THE CONFERENCE CALLER: Tietto Metals (ASX: TIE) listed on the ASX in January 2018 with its eyes firmly on development of the Abujar gold project in Côte d’Ivoire, West Africa.
The Abujar gold project comprises three contiguous exploration tenements, Middle, South and North, covering a total land area of 1,114 square kilometres, of which less than 10 per cent has been explored.
Tietto wasted little time, hitting project with an aggressive.drill campaign that quickly grew gold Resources at Abujar to 87.5 million tonnes at 1.2 grams per tonne gold for 3.35 million ounces.
These included mineral resources for the AG deposit of 50.3 million tonnes at 1.5g/t gold for 2.45 million ounces; and
Mineral Resources for the APG deposit of 36.7 million tonnes at 0.7g/t gold for 0.87 million ounces.
These results increased indicated Resources by 49 per cent, taking them to 43.4 million tonnes at 1.3g/t gold for 1.85 million ounces of contained gold, representing more than 55 per cent of the current project ounces.
Tietto recently announced results of a Definitive Feasibility Study for the Abujar gold project, based on an open-pit 4 million tonnes per annum operation.
Highlights from the DFS included:
260,000 ounces of gold forecast in first year of production (30% increase over the PFS) at an AISC of US$651 per ounce;
2 million ounces of gold production forecast over first six years for 200,000 ounces per annum (20% increase over the PFS) at an average AISC of US$804/oz;
Updated Open Pit Probable Ore Reserves have grown to 34.4Mt at 1.3 g/t Au for 1.45Moz using US$1,407/oz (68% increase over the PFS and 78% of Indicated Mineral Resources); and
Life of Mine (LOM) mining inventory inclusive of Ore Reserves of 44.9 million tonnes at 1.2g/t gold for 1.7 million ounces gold recovered (54% increase over the PFS) for a strip ratio of 6:1 w:o;
Payback period post-tax of less than one year from first production.
“Our recent update to the Abujar Resource Model has allowed Tietto to deliver a DFS that confirms Abujar’s potential to be one of the largest gold producing mines in Côte d’Ivoire,” Tietto Metals managing director Dr Caigen Wang said on release of the DFS results.
“The DFS metrics are clearly compelling – all PFS measures have materially improved, from production to finance.
“Gold production in particular is positioning Abujar as a Tier 1 gold mine.
“We are confident the Abujar gold project will continue to enjoy growth in both Resources and Reserve and hence LOM production increases into next year through our continued large-scale drilling program.
“We are focused on advancing the Abujar gold project towards becoming West Africa’s next gold mine.”
Latest drilling at the AG deposit returned favourable results, including:
ZDD665 – Section 24A
22 metres at 5.62 grams per tonne gold from 97m, including 5m at 17.87g/t gold
2m at 59.77 g/t gold from 54m
ZDD685 – Section25A
6m at 17.01g/t gold from 61m, including 2m at 50.35g/t gold
ZDD671A – Section 24A
14m at 2.87g/t gold from 136m, including 4m at 9.19g/t gold
“Our third batch of results from our infill drilling program at Abujar is delivering up more high-grade gold intercepts that continue to de-risk open pit mining at Abujar,” Wang, said.
“The infill program is designed to convert Indicated Resources to Measured Resources, which are scheduled to be mined within the first two years of production.
“These impressive results follow hard on the heels of our DFS…that confirmed Abujar’s potential to be one of the largest gold producing mines in Côte d’Ivoire with more than 260,000 ounces of gold expected to be produced in the first year and 1.2 million ounces of gold in the first six years.”