Tietto Minerals Ltd (ASX:TIE) has again grown its flagship Abujar Gold Project in Côte d’Ivoire in West Africa, with the latest drilling results returning more high-grade gold.
Abujar, which is forecast to produce 200,000 ounces of gold annually, is being developed as we speak, with first gold on track to be poured in December next year.
The latest round of infill, step-out and extensional drilling, conducted at the AG Core, AG South and PGL targets respectively, returned high-grade intersections including:
- 7 metres at 11.87 g/t gold from 83 metres including 3 metres at 27.3 g/t;
- 8 metres at 7.17 g/t from 120 metres including 1-metre at 54.56 g/t;
- 7 metres at 9.38 g/t from 254 metres including 1.5 metres at 42.98 g/t; and
- 5 metres at 11.34 g/t from 131 metres including 2 metres at 26.78 g/t.
Abujar’s bright future
Tietto managing director Dr Caigen Wang said the latest results gave the company further confidence of Abujar’s full potential when commissioned and online.
“Our sixth batch of results from our infill drilling program at AG Core has delivered more high-grade gold intercepts that will de-risk open pit mining at Abujar,” he said.
“Our infill program is designed to convert indicated resources to measured resources, which are scheduled to be mined within the first two years of production.
“We also have diamond rigs working at AG South and PGL on extensional and step-out drilling that is designed to deliver resource growth at Abujar. It was very pleasing to see that ZDD814 hit high-grade gold 120 metres below the DFS pit and outside the current resource.
“With our recent capital raise, we are now funded to production with Abujar having potential to be one of the largest gold producing mines in Côte d’Ivoire, expected to produce more than 260,000 ounces of gold in the first year and 1.2 million ounces of gold in the first six years.”
Fully funded and attractive
As covered by Proactive, Tietto secured crucial funding for the development of Abujar, landing a significant investment from $4.6 billion Chinese resources business Zhaojin Mining.
That investment followed news that it had secured US$130-140 million in capital from Taurus Mining Finance.
Zhaojin’s investment was part of a heavily oversubscribed A$85 million placement, with Tietto receiving binding commitments for the placement through the issue of 218 million fully paid ordinary shares at A$0.39 per share.
“We welcome the support of the high-quality institutions that have provided the equity funding needed to develop the Abujar Gold Project into West Africa’s next gold mine,” Wang said.
Tietto also received a buy recommendation and attracted a price target of A$0.96 per share in a research note from Petra Capital.
“The target share price of A$0.96 is predicated on a long-term (post-2024) gold price of US$1,600/ounce,” the note said.
“At spot prices of US$1,850/ounce, that target price increases to A$1.16 per share. TIE shares are trading at A$0.415.
“Strong financial and operational modelling suggests that the project is set to produce 260,000 ounces of gold at US$651/ounces in its first 12 months.”
Next steps
Tietto is focused on driving rapid resource growth at Abujar, which currently stands at 3.35 million ounces.
It is targeting 100,000 metres of diamond drilling in 2022 using six company-owned diamond drill rigs, testing 8.5 kilometres of fertile Abujar main shear along strike from the existing AG and APG deposits.
- Daniel Paproth