Tietto Minerals Ltd (ASX:TIE)’s development of the fully-funded 3.35-million-ounce Abujar Gold Project in Côte d’Ivoire in West Africa is gaining momentum and the project remains on track for first gold pour in the fourth quarter of 2022.
The construction of the camp accommodation has started with plant infrastructure civil contracts awarded.
Further, platework and structural steel fabrication contracts have been awarded.
Primero has so far completed 75% of the engineering and procurement (EP) work, and the ECG plant electrical is on track, with 35% of work completed.
The Sag Mill is also on track for delivering to Côte D’Ivoire in the second quarter of 2022.
West Africa’s next gold mine
Tietto managing director Dr Caigen Wang said: “I am very pleased to provide shareholders with our first project development update for Abujar.
“With our recent capital raise, we are now fully 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.
“We will provide monthly updates as we track towards first gold by the end of Q4 CY22 as construction advances the Abujar Gold Project to become West Africa’s next gold mine.”
Construction
The access road to the site has been completed and earthworks have commenced on the site of the process plant and camp.
Engineering & drafting
The process design has been completed while the primary crushing chamber backfill and drainage drawings have been issued for review.
Drawings are in development with the aim of issuing for construction progressively from January 2022.
The overall electrical design and drafting progress for the electrical plant design is 35% complete and tenders have been received for MCCs and are under evaluation.
As for the electrical power line, the tower steel has been shipped and is due in Abidjan on December 23, 2021.
Procurement
The remaining mechanical equipment, including structural steel and platework contracts have been awarded.
Construction of the first 120 camp rooms, the main administration building and the restaurant were awarded to local contractors.
Next steps
Tietto’s A$85 million placement complements its debt strategy, with Taurus Mining Finance Fund No.2 LP mandated to deliver an underwritten project development facility of up to US$140 million of debt funding for the US$200 million project.
The West African gold explorer and developer is now very well positioned to advance its dual strategy into 2022 of continuing to drive rapid resource growth and fast-track the development of Abujar to achieve first gold in the fourth quarter of 2022.
The company continues to deliver milestones during 2021 and key findings from its definitive feasibility study (DFS) demonstrated robust financial results and estimated gold production of 260,000 ounces in the first year and 200,000 ounces per year over the first six years of its 11‐year mine life.
It is also negotiating the final regulatory step, the Abujar Mining Convention, with the Ivorian Government.