Tietto Minerals has revealed a new nine-year life-of-mine plan for its Abujar gold mine after updating its mineral reserves.
The company today outlined new plans for the mine to operate from next year to 2032 and management has estimated the average yearly production at 170,000 ounces of gold. The Abujar gold project in western Côte d’Ivoire is West Africa’s newest gold mine and Tietto celebrated its first gold pour in January.
Management also today unveiled a production head grade of 1.04 grams per tonne gold, assuming an increased plant throughput of 5.5 million tonnes per annum by 2025 for the total production of 1.53 million ounces of gold.
Tax and cashflow sums are all based on a US$1900 (AU$2990) per ounce of gold price, but Tietto is confident Abujar will be operating with nearly the lowest life-of-mine processing costs within the West African gold mining industry of just US$7.13 (AU$11.22) per tonne.
The company also predicted a strip ratio of 5.74 and measured and indicated resources that comprise 75 per cent of life-of-mine production, with inferred resources comprising the remaining 25 per cent. The total proved and probable ore reserves are now estimated at a respectable 36.7 million tonnes at 1.15g/t gold for 1.36 million ounces, which is a sizeable increase on the previous numbers published in a 2021 definitive feasibility study (DFS).
However, the reserves have decreased by 93,000 gold ounces, largely due to mining depletion this year and lower average grades announced in the company’s mineral resource estimate in April.
Ore reserves at the main AG project now total a considerable 31.2 million tonnes of ore at 1.22g/t gold, containing 1.22 million ounces of gold, with the Abujar‐Pischon‐Golikro (APG) deposit ore reserves at 5.4 million tonnes of ore at 0.77g/t gold, containing 0.13 million ounces of gold.
We are pleased to finalise this updated Life of Mine Plan for our Abujar Gold Mine as we continue to ramp up gold production. The updated LOMP shows AISC of US$982/oz over the life of the mine, and strong average nine-year production of 170,000oz per year at a life of mine head grade of 1.04 grams per tonne gold. This updated LOMP demonstrates just how strongly Abujar can perform over a longer timeframe, which will become apparent as our mining contractor begins to generate stockpiles enabling grade selection for mill feed. Tietto Minerals managing director and chief executive officer Matt Wilcox
Tietto has become West Africa’s newest gold producer, generating more than 25,000 ounces of gold at Abujar, with 9520 ounces produced in this year’s March quarter and 15,592 ounces in the June quarter – a significant improvement. The first gold pour came less than 18 months after it began construction activities on the Abujar process plant.
The core AG deposit provides the majority of the gold produced at several Abujar open pits, all within 1km to 2km of the plant site and several satellite pits located along strike to the north and south.
Last year, Tietto identified an opportunity to create a second stand-alone mine at its APG deposit. A scoping study found a heap leach gold processing operation could deliver an additional 85,000 ounces of gold per year for 10 years.
Management says gold grades have improved since mining started and that digging deeper to access fresh rock and grade-control drilling in the June quarter reconciled to the resource block model by plus or minus 10 per cent. It says the continuity of both grade and geology are in line with its expectation of Abujar’s mineralisation and infill drilling supports the interpretation of grades and geological structures through several-hundred metres.
During September, 10,962 gold ounces were produced at Abujar. However, production was lower than forecast as rain substantially impacted scheduled contractor mining volumes, reducing both total mill feed and preventing Tietto from establishing stockpiles. October typically experiences reduced rainfall and is the start of the dry season on the Ivory Coast.
Tietto has an audited closing cash and bullion balance increased to $45.3 million, as of September 30. Cash and bullion balances (before debt repayments) increased by a cumulative $18.3 million in the September quarter.
And, importantly, Tietto has no debt, with zero gold hedging.
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