Tietto Minerals Ltd (ASX:TIE) has been maintained at a Speculative Buy rating by Euroz Hartleys ahead of the release of a definitive feasibility study (DFS) for its Abujar Gold Project in Côte d’Ivoire by the end of the third quarter of 2021.
It also has a price target of 75 cents per share from Euroz Hartleys.
Tietto also remains on track for a final investment decision (FID) by the fourth quarter of 2021 and is targeting first gold in the fourth quarter of 2022.
The broker noted that TIE retains strong cash of $45 million and is well funded to complete its DFS activities, some early works and ongoing exploration.
Resources at Abujar
Abujar's current resource is 87.5 million tonnes at 12 g/t gold for 3.35 million ounces, with 73% of the resources contained in the AG deposit and 1.65 million ounces in the indicated category.
The higher confidence resources bodes well for a higher reserve position, which is currently at 860,000 ounces at 1.7 g/t gold, implying a plus 1.3-million-ounce potential.
It noted that the higher anticipated inventory justifies the increase in project scale from 3.5 million tonnes per annum (PFS) to 4.0 million tonnes (DFS), providing increased production levels and maintaining long mine-life of plus 10 years.
Early works are underway with FEED activities, camp construction and some site prep.
Infill resource drilling is ongoing with six rigs active.
The current program is aimed at upgrading some of the indicated open pit resource at AG core into measured – derisking the first two years of planned production.