Tietto Minerals Ltd (ASX:TIE) is likely to further boost the golden bounty at the 3.45-million-ounce Abujar Gold Project in Côte d’Ivoire after receiving further high-grade results of up to 131.3 g/t gold within 5 metres at 40.14 g/t in infill drilling.
The same hole, ZDD1113, also included 2 metres at 25.58 g/t from 97 metres and becomes the latest 200 gold gram metre intersection, taking the tally of these intersections at AG Core deposit to 15.
Other strong new results in 53 diamond holes for 6,583 metres from the AG Core infill program include:
- 1-metre at 69.76 g/t gold from 105 metres; and
- 6 metres at 5.62 g/t from 41 metres.
Extensive drilling
The infill drilling is part of an expanded program targeting the delineation of measured resources over 2.9 kilometres that are expected to be mined during the first two years of Abujar gold production.
Assays are pending for 84 further infill holes for 13,456.2 metres drilled at AG South and AG Core as the company forges ahead with an extensive drill campaign with six diamond rigs active and more than 100,000 metres planned this year.
“More shallow high-grade gold”
Tietto managing director Dr Caigen Wang said: “Our infill drilling continues to add more shallow high-grade gold intersects at AG Core.
"This latest 200 gold gram metre intersect (ZDD1113) has grown our tally to 15 drill intercepts greater than 200 gold gram metres at AG Core.
"We now have 10 of these intersections located between Section Lines 24 to 30 which we will target in our first year of mining at AG Core.
“These results are from an expanded infill drilling program aiming to define measured resources over 2.9 kilometres between Section Lines 0 to 29 at AG South and AG Core expected to be mined during the first two years of production.
"Once this program is completed, our drill rigs will move to the main Abujar Shear, which is still largely untested, and undertake new resource definition drilling.”
On track for production
The next mineral resource estimate update is expected later this year while Abujar remains on track to be West Africa’s next gold mine.
Drilling intersected good widths and grades in AG Core assays received to date with these new results, increasing the tally to 80 intervals greater than 50 gold gram metres, including 15 intervals greater than 200 gold gram metres.
The Abujar DFS demonstrated robust financial results, including an NPV5% of A$1.3 billion (pre-tax) and A$970 million (post-tax) using US$1,700/ounce gold and A$/US$=0.741.
An updated LOM production plan is on track for delivery early this quarter and gold plant construction is on target for first gold during the December quarter.
“Fully funded”
“We are fully funded to production at Abujar, which has potential to be one of the largest gold-producing mines in Côte d’Ivoire, with an expected production of more than 260,000 ounces of gold in the first year and 1.2 million ounces of gold in the first six years,” Dr Wang said.
“Tietto has an experienced team on board to deliver Abujar on time and on budget. We are on track to deliver another mineral resource update this year.
"Shareholders can expect further updates from our aggressive diamond drilling program as we advance our dual strategy of ‘Drill and Build’ and develop our Abujar Project into West Africa’s next gold mine, with first gold by the end of Q4 CY22.”
Drill and Build strategy
Tietto has planned further drilling at AG Core to assess the potential below the planned DFS open pit and test the limits of gold mineralisation, which is still open at depth.
The aggressive work program comes after the company completed a A$130 million two-tranche placement to accelerate development of Abujar, with no debt.
This placement allowed the participation of like-minded investors, keen for Tietto to realise first gold production by Q4 CY22 and produce 260,000 ounces of gold in 2023.
The company remains very well positioned to advance its dual ‘Drill and Build’ strategy throughout 2022.