Tietto Minerals Ltd (ASX:TIE) has secured a speculative buy rating and price target of $0.75/share from Euroz Hartleys as it continues to advance its +3 million ounce Abujar Gold Project in Côte d’Ivoire.
The company recently returned some very high-grade results reported from infill drilling at AG South with results including:
- 5 metres at 109.06 g/t from 99 metres, including 1-metre at 532.05 g/t;
- 4 metres at 26.05 g/t from 63 metres, including 1-metre at 50.75 g/t;
- 12 metres at 3.31 g/t from 93 metres, including 2 metres at 17.31 g/t;
- 3 metres at 8.43 g/t from 159 metres, including 1-metre at 24.06 g/t; and
- 3 metres at 6.13 g/t from 37 metres, including 1-metre at 17.73 g/t.
There is also potential for the planned open pit to be extended at depth, with a scissor hole drilled to confirm orientation and assays pending for a hole drilled up-dip.
Aggressive drilling program
TIE continues to de-risk the development of the Abujar gold project, with the aim of becoming West Africa’s next gold mine.
Euroz said: “The recent PFS study outcomes were largely in-line of our expectations, and the report also included an expanded case, which adds more open pit ore and a potential underground at AG, extending mine life and sustaining higher production +10 years.
“The maiden PFS reserve is interim and set for significant growth, as ongoing drilling (6 rigs active) increases ounces and confidence in the mine plans.”
Euroz also said it was impressive that TIE expects to complete 50,000 metres of drilling (6 rigs and around 11,000 metres/month) before the next resource update, and 100,000 metres of drilling in CY21 at low rates of US$35/metre.
In the June quarter work will also include FEED along with camp construction and some early works.
Resource upgrade and DFS activities
The next resource update is due this quarter (late JunQCY21) for updated reserves in the DFS, which remains on target for Q3CY21 release.
“The upgraded resource will inform updated reserves for the DFS which has a targeted release of Q3 CY21 – the PFS recently released highlighted Abujar as a highly feasible, financially attractive project development.
“On our production forecast TIE appears undervalued with an EV/EBITDA of ~1x FY23 and <1x FY24.
“TIE retains strong cash of $52 million, well-funded to complete DFS activities, we maintain our Speculative Buy.”