Tietto Minerals Ltd (ASX:TIE) has added considerable upside to its open-pit mining plan for the Abujar-Gludehi (AG) deposit within the 3.35-million-ounce Abujar Gold Project in Côte d’Ivoire, West Africa, with a high gold hit of 152.24 g/t.
The bonanza-grade intersection came from extensional drilling 150 metres beneath the AG South Pit 4, some three kilometres south of the AG Core deposit, and was within 3 metres at 79.78 g/t gold from 227 metres including 2 metres at 119.07 g/t.
Tietto also intersected notable gold hits from infill drilling within the AG Core deposit, including:
- 5 metres at 14.44 g/t from 91 metres including 2 metres at 35.58 g/t;
- 9 metres at 6.03 g/t from 82 metres including 4 metres at 13.23 g/t; and
- 5 metres at 10.16 g/t gold from 74 metres.
The market appears to have welcomed news of these results, raising Tietto’s share price 8.87% to $0.43 a share intraday, with the company's market cap at approximately $245.8 million.
Infill drilling has been focused on converting the Abujar project’s indicated resources to the measured category, specifically targeting the first two years of Abujar’s gold production.
Path to production well paved
“Our seventh 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,” Tietto Minerals managing director Dr Caigen Wang 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 designed to deliver resource growth at Abujar. It was very pleasing to see that ZDD847A hit high-grade gold 150 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.
“Construction work is on schedule as we develop the Abujar Gold Project into West Africa’s next gold mine.”
Next steps
Tietto is awaiting assays for 84 more drill holes totalling 18,317 metres, with six diamond drill rigs active on-site. Assays are expected in January 2022, with the next resource update due later in the same quarter.
The Abujar definitive feasibility study demonstrated robust financial results, with first-year production estimated at 260,000 ounces and a further 200,000 ounces per year over the first six years of the project’s 11-year mine life.
This provides Net Present Value with a 5% discount of A$1.3 billion (pre-tax) and A$0.97 billion (post-tax) using US$1,700/ounce and a currency conversion rate of A$/US$=0.74.
Tietto is now funded through to production at Abujar, with construction work underway targeting first gold at Abujar in the fourth quarter of 2022.
The company is negotiating the final regulatory step – the Abujar Mining Convention – with the Ivorian Government, having already secured all mining and environmental approvals.
Tietto owner’s team is focused on construction of the process plant and associated infrastructure and has commenced activities to ensure an expedited route to gold production at Abujar.