Tietto Minerals Ltd (ASX:TIE) has returned high-grading gold intervals and standout intercepts such as 21 metres at 13.02 g/t from a high-grade zone at Abujar Gold Project in Côte d’Ivoire, West Africa.
The encouraging intervals were returned from drilling at Abujar‐Gludehi (AG) deposit at Tietto’s 1.7-million-ounce Abujar project.
Apart from the notable 21-metre intersections from 215 metres, other key intervals were:
- 10 metres grading 7.21 g/t Au from 115 metres;
- 7 metres grading 12.41 g/t Au from 174 metres;
- 27 metres grading 2.30 g/t Au from surface; and
- 23 metres grading 3.22 g/t Au from 14 metres.
Tietto managing director Dr Caigen Wang said: “Our drilling at AG continues to deliver cracking drill intercepts that are shallow, wide and high-grade, ticking all the boxes that point to potential for a highly profitable open-pit mining operation.
“On Section 23B we are reporting four holes from surface to depth with intercepts of very high grade and good width.
“The multiple occurrences of high‐grade gold mineralisation confirm strike and depth extension of gold mineralisation at AG deposit.
“Our next 50 kilometres of diamond drilling has started, using our own rigs to grow our existing deposits and test the pipeline of new prospects we have identified at the Abujar Gold Project where over 90% of the mineralised shear structures remains to be tested.”
Resource estimate update
Tietto is hoping to update a mineral resource estimate this quarter and has been focused on the high-grading AG deposit, which was put at 15.7 million tonnes grading 2.1 g/t for 1.06 million ounces in the project's April 2019 resource estimate.
The company has undertaken considerable drilling since the estimate and was given a 45-cents-a-share valuation by Euroz Securities this week.
'Spec buy' recommendations
Euroz also gave Tietto a 'speculative buy' recommendation in the maiden coverage.
Last month research outfit Hartleys Limited also recommended the company’s securities as a speculative buy.
Hartleys gave the shares a 36.8-cent valuation and set a 12-month target of 48.1 cents as shares swapped hands for what was then 21.5 cents a share.
The company’s share price has moved up in the six weeks since, with shares being traded for 32.5 cents at lunchtime today.
Hartleys previously helped Tietto raise $7 million for the company’s efforts and put its enterprise value at $90 million last month.
The company’s market capitalisation is now about $88.6 million.
Analyst and investor valuations of Tietto's enterprise value are expected to be recalculated with positive results from the field and the expected mineral resource update this quarter.
The company hopes to drill 50,000 metres in its latest campaign and will extend its efforts into 2020 as drillers take advantage of three company-owned drill rigs on-site.
Tietto Minerals will hold its annual general meeting in Perth at 88 William Street on November 13, 2019, at 10am Western Standard Time (1pm EST).