• Noel Ong

DFS for the Abujar Gold Project - Reasons Why Tietto Is A Money-Making Machine.

Rooster Talk Episode 48 is a Simple Gold Mining Story with Mark Strizek, Executive Director of Tietto Minerals Limited (ASX:TIE)


Today's Rooster Talk is about the recent release of the DFS and the conversation is more than casual. As I have mentioned in the previous Coffee with Samso Episode 100 (our milestone episode) with Mark, my takeaway was - this is essentially a Simple Gold Mining Story.


The jury is out for Tietto Minerals Limited (ASX: TIE) as they release the Definitive Feasibility Study (DFS) for the Abujar Gold Project. As Mark Strizek, the Executive Director, puts it, it's knocking people's socks off.


The 54% global resource upgrade from the Pre-Feasibility Study that was released earlier is a testament to how good the Abujar Gold project is. The AISC for the first year is less than USD$900 and the next six years of production is at less than USD$1000.

This is a great conversation about what a good gold project should look like.


Watch the interview: Rooster Talk Episode 48



Chapters


00:00 Start

00:57 Mark shares the DFS story.

01:28 A very good payback period.

02:12 Lots of fat in the Gold price for Tietto.

02:52 Extremely good AISC

04:23 Orebody is not closed off.

05:03 Is new drilling going to make any difference to the DFS?

05:57 The DFS leaves no questions on the table.

06:52 There is a trend within the orebody for good grades.

08:39 What is the processing for Abujar?

10:31 A big 4M Mill.

12:40 A Great Resource for Heap Leaching.

14:16 Good Geology gives you Good Surprises.

14:42 Is a redesigned stripping ratio helping reduce costs?

16:46 A better stripping ratio is always good.

17:09 All about cost savings.

17:39 Is the upgrade on the PFS numbers expected?

18:33 The 54% question.

19:30 What does Mark think of the gold price, going forward?

21:31 What will the potential be from future drilling?

23:39 Abujar is in Elephant country.

26:47 Thoughts on ESG for Tietto.

29:28 The Key to Tietto success is savings on Drilling.

31:08 Main difference between Tietto and other near-producers is the ability to drill cheaply.

32:00 Mark's Words of Wisdom.

32:59 Conclusion


PODCAST



About Tietto Minerals Limited (ASX: TIE)


Tietto Minerals Limited (ASX: TIE) is focused on fast-tracking the development of the Abujar Gold Project in Côte d’Ivoire, West Africa, targeting the first gold in Q4 CY2022.


Following an aggressive drilling campaign, Tietto announced an increase in its Mineral Resource Estimate at the Abujar Project in July 2021. This included growth in gold resources to 87.5Mt @ 1.2 g/t Au for 3.35Moz, including:

  • AG mineral resources total 50.3Mt @ 1.5 g/t Au for 2.45Moz (+7% oz Au)

  • APG mineral resources total 36.7Mt @ 0.7 g/t Au for 0.87Moz (+24% oz Au)

These results boost the Abujar Indicated Resources by 49% to 43.4Mt @ 1.3 g/t Au for 1.85Moz of contained gold, representing more than 55% of the Abujar project ounces.


Tietto has a 50,000m diamond drilling program underway targeting de-risk and resource growth using its fleet of six diamond drill rigs. The program includes:

  • Infill drilling at AG targeting the first two years of production.

  • Resource growth from drill testing of targets located within a 10km radius of the proposed AG mill.

  • Drill testing high priority regional targets.

Tietto is rapidly advancing Abujar's development with an early work program including front end engineering and design (FEED) and site and camp construction underway.


In April 2021, Tietto completed the Abujar Gold Project Pre-Feasibility Study (PFS) for an open-pit 3.5Mtpa operation. Highlights included:

  • Forecast annual production of 200,000 ounces gold in first year of production; more than 168,000 ounces per annum over the first 6 years of project

  • Maiden Open Pit Probable Reserves of 15.7Mt ROM at 1.7 g/t Au for 860,000oz (over 65% conversion of Indicated Resources)

  • LOM mining inventory inclusive of Ore Reserves of 9Mt ROM at 1.5 g/t Au for 1.1Moz2 at Average All‐in Sustaining Costs (AISC) of $839/oz

  • 2.8 year payback from the commencement of construction on $230 million CAPEX (including pre‐production mining and contingency)

  • Strong economics ‐ pre‐tax NPV (5%) of $363M, IRR 53% and post‐tax NPV (5%) of $266M, IRR 42% based on an average gold price of US$1506/oz.

Tietto expects to deliver a Definitive Feasibility Study (DFS) for Abujar in Q3 CY2021.


Abujar Gold Project

Côte d’Ivoire, West Africa


The Abujar Gold Project is located approximately 30km from the major regional city of Daloa in central-western Côte d’Ivoire. It is close to excellent regional and local infrastructure to facilitate exploration and development being only 15km from the nearest tarred road and grid power. The Abujar Gold Project is comprised of three contiguous tenements with a total land area of 1,114km2, of which less than 10% has been explored. It features an NNE‐orientated gold corridor over 70km striking across three tenements.



In April 2021, Tietto announced the results of the Abujar Gold Project Pre-Feasibility Study (PFS) for an open-pit 3.5Mtpa operation. Highlights included:

  • Forecast annual production of 200,000 ounces gold in the first year of production; more than 168,000 ounces per annum over the first 6 years of the project;

  • Maiden Open Pit Probable Reserves of 15.7Mt ROM at 1.7 g/t Au for 860,000oz (over 65% conversion of Indicated Resources)

  • LOM mining inventory inclusive of Ore Reserves of 22.9Mt ROM at 1.5 g/t Au for 1.1Moz at Average All‐in Sustaining Costs (AISC) of $839/oz

  • 2.8-year payback from the commencement of construction on $230 million CAPEX (including pre‐production mining and contingency)

  • Strong economics ‐ pre‐tax NPV (5%) of $363M, IRR 53% and post‐tax NPV (5%) of $266M, IRR 42% based on an average gold price of US$1506/oz.

Full details are available in the Abujar PFS announcements.

In July 2021, Tietto increased its Mineral Resource Estimate for the Abujar Gold Project following a 54,000m diamond drilling campaign. As a result of the campaign, gold resources grew to 87.5Mt @ 1.2g/t Au for 3.35Moz:

  • AG mineral resources total 50.3Mt @ 1.5 g/t Au for 2.45Moz (+7% oz Au)

  • APG mineral resources total 36.7Mt @ 0.7 g/t Au for 0.87Moz (+24% oz Au)

These results are an increase in indicated resources by 49% to 43.4Mt @ 1.3g/t Au for 1.85Moz of contained gold, representing more than 55% of the project ounces.


Full details of the increased Mineral Resource Estimate are available in the ASX announcement dated 12 July 2021.


Plans for 2021

A 50,000m diamond drilling campaign is underway targeting de-risk and resource growth using Tietto’s fleet of six diamond drill rigs.

The campaign includes:

  • Infill drilling at AG targeting the first two years of production.

  • Resource growth from drill testing of targets located within a 10km radius of proposed AG mill.

  • Drill testing high priority regional targets.

Tietto is rapidly advancing Abujar development with an early work program including front end engineering and design (FEED), and site and camp construction underway.


Tietto is targeting the first gold at Abujar in Q4 CY2022.


Tietto expects to deliver a Definitive Feasibility Study (DFS) for Abujar in Q3 CY2021.


About Mark Strizek

Executive Director


Mr. Strizek has more than 20 years of experience in gold exploration, resource development and operations of open pit and underground projects ranging from the Kalgoorlie super pit to high-grade projects such as Frogs Leg in the Eastern Goldfields, Western Australia. Prior to joining ASX-listed Vital metals limited as Chief Executive Officer, Mr. Strizek was involved in the project development of mineral, coal and petroleum resources in both Australia and Papua New Guinea.

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