Tietto Minerals Ltd (ASX:TIE) has retained a Speculative Buy rating and price target of around $0.70 from Euroz Hartley off the back of high-grade results from step-out and regional drilling at the Abujar Gold Project in Côte d’Ivoire.
Encouraging results have been reported from multiple targets including:
- 1-metre at 46.57 g/t gold from surface at GGL – to the north of AG resource;
- 1-metre at 32.58 g/t from 167 metres at Koflankro –1-kilometre west of AG resource;
- 11 metres at 2.17 g/t from 37 metres including 4 metres at 5.09 g/t from step-out activities at APG outside the existing resource;
- 6 metres at 2.76 g/t from 170 metres including 2 metres at 7.67 g/t at GGL – north of AG resource; and
- 7 metres at 1.33 g/t from 20 metres including 1-metres at 7.62 g/t – potential new lode at AG West, further work planned.
Resource expected to grow
The aim of the current drill program of 70,000 metres)is to increase resource confidence and grow resources, with the AG resource at 49.6 million tonnes at 1.5 g/t gold for 2.3 million ounces.
The next resource update is planned for the end of May - which will feed into the DFS scheduled for release Q3 CY21.
Analyst Mike Millikan said: “Exploration upside cannot be understated with current 3 million ounces expected to grow, with ongoing drilling improving resource confidence for optimised mine plans feeding into development studies.
“News flow from drilling will be strong and the PFS delivery a key milestone for the ultimate project development.”
The Abujar PFS is due late March, with the study investigating a potential 3.5 million tonnes per annum open operation and will include a maiden reserve.
The analyst said: “TIE continues to de-risk the development of the Abujar gold project, with the aim of becoming ‘West Africa’s next gold mine’.
“The company recently increased ownership in the project to 88% (at the mining stage) and the PFS, due soon, will be the first look at the economic parameters for the project.
“We envisage average LOM production of around 149,000 ounces per annum with +200,000 ounces per annum potential early in the mine life, also attractive operating costs due to the mining method (open pit) and low power costs.”
Millikan also completed a report in February which detailed that the company was progressing well with just over 50% of the planned 2,500 metres of geotechnical drilling completed, providing valuable information for pit slope design.
New COO appointment
Added to the PFS expectations, the analyst detailed in January how the appointment of new chief operating officer Matthew Wilcox
Millikan said: “The appointment of Matt Wilcox as COO is a good one, especially someone with so much development experience.
“Mr Wilcox recently managed the construction of WAF’s Sanbrado gold mine in Burkina Faso, and has extensive construction experience, particularly in West Africa.”