeting certain criteria, Petmin were obliged to invest a further $1,500,000 in Iron Bird, to
increase its shareholding to 50%
Iron Bird was incorporated by the company for the purpose of this transaction and the substance of this
transaction was that the Group contributed the Mount Ginka license in exchange for a share in the
joint venture.
As a result of this transaction Iron Bird ceased to be a subsidiary and became a joint venture. Therefore
the disposal of a subsidiary and the recognition of a joint venture using the equity method has been
reflected in the financial statements.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
12 JOINT VENTURE CONTINUED
On 27 June 2011 Petmin invested $1,500,000 in Iron Bird and as a result was issued new shares in Iron Bird
equivalent of 35% of its issued share capital to increase its stake in Iron Bird to 50% of its issued share capital.
The profit on the deemed disposal of Iron Bird was determined as follows:
Group’s 100% interest pre transaction:
Non-current assets
Amounts due to Hummingbird Resources (Liberia) Inc
Net liabilities at the date of disposal
Group’s 85% interest post transaction:
Cost of investment
Share of joint venture assets and liabilities
Gain on deemed disposal
Investment in joint venture:
On the date of recognition of investment in joint venture
Share of joint venture results for the period
Investment in joint venture as at 31 May 2011
Share of joint venture results for the period to 27 June 2011
Investment in joint venture pre second phase investment on 27 June 2011 (85%)
Share of joint venture assets and liabilities post transaction (50%)
Gain on deemed disposal of 35%
Share of joint venture assets post transaction
Share of joint venture results for the period from 27 June 2012 to 31 May 2012
Investment in joint venture as at 31 May 2012
The Group’s interest in the joint venture as at the 31 May 2012 is set out below:
Share of:
Non-current assets
Current assets
Current liabilities
Net assets
24 January 2011
$’000
110
(112)
(2)
-
423
425
$’000
423
(29)
394
(6)
388
976
588
976
(40)
936
$’000
513
631
(208)
936
As at 31 May 2012 $1,139,000 (2011: $354,000) was due from the Company and Group to the joint
venture. As at 31 May 2012 $35,000 (2011: $nil) was due from the joint venture to the Company and
Group.
The joint venture had no revenue in the period.
Both Petmin and the Company have the option to contribute equally to future fundraisings.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
13 INTANGIBLE EXPLORATION AND EVALUATION ASSETS
Cost
At 1 June 2010
Additions
Disposal of subsidiary (see note 12)
At 1 June 2011
Additions
At 31 May 2012
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$’000
6,801
10,891
(110)
17,582
14,940
32,522
Additions to intangible exploration and evaluation assets during the year include $748,000
(2011: $493,000) of capitalised depreciation of property, plant and equipment used in exploration and
evaluation activities.
14 PROPERTY, PLANT AND EQUIPMENT
Development Development
assets –
other
$’000
assets –
vehicles
$’000
Other
$’000
Total
$’000
Cost
At 1 June 2010
Additions
At 1 June 2011
Additions
Disposals
At 31 May 2012
Accumulated depreciation
At 1 June 2010
Charge for the year
At 1 June 2011
Charge for the year
Disposals
At 31 May 2012
Carrying amount
At 31 May 2012
At 31 May 2011
488
998
1,486
92
(55)
427
263
690
455
-
1,523
1,145
190
297
487
451
(23)
915
608
999
123
178
301
289
-
590
555
389
94
271
365
61
-
426
51
55
106
120
-
226
200
259
1,009
1,532
2,541
608
(55)
3,094
364
530
894
860
(23)
1,731
1,363
1,647
Of the property, plant and equipment depreciation charged in the year $748,000 (2011: $493,000) was
capitalised into intangible exploration and evaluation assets, with the balance being charged to the
income statement.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
15 SUBSIDIARIES
The Company had investments in the following subsidiary undertakings as at 31 May 2012, which
principally affected the losses and net assets of the Group:
Name
Directly held
Country of
incorporation
and operation
Proportion
of voting
interest %
100
80
100
80
90
100
Hummingbird Resources (Liberia) Inc
Afro Minerals Inc
Liberia
Liberia
Golden Grebe Mining Limited
United Kingdom
Liberia
Liberia
Liberia
Indirectly held
Deveton Mining Company
Sinoe Exploration Limited
Hummingbird Security Limited
16 OTHER FINANCIAL ASSETS
Trade and other receivables
Other receivables
VAT recoverable
Prepayments and accrued income
Activity
Exploration
Exploration
Holding Company
Exploration
Exploration
Security
2012
$’000
260
96
495
851
2011
$’000
26
150
241
417
The Directors consider that the carrying amount of the remaining other receivables approximates their
fair value and none of which are past due.
Cash and cash equivalents
Cash and cash equivalents as at 31 May 2012 of $15,503,000 (2011: $32,112,000) comprise cash held by
the Group. The Directors consider that the carrying amount of these assets approximates their fair value.
17 DEFERRED TAX
Differences between IFRS and statutory tax rules give rise to temporary differences between the carrying
values of certain assets and liabilities for financial reporting purposes and for income tax purposes.
At 31 May 2012, the Group has unrecognised deferred tax assets of $1,676,000 (2011: $880,000) in respect
of UK and Liberian tax losses. No deferred tax asset has been recognised in respect of these amounts as
the recovery is dependent on the future profitability, the timing and the certainty of which cannot
reasonably be foreseen.
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
18 TRADE AND OTHER PAYABLES
Trade payables
Other taxes and social security
Accruals
Other payables
2012
$’000
1,393
201
992
16
2011
$’000
941
79
548
5
2,602
1,573
The average credit period taken for trade purchases is 35 days (2011: 27 days). Where possible the Group
seeks to settle agreed payables within the contractual timeframe.
The Directors consider that the carrying amount of trade and other payables approximates to their
fair value.
Operating lease commitments
At the balance sheet date, the Group had outstanding commitments for future minimum lease
payments under non-cancellable operating leases, which fall due as follows:
Within one year
In the second to fifth years inclusive
After five years
2012
$’000
118
121
48
287
2011
$’000
121
177
64
362
Operating lease payments represent rentals payable by the Group for properties located in Liberia and
the head office in the UK.
19 SHARE CAPITAL
Authorised share capital
As permitted by the Companies Act 2006, the Company does not have an authorised share capital.
Issued equity share capital
Issued and fully paid
Number
2012
$’000
Number
2011
$’000
Ordinary shares of £0.01 each
53,410,565
855
53,355,565
854
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
19 SHARE CAPITAL CONTINUED
The Company has one class of Ordinary shares which carry no right to fixed income.
At 1 June 2011
Allotment of shares pre IPO
Bonus issue (a)
Allotment of shares at IPO (b)
At 1 June 2011
Share options exercised (c)
At 31 May 2012
Ordinary Shares
of £0.01
Number
828,362
18,295
37,252,908
15,256,000
53,355,565
55,000
53,410,565
(a) Bonus issue and capital reduction
On 23 November 2010 the Company, by means of a bonus issue out of share premium, issued
37,252,908 ordinary shares of £0.01 each credited as fully paid to and among all shareholders in the
proportion of 44 new shares for every existing share held. This resulted in share capital increasing by
$600,000, representing the nominal value of these shares.
On 23 November 2010, the capital of the Company was reduced through the reduction by
$11,381,000 of share premium from $16,381,000 to a balance of $5,000,000.
Both the bonus issue and capital reduction were necessary to enable the Company to re-register as
a public limited company.
(b) Allotment of shares at IPO
On 10 December 2010 the company was admitted to trading on AIM and issued 15,256,000 ordinary
shares of £0.01 each at a price of £1.67 per share, raising gross proceeds of £25,478,000 ($40,223,000).
(c) Share options exercised
55,000 share options were exercised during the year raising gross proceeds £27,000 ($42,000).
On 29 February 2012 the Group entered into a conditional agreement to acquire the 20% interest in its
Joe Village licence, which it did not previously own, for 103,255 ordinary shares in the Company. At the
year end the acquisition had not yet completed and the shares had not been issued.
20 SHARE BASED PAYMENTS
Share based payment charge for share options granted 27 June 2011
Share based payment charge for share options granted 26 October 2010
Issue of 10,000 (pre bonus issue) shares to Ian Cockerill
2012
$’000
654
703
-
2011
$’000
-
791
350
Total share based payment charge
1,357
1,141
Included within share based payments, is $218,000 (2011: nil) capitalised to intangible exploration and
evaluation assets.
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
20 SHARE BASED PAYMENTS CONTINUED
Equity settled share-based payments granted in the year to 31 May 2012
On 27 June 2011 the Company granted 1,023,000 share options to certain Directors, employees and
consultants.
Total number of share options granted
Exercise price of the options
Exercise period:
Tranche 1 - 27 June 2012 and 27 June 2021
Tranche 2 - 27 June 2013 and 27 June 2021
Number of share options lapsed during the current period
Number of share options outstanding as at 31 May 2012
1,023,000
£1.25
511,500
511,500
212,000
811,000
The fair value of equity settled share options granted was estimated as at the date of grant using the
Black-Scholes model, taking into account the terms and conditions upon which the options were
granted. The expected volatility was determined based on the volatility of similar quoted companies as
well as the Company’s own historic volatility from listing on AIM.
The table below lists the principal assumptions and inputs to the model used for options granted on the
27 June 2011:
Share price at the date of grant
Expected dividend yield
Expected volatility
Expected life
Risk free interest rate
$1.978 (£1.24)
nil
70%
5 years
1.87%
Equity settled share-based payments granted in the year to 31 May 2011
On 26 October 2010 the Company granted 78,000 share options with an exercise price of £21.875. On
23 November 2010 as a result of the Bonus Issue the Company adjusted the options granted, to increase
the number of ordinary shares over which options were held by an additional 44 options for every 1
option held and to decrease the exercise price by a factor of 45 such that the option holders were in the
same economic position as before the bonus issue. As a result there were 3,510,000 options outstanding
as of 31 May 2011 with an exercise price of £0.48611 each. These share options are exercisable in the
period between 24 December 2011 and 26 October 2020. These share options issued to employees and
Directors normally lapse on cessation of employment or holding office.
Total number of share options granted (post bonus issue)
Exercise price of the options
Exercise period - 24 December 2011 and 26 October 2020
Number of share options exercised in the period
Number of share options lapsed during the current period
Number of share options outstanding as at 31 May 2012
3,510,000
£0.48611
3,510,000
55,000
-
3,455,000
The fair value of equity settled share options granted was estimated as at the date of grant using the
Black-Scholes model, taking into account the terms and conditions upon which the options were
granted. The expected volatility was determined based on the volatility of similar quoted companied as
the Company was not quoted at the time.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
20 SHARE BASED PAYMENTS CONTINUED
The table below lists the principal assumptions and inputs to the model used for options granted on the
26 October 2010:
Share price at the date of grant
Expected dividend yield
Expected volatility
Expected life
Risk free interest rate
21 NOTES TO THE STATEMENT OF CASH FLOWS
Loss before tax
Adjustments for:
Depreciation of property, plant and equipment
Share based payments
Profit on deemed disposal
Finance income
Finance expense
Share of joint venture loss
$0.778 (£0.486)
nil
65%
5 years
3%
2012
$’000
2011
$’000
(4,155)
(2,610)
112
1,139
(588)
(263)
674
46
37
1,141
(425)
(723)
-
29
Operating cash flows before movements in working capital
(3,035)
(2,551)
Increase in receivables
Increase in payables
(Increase)/decrease in amounts due from joint venture
Increase in amounts due to joint venture
(196)
(165)
280
(35)
785
599
112
354
Net cash outflows from operating activities
(2,201)
(1,651)
Cash and cash equivalents (which are presented as a single class of assets on the balance sheet)
comprise cash in hand, cash at bank and short term bank deposits with an original maturity of three
months or less. The carrying value of these assets is approximately equal to their fair value.
22 FINANCIAL INSTRUMENTS
In common with all other businesses, the Group and Company are exposed to risks that arise from its use
of financial instruments. This note describes the Group’s and Company’s objectives, policies and
processes for managing those risks and the methods used to measure them. Further quantitative
information in respect of these risks is presented throughout these financial statements.
Capital
The Company and Group define capital as share capital, share premium and retained earnings. In
managing its capital, the Group’s primary objective is to provide a return to its equity shareholders
through capital growth. Going forward the Group will seek to maintain a gearing ratio that balances risks
and returns at an acceptable level and also to maintain a sufficient funding base to enable the Group
to meet its working capital and strategic investment needs. In making decisions to adjust its capital
structure to achieve these aims, either through new share issues or the issue of debt, the Group considers
not only is short-term position but also its long term operational and strategic objectives.
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
22 FINANCIAL INSTRUMENTS CONTINUED
Externally imposed capital requirement
The Group is not subject to externally imposed capital requirements.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition,
the basis of measurement, the basis on which income and expenses are recognised, in respect of each
class of financial asset, financial liability and equity instrument are disclosed in note 3 to the Consolidated
Financial Statements.
Principal financial instruments
The principal financial instruments used by the Group from which financial risk arises are as follows:
Financial assets
Cash and cash equivalents
Other receivables
Financial liabilities
Trade payables
Other payables
Amounts due to joint venture
2012
$’000
2011
$’000
15,503
32,112
356
176
15,859
32,288
1,393
16
1,139
2,548
941
5
354
1,300
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group’s risk management objectives and
policies. Whilst retaining ultimate responsibility for these, the board has delegated the authority for
designing and operating processes that ensure the effective implementation of the objectives and
policies to the Group’s finance function. The Board receives regular reports from the Chief Financial
Officer through which it reviews the effectiveness of the processes put in place and the appropriateness
of the objectives and policies set.
The overall objective of the board is to set policies that seek to reduce risk as far as practical without
unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are
set out below:
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group.
Credit risk arises principally from the Group’s investment in cash deposits. The Group seeks to deposit
funds with reputable financial institutions until such time as it is required.
The Group does not have any significant credit risk exposure on trade and other receivables.
The carrying amount of financial assets recorded in the financial statements represents the Group’s
maximum exposure to credit risk.
Liquidity risk
Liquidity risk arises from the Group and Company’s management of working capital and the amount of
funding committed to its exploration programme. It is the risk that the Group or Company will encounter
difficulty in meeting its financial obligations as they fall due.
Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
22 FINANCIAL INSTRUMENTS CONTINUED
The Group and Company’s policy is to ensure that sufficient funds will be available to allow it to meet its
liabilities as they fall due. To achieve this, the Board receives cash flow projections as well as information
regarding available cash balances on a regular basis. The Board will not commit to material expenditures
prior to being satisfied that sufficient funding is available.
The Group’s financial liabilities are not significant and therefore no maturity analysis has been presented.
All financial liabilities held by the Group are non-interest bearing.
Foreign exchange risk and foreign currency risk management
The Group is exposed to foreign exchange risk through certain of its costs being denominated in
currencies other than the functional currency (in particular Sterling), and from holding Sterling cash
balances.
Although the Group has no formal policy in respect of foreign exchange risk, as the majority of the
Group’s forecast expenditures are in US Dollars and Sterling, the Group holds the majority of its funds in
these two currencies. Currency exposures are monitored on a monthly basis.
The carrying amounts of the Group’s and Company’s foreign currency denominated financial assets and
monetary liabilities at the reporting date are as follows:
Euros (‘€’)
Sterling (‘GBP’)
Canadian Dollars (‘CAD’)
South African Rand (‘ZAR’)
Liabilities
2011
$’000
40
169
13
-
2012
$’000
67
392
-
-
2012
$’000
41
8,177
8
30
Assets
2011
$’000
23
15,550
1
-
Foreign currency sensitivity analysis
The Group is exposed primarily to movements in GBP against the $. Sensitivity analyses have been
performed to indicate how the profit or loss would have been affected by changes in the exchange
rate between the $ and GBP. The analysis is based on a weakening and strengthening of the $ by
10 per cent against the GBP in which the Group has assets and liabilities at the end of each respective
period. A movement of 10 per cent reflects a reasonably possible sensitivity when compared to historical
movements over a three to five year timeframe. The sensitivity analysis includes only outstanding foreign
currency denominated monetary items and adjusts their translation at the period end for a ten per cent
change in foreign currency rates.
A positive number below indicates an increase in profit where the $ strengthens ten per cent against the
GBP. For a ten per cent weakening of the $ against the GBP, there would be an equal and opposite
impact on the profit, and the balance below would be negative.
The following table details the Group’s sensitivity to a ten per cent strengthening in the $ against the GBP.
Decrease in income statement and net assets
2012
$’000
2011
$’000
(789)
(1,538)
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Notes to the Consolidated Financial Statements (continued)
for the year ended 31 May 2012
23 RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated
on consolidation and are not disclosed in this note.
Transactions with Stephen Betts & Sons Limited
During the year the Company charged Stephen Betts & Sons Limited $32,000 (2011: $nil) under a
contract for the provision of office equipment and premises. Additionally during the year Stephen Betts &
Sons Limited charged the Company $85,000 (2011: $54,000) under a contract for the provision of staff,
office equipment and premises. There were no amounts outstanding between the parties as at 31 May
2012 (2011: $29,000 owed by the Company to Stephen Betts & Sons Limited).
Stephen Betts & Sons Limited is a related party of the Group because Stephen Betts and Daniel Betts are
shareholders and Directors of that company.
Transactions with The Pygmy Hippo Foundation
During the year the Company made charitable contributions to The Pygmy Hippo Foundation of
$118,000 (2011: nil). The Pygmy Hippo Foundation is a related party as Daniel Betts and William Cook are
Directors of the Company and The Pygmy Hippo Foundation.
Joint Venture with Petmin Limited (Iron Bird Resources Inc)
During the year, the Group entered into a transaction with Petmin Limited as described in note 12. Petmin
Limited is a related part of the Group because Petmin Limited is a joint venture partner and Ian Cockerill
is the executive chairman of that company.
Remuneration of key management personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out
below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
Short-term employee benefits
Social security cost
Pension
Share based payment charge
Provision for potential social security costs on share options
2012
$’000
781
96
29
912
92
2011
$’000
600
66
-
695
306
1,910
1,667
24 EVENTS AFTER THE REPORTING DATE
Share options
On 11 July 2012 the Company granted 989,000 share options to certain Directors and employees. These
share options are exercisable at £1.12 per share and vest in two tranches over a 24 month period
assuming certain performance criteria are met. Following this grant, 20,000 of these share options lapsed.
Since the year end 47,500 share options that were granted on 27 June 2011 lapsed.
On 27 June 2012 90,000 share options that were granted on 26 October 2010 were exercised.
Investment by IFC
On the 17 August 2012 the Company announced the IFC (part of the World Bank) was considering
subscribing for approximately 3.2 million shares in the Company at a share price of £0.93. The IFC will
also receive half a warrant per share subscribed for at a strike price of £1.4415 with a 5 year term. This
investment is subject only to the execution of final documentation and the approval by the IFC board
of directors.
Company Balance Sheet
as at 31 May 2012
Assets
Non-current assets
Investments
Property, plant and equipment
Receivables from subsidiaries
Current assets
Trade and other receivables
Cash and cash equivalents
Total assets
Liabilities
Current liabilities
Trade and other payables
Amounts due to joint venture
Total liabilities
Net assets
Equity
Share capital
Share premium
Retained earnings
Total equity
Notes
2012
$’000
2011
$’000
29
30
31
31
31
32
33
4,698
215
31,403
36,316
300
13,198
13,498
49,814
1,120
1,139
2,259
2,172
235
17,794
20,201
257
31,471
31,728
51,929
717
354
1,071
47,555
50,858
855
41,922
4,778
47,555
854
41,881
8,123
50,858
The financial statements were approved by the board of Directors and authorised for issue on
20 September 2012.
They were signed on its behalf by:
DE Betts
Director
The notes on pages 99 to 103 form part of these financial statements.
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Company Statement of Cash Flows
for the year ended 31 May 2012
Net cash outflow from operating activities
Investing activities
Purchases of property, plant and equipment
Investment in subsidiaries
Increase in amounts due from subsidiary companies
Interest received
Notes
35
2012
$’000
2011
$’000
(2,024)
(2,636)
(77)
(2,389)
(13,324)
173
(271)
(2,172)
(9,057)
31
Net cash used in investing activities
(15,617)
(11,469)
Financing activities
Proceeds from issue of shares
Net cash from financing activities
Net (decrease)/increase in cash and cash equivalents
Effect of foreign exchange rate changes
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
42
42
(17,599)
(674)
31,471
13,198
37,411
37,411
23,306
682
7,483
31,471
Company Statement of Changes in Equity
for the year ended 31 May 2012
Share
capital
$’000
Share
premium
$’000
As at 1 June 2010
Issue of equity shares
Expenses of issue of equity shares
Bonus issue
Capital reduction
Share based payments
Total comprehensive loss for the year
As at 1 June 2011
Issue of shares
Share based payments
Total comprehensive loss for the year
13
241
-
600
-
-
Retained
earnings
$’000
(1,422)
-
-
-
16,692
40,274
(3,104)
(600)
Total
$’000
15,283
40,515
(3,104)
-
-
(11,381)
11,381
-
-
1,141
1,141
(2,977)
(2,977)
854
41,881
8,123
50,858
1
-
-
41
-
-
-
1,357
42
1,357
(4,702)
(4,702)
As at 31 May 2012
855
41,922
4,778
47,555
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99
Notes to the Company Financial Statements
for the year Ended 31 May 2012
25 SIGNIFICANT ACCOUNTING POLICIES
The separate financial statements of the Company are presented as required by the Companies Act
2006 (the ‘Act’). As permitted by the Act, the separate financial statements have been prepared in
accordance with International Financial Reporting Standards.
The financial statements have been prepared on the historical cost basis. The principal accounting
policies adopted are the same as those set out in note 3 to the Consolidated Financial Statements
except as noted below.
As permitted by section 408 of the Act, the Company has elected not to present its profit and loss
account for the year. Hummingbird Resources plc reported a loss for the financial year ended 31 May
2012 of $4,702,000 (2011: $2,977,000).
Investments
Fixed asset investments, including investments in subsidiaries, are stated at cost and reviewed for
impairment if there are any indications that the carrying value may not be recoverable.
26 CRITICAL ACCOUNTING JUDGEEMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
The Company’s financial statements, and in particular its investments in and receivables from
subsidiaries, are affected by the critical accounting judgements and key sources of estimation
uncertainty in respect of the recoverability of exploration and evaluation assets which are described in
note 4 to the Consolidated Financial Statements.
27 AUDITOR’S REMUNERATION
The auditor’s remuneration for audit and other services is disclosed in note 6 to the Consolidated
Financial Statements.
28 STAFF COSTS
The average monthly number of employees (including Directors) was:
Directors
Other employees
Their aggregate remuneration comprised:
Wages and salaries
Social security costs
Pension
Share based payments
2012
Number
2011
Number
7
5
12
7
6
13
$’000
$’000
1,312
1,087
281
51
1,321
2,965
400
-
1,100
2,587
Within wages and salaries, $779,000 (2011: $565,000) relates to amounts paid to Directors for services
rendered. Included within staff costs is $299,000 (2011: $380,000) recharged to subsidiaries as intangible
exploration and evaluation assets.
Notes to the Company Financial Statements (continued)
for the year ended 31 May 2012
28 STAFF COSTS CONTINUED
Included within social security costs is a provision of $116,000 (2011: $308,000) for the potential employers
social security contributions in respect of the share options issued to employees and Directors.
Key management remuneration is disclosed in note 23 to the Consolidated Financial Statements.
29 INVESTMENTS
Cost
At 1 June
Additions
At 31 May
Investment in Investment in
subsidiaries
2011
$’000
subsidiaries
2012
$’000
2,172
2,526
4,698
-
2,172
2,172
The Company’s subsidiaries are disclosed in note 15 to the Consolidated Financial Statements. The
additions in the year relate to certain costs incurred by the Company on behalf of its subsidiaries that are
not invoiced to subsidiaries, including share based payments. These costs are not repayable by the
Company’s subsidiaries.
30 PROPERTY, PLANT & EQUIPMENT
Development
assets –
other
$’000
Other
$’000
Total
$’000
Cost
At 1 June 2010
Additions
At 1 June 2011
Additions
At 31 May 2012
Accumulated depreciation
At 1 June 2010
Charge for the year
At 1 June 2011
Charge for the year
At 31 May 2012
Carrying amount
At 31 May 2012
At 31 May 2011
-
38
38
31
69
-
6
6
21
27
42
32
-
233
233
61
294
-
30
30
91
121
173
203
-
271
271
92
363
-
36
36
112
148
215
235
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Notes to the Company Financial Statements (continued)
for the year ended 31 May 2012
31 FINANCIAL ASSETS
Receivables from subsidiaries
At the balance sheet date amounts receivable from the fellow group companies were $31,403,000 (2011:
$17,794,000). These amounts are repayable on demand however these are not expected to be repaid
within one year and no interest in currently charged. The carrying amount of these assets approximates
their fair value.
Trade and other receivables
Other receivables
VAT recoverable
Prepayments and accrued income
2012
$’000
37
96
167
300
2011
$’000
26
150
81
257
There are no past due or impaired receivables.
Cash and cash equivalents
These comprise cash held by the Company and short-term bank deposits with an original maturity of
three months or less. The carrying value of these assets approximates their fair value.
The Company’s principal financial assets are bank balances and cash and receivables from related
parties none of which are past due. The Directors consider that the carrying amount of receivables from
related parties approximates their fair value.
32 FINANCIAL LIABILITIES
Trade and other payables
Trade payables
Other taxes and social security
Accruals
Other payables
2012
$’000
395
54
665
6
1,120
2011
$’000
247
52
414
4
717
The average credit period taken for trade purchases is 22 days (2011: 23 days).
The Directors consider that the carrying amount of trade and other payables approximates to their
fair value.
Notes to the Company Financial Statements (continued)
for the year ended 31 May 2012
32 FINANCIAL LIABILITIES CONTINUED
Operating lease commitments
At the balance sheet date, the Company had outstanding commitments for future minimum lease
payments under non-cancellable operating leases, which fall due as follows:
Within one year
In the second to fifth years inclusive
After five years
2012
$’000
87
-
-
87
2011
$’000
93
93
-
186
Operating lease payments represent rentals payable by the Company for the UK head office.
33 SHARE CAPITAL
The movements on this item are disclosed in note 19 to the Consolidated Financial Statements.
34 SHARE BASED PAYMENTS
The Company’s share-based payments information is disclosed in note 20 to the Consolidated
Financial Statements.
35 NOTES TO THE STATEMENT OF CASH FLOWS
Loss before tax
Adjustments for:
Depreciation of property, plant and equipment
Share based payments
Finance income
Finance expense
2012
$’000
2011
$’000
(4,702)
(2,977)
112
1,139
(195)
674
37
1,141
(723)
-
Operating cash flows before movements in working capital
(2,972)
(2,522)
Increase in receivables
Increase / (decrease) in payables
Increase in amounts due to joint venture
(11)
174
785
(215)
(253)
354
Net cash outflow from operating activities
(2,024)
(2,636)
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Notes to the Company Financial Statements (continued)
for the year ended 31 May 2012
36 FINANCIAL INSTRUMENTS
The Company’s strategy and financial risk management objectives are described in note 22.
Principal financial instruments:
The principal financial instruments used by the Company from which risk arises are as follows:
Financial assets
Cash and cash equivalents
Other receivables
Financial liabilities
Trade payables
Other payables
Amounts due to joint venture
2012
$’000
2011
$’000
13,198
31,536
44,734
395
6
1,139
1,540
31,471
17,970
49,441
247
4
354
605
The risks that the Company is subject to in addition to the Group risks described in note 22 are set
out below:
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Company.
In addition to the risks described in note 22 which affect the Group, the Company is also subject to credit
risk on the balances receivable from its subsidiaries (see note 31).
Foreign currency exposure and sensitivity analysis
The Company’s exposure to foreign currency exposure and sensitivity to exchange rates is the same as
the Group’s (see note 22).
37 RELATED PARTIES
Amounts due from subsidiaries
The Company has entered into a number of unsecured related party transactions with its subsidiary
undertakings. The most significant transactions carried out between the Company and its subsidiary
undertakings are mainly for short and long-term financing. Amounts owed from these entities are
detailed below:
Hummingbird Resources (Liberia) Inc.
2012
$
2011
$
31,403
17,794
These amounts are repayable on demand and no interest is currently charged.
The Company’s transactions with other related parties and remuneration of key management personnel
are disclosed in note 23 to the Consolidated Financial Statements.
38 EVENTS AFTER THE BALANCE SHEET DATE
Events after the balance sheet date are disclosed in note 24 to the Consolidated Financial Statements.
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Hummingbird Resources plc
22 Mount Row
London, W1K 3SF
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T: +44 (0)20 3416 3560
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F: +44 (0)20 3416 3573 D