Tietto Minerals Ltd (ASX:TIE) has recorded a project-best intersection of 1.1 metres at 2,853 g/t gold within 25.37 metres at 131.05 g/t during infill drilling on the main Abujar shear at its 3.35-million-ounce Abujar Gold Project.
The West African gold explorer and developer announced the bonanza-grade gold results at the Abujar-Gludehi (AG) Deposit, part of the 3.35-million-ounce project in Côte d’Ivoire.
“This fantastic intercept of 1.1 metres at 2,853 g/t gold from our infill drilling program at AG is our best achievement to date,” Tietto managing director Caigen Wang said.
“This bonanza gold intercept is located close to the surface in fresh mineralisation and combined with the multiple high-grade intercepts we have reported from our infill drilling, it is expected these will have a material impact on the first years of open pit mining at Abujar.”
Investors also welcomed the results, driving shares as much as 13.27% higher to $0.55, a new high of more than 12 months.
Highlights
25.4 metres at 131.1 g/t gold from 36.6 metres in ZDD895 – Section 14B, including 8 metres at 393.6 g/t from 38 metres and 3.4 metres at 917.6 g/t, including 1.1 metres at 2,853 g/t, and 12 metres at 14.6 g/t from 50 metres, including 2 metres at 84.5 g/t.
Diamond hole ZDD895 is part of Tietto’s recently completed AG Core infill drilling, a program set up to convert Abujar’s indicated resources – currently 35 million tonnes at 1.5 g/t for 1.65 million ounces - to a measured resource. The company is targeting the project’s first two years of gold production.
In February, Tietto expects assay results for 61 drill holes (9,329 metres). Until then, six diamond drill rigs continue actively drilling. The next resource update is due at the end of the first quarter of the year.
The company’s definitive feasibility study (DFS) for Abujar has demonstrated robust financial results and estimated first-year gold production of 260,000 ounces and 1.2 million ounces over the first six years of Abujar’s 11-year mine life for a net present value of $1.3 billion pre-tax and $0.97 billion post-tax using US$1,700 per ounce and a conversion rate of 74 US cents in the dollar.
Targeting first gold
The company is now funded to production, and with construction progressing on schedule, it’s targeting first gold at Abujar by the end of the year.
“Our exploration team is using these latest results to refine our drill targeting of the high-grade shoots within the Abujar main shear,” Wang said.
“Results from our drilling continue to demonstrate high grades present in this large system and with more than 70 kilometres of strike at Abujar and achieving 100,000 metres of drilling a year, we think there is great potential to deliver more intersections like these.”
“With completed settlement of the second tranche of our recent capital raise, we are now fully funded to production at Abujar, which has 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 are well-positioned to execute our dual strategy in 2022; our exploration team has recently commenced drilling 100,000 metres of diamond core this year to drive resource growth, and our building team is advancing construction work on schedule as we develop the Abujar Gold Project into West Africa’s next gold mine.”
