- Tietto Minerals’ (TIE) definitive feasibility study (DFS) for the Abujar gold project in West Africa delivers positive outcomes
- In its first year the project is forecast to produce 260,000 ounces of gold and an average of over 200,000 ounces of gold per year for the first six years
- Over its 11-year life, the project is tipped to generate US$2.87 billion (A$3.95 billion) in revenue with a payback period of less than one year from production
- Project works are expected to begin before the end of the year and Tietto is targeting first gold production in the final quarter of 2022
- Company shares are up 6.58 per cent to trade at 40.5 cents at 2:18 pm AEST
Tietto Minerals (TIE) has reported positive results from an open pit definitive feasibility study (DFS) for its Abujar gold project in Côte d’Ivoire, West Africa.
The Abujar Gold Project has a current mineral resource of 87.5 million tonnes at 1.2 grams of gold per tonne (g/t) for 3.35 million ounces. It also has open cut ore reserves of 34.4 million tonnes at 1.3g/t gold for 1.45 million ounces.
The DFS outlined that the Abujar was forecast to produce 260,000 ounces of gold in its first year at an all-in sustaining cost (AISC) of US$651 (A$894) per ounce. This marks a 30 per cent increase over the pre-feasibility study (PFS) metrics.
Over the first six years, the project is expected to produce an average of over 200,000 ounces of gold per year. This is a 20 per cent increase from the average production outlined in the PFS.
However, the company believes it can expand the gold production profile through drilling and has engaged mining consultancy, Entech, to review an underground scoping study using pit limits defined in the DFS.
Prior to production, the project will require US$200 million (A$274.9 million) to get it off the ground, including contingencies. This marks a 13 per cent decrease from the PFS.
The Abujar Gold Project has an 11-year mine and processing life and a payback period of less than one year from first production. Over its mine life, the project, is tipped to generate US$2.87 billion (A$3.95 billion) in revenue.
It also has a life-of-mine pre-tax cashflow of US$1.28 billion (A$1.76 billion) and US$1.52 billion (A$2.09 billion) in earnings before interest, tax, depreciation and amortisation.
Managing Director Caigen Wang commented on the DFS outcomes.
“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 one gold mine,” Dr Wang said.
“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.”
Early site works have begun which are focused on access road upgrades, site infrastructure and camp construction.
Work on the project is expected to begin before the end of the year with a 12-month construction schedule. Tietto is targeting first gold production in the final quarter of 2022.
Tietto said it’s well-funded, with around $31 million in cash as of September 30.
Company shares were up 6.58 per cent to trade at 40.5 cents at 2:18 pm AEST.