Tietto strikes 180 g/t gold at flagship Cote d’Ivoire deposit

Tietto Minerals Managing Director, Dr Caigen Wang with Tietto staff in Côte d’Ivoire. Credit: File

ASX-listed aspiring West African gold developer, Tietto Minerals has rattled off another cluster of spectacular gold hits from an ongoing 40,000-metre infill diamond drilling campaign at its three-million-ounce Abujar gold project in Côte d’Ivoire. The company’s latest uber high-grade gold intersection, this time registered at the AG South section of the project’s cornerstone AG deposit, was seven metres going a cracking 51.56 grams per tonne gold from 53m including 1m at 152.70 g/t from 56m and 1m at 180.86 g/t from 57m.

Tietto also reported an eye-popping AG South intercept of 3m grading an average 52.95 g/t gold from 71m including 1m at 121.00 g/t from 71m and 1m at 36.01 g/t from 72m from the recently drilled holes.

The company has now notched up almost half a century of high‐grade gold assay values of greater than 50 gold gram metres from drilling at Abujar.

Its current infill drilling program has been vectoring in on targets sitting in inferred gold resources outside the just released maiden open-cut ore reserves for AG. The ore reserve numbers were 15.7 million tonnes of ore at an average grade of 1.7 g/t for 860,000 ounces of gold within an estimated life-of-mine mining inventory of 22.9 million tonnes of ore at 1.5 g/t for 1.12 million ounces of contained gold.

These results sit outside of the recently announced maiden ore reserve and will upgrade the inferred material making up the mining inventory.

High-impact holes like these will be going into the mineral resource update due in late May. As we combine the updated resource with the enhancements identified in the PFS, I expect to see an uplift in our ore reserves at AG.

Tietto Minerals Managing Director, Dr Caigen Wang

In the company’s bumper Abujar pre‐feasibility study tabled this week, annual gold output for the proposed stand-alone mining and processing operation was expected to average approximately 168,000 ounces per annum across the first six years of production.

Free cash flow of more than $US509 million before tax, or $US50.9 million a year, and free cash flow of $382 million after tax, or $38.2 million a year, were forecast for Abujar’s initial projected life of mine of 10 years, with all-in sustaining costs of production averaging an enviable $US839 an ounce.

A realised gold price of $1,506 an ounce was applied in the financial model.

Tietto says it sees substantial upside to the project’s output and economics being considered in the forthcoming definitive feasibility study.

According to the company, the “compelling” PFS economics support a significant debt financing to the funding mix for Abujar, which has a pre-production and contingency CAPEX of $US230 million ascribed to it.

As it works towards completing a DFS on the proposed development of Abujar in the September quarter this year, the company has also been negotiating an Abujar Mining Convention or tax and fiscal arrangements with the Ivorian Government, being the final regulatory approval required.

Published/Updated by IT on 11/04/[email protected]:32