Infill drilling at Tietto Minerals’ (ASX: TIE) Abujar project in Côte d’Ivoire has unearthed up to 174.9 grams per tonne gold, as on-site activity ramps up to first gold pour at the end of the year.
Drilling is underway at the AG Core deposit, with the latest highest-grade intercept hit 60m below the current pit design in the definitive feasibility study – providing more upside for the operation.
Latest highlight assays from AG Core were 8m at 11.38g/t gold from 262m, including 0.5m at 174.9g/t gold; 6m at 9.1g/t gold from 180m, including 2.5m at 21.5g/t gold; and 2m at 11.19g/t gold from 261m.
Tietto managing director Dr Caigen Wang noted the deeper extensional drilling at AG Core had confirmed gold mineralisation is present up to 150m below the current resource model.
“These wide-spaced results have given our exploration team encouragement that further deeper drilling could intercept high-grade shoots at depths below these pierce points,” he added.
All the latest assays will feed into a resource update for the project, which is expected early next year.
Meanwhile, eight diamond rigs are on-site and actively drilling, with a total of 120,000m expected to have been completed in 2022.
Further drilling will be undertaken at AG Core to test mineralisation below the pit.
Delivering first gold
Abujar’s current resource contains 3.45 million ounces of gold.
Construction is underway at the project with first gold anticipated before year-end.
“We have no debt and 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 260,000oz of gold in the first year and 1.2Moz of gold in the first six years,” Dr Wang said.
He added the company’s experienced team would deliver the project on-time and on-budget.
“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 CY2022.”
A definitive feasibility study was released for Abujar in October last year. The study gave the project an initial 11-year mine life, with a pre-tax net present value of US$1.2 billion, based on a US$1,900/oz gold price.
Based on the same gold price life-of-mine revenue of US$3.21 billion was forecast. On a US$1,770/oz gold price, assumed life-of-mine revenue totals US$2.87 billion, which would generate pre-tax cash flow of US$1.28 billion over the period.
