• Noel Ong

Tietto Minerals Limited - A Simple Gold Mining Story

A milestone to celebrate: Coffee with Samso reaches our 100th episode today with Mark Strizek, Executive Director of Tietto Minerals Limited (ASX:TIE)



YES! We've done 100 episodes of Coffee With Samso! Every single cup of coffee has led to deeper and more insightful conversations with thought leaders across companies, providing investors with comprehensive knowledge and shared experience so they can make their best, well-informed decisions.


Our 100th episode warrants a toast (and we have our coffee ready brewing on the pot). So we decided to celebrate by inviting back Mark Strizek, who was our inaugural guest of Coffee with Samso, to share with us his company's journey here on Coffee with Samso Episode 100.


I've been chasing this story since 2018 as I believed in Tietto's journey. Now in 2021, it is great to see the results bearing fruit for its shareholders.


The message is simple in today's story.


Drilling is important. If you do not drill you cannot grow.

And I believe this is one of the easiest gold mining stories that I have ever come across.


A Simple Gold Mining Story


The Abujar Gold Project may be in Côte d’Ivoire, West Africa but don't let the geographical distance scare you off. Let us tell you why it is a simple mining story.


Tietto Minerals (TIE) saved over USD60M by having their own drill rigs. This is money Tietto's shareholders have saved since 2018. - Mark Strizek

Mark Strizek tells us about how the founder of Tietto, Caigen Wang went about finding and now developing the Abujar Gold Project. One of Mark's stories was that Caigen saw the number of people working in the mine and immediately realised that this is a mine waiting to be developed.



Cote d'Ivoire is a place that is rich in minerals and is blessed with greenstones (See Figure below under Abujar Project) It is not that much different to those we see in the Kalgoorlie Goldfields. There have been numerous multi million ounces of gold discovered in the country and the pro-economic government is a bonus.


ESG (Environment, Social, Governance) is something that is at the forefront of Tietto's challenges to make the mine a reality. Mark shares with us what has been happening and why they are making this a no-event. There appears to be no deal breaking events in front of the company as they progress aggressively to get the first gold bar poured for shareholders.


Tietto is taking ESG seriously and the company has even contracted RPMGlobal to provide specialist ESG advice for their Abujar project. An Ivoirian company, Envitech, has been engaged to conduct the baseline fieldwork to compile an environmental and social impact assessment.

(Source: https://www.tietto.com/wp-content/uploads/2020/04/02225304.pdf)


Watch the interview: Coffee with Samso Episode 100



Chapters


00:00 Introduction

01:15 Mark presents Samso a 100th Episode present!

01:50 All about the Abujar Gold Project

06:58 It's all about the shareholders

07:46 Why are you comfortable with the Tietto story?

11:58 The Roll of the Dice.

12:31 Focusing on the prize.

13:30 Saving USD60M on drilling.

14:48 What is happening with Tietto now?

23:50 What is the capital market saying about Tietto?

29:36 What could go wrong?

31:50 The Good News.

33:47 What happens from here?

36:22 How does the exploration differ in Africa?

40:26 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 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 a 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 first two years of production.

  • Resource growth from drill testing of targets located within 10km radius of 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 pay back from 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 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 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 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 pay back from 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 first two years of production.

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

  • Drill testing high priority regional targets.

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


Tietto is targeting 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 project development of mineral, coal and petroleum resources in both Australia and Papua New Guinea.


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