Results of 2017 AGM
Diversified mining services company Ausdrill Limited (ASX: ASL) is pleased to announce that its wholly owned subsidiary, African Mining Services (AMS), has been awarded a contract to provide mining services at the Yanfolila gold mine for Hummingbird Resources. Hummingbird Resources is an AIM-listed West African gold explorer and developer, with its key project being the Yanfolila gold mine, located in Mali, West Africa, where mine construction is currently underway ahead of its first gold pour in 2017. The contract is for a term of three-years, with an option to extend by a further year. The contract is expected to generate approximately US$112 million (AUD$147 million) in revenue over three years, with mining anticipated to commence in the second half of 2017. AMS anticipates it will employ approximately 450 personnel to complete the works, the majority of whom will be local. The project will require capital expenditure of approximately US$38 million (AUD$50 million) for the acquisition of new equipment. Ausdrill’s Managing Director, Ron Sayers, said: “We look forward to working with Hummingbird Resources to achieve its goal of developing the Yanfolila gold project, and then running it as an efficient, low cost, high grade open pit mining operation. Ausdrill’s 25 years’ of experience working in the West African gold sector means we have the track record and know-how to ensure the delivery of a safe and profitable mining operation.” Hummingbird Resources CEO, Dan Betts, said: “Appointing AMS as our mining contractor is another major milestone for Hummingbird and it represents the single largest contract the company will sign. AMS has an excellent reputation for high quality work and an exemplary health and safety record; they have a wealth of experience with over 25 years’ experience operating in West Africa and I am delighted to embark on this partnership with them. Mine construction is progressing well and we are on track to start production from Yanfolila on budget at the end of next year.