Tietto Minerals Ltd (ASX:TIE) has procured a SAG mill for its Abujar Gold Project in Cote d’lvoire, further advancing the company's progress towards operating West Africa’s next gold mine.
Originally manufactured in 2008, the single-stage SAG mill was never put into operation and has been in storage in Australia for the last 12 years.
Grinding company NCP International Ltd will transport the mill components to Johannesburg for a full inspection and repair with works expected to be completed in the next 28 weeks.
Key step on delivery path
Managing director Dr Caigen Wang said the company was pleased to announce procurement of the longest lead item for the development of Abujar.
He said: “This opportunistic procurement will save more than US$3.5 million of capital expenditure, increases the future mine’s milling capacity and reduces unit milling costs as well as reducing the standard mill procurement time by more than 20 weeks.
“The mill is the beating heart of the processing facility and we are delighted to have secured a mill that will boost the economics of the Abujar project at a reduced price.”
Wang added that the move was a key step on the delivery path for the project’s first production in quarter four of 2022.
On-track to deliver DFS
NCPI will overhaul the mill and supply it with a new VVVF drive, including supply of a warranty equivalent to a new mill.
The mill size is slightly larger than envisaged in the Abujar pre-feasibility study, providing upside potential in terms of throughput.
Preliminary assessments predict annual mill capacity of more than 4 million tonnes, which should further improve the project economics.
Tietto is on track to deliver a definitive feasibility study (DFS) in quarter three and is well funded to drive Abujar development with around $52 million cash in the bank.