Abujar Gold mine Project in Cote D’Ivoire.
Construction of the Abujar Gold mine project in Cote D’Ivoire.
Amount – $2 billion.
Tietto Minerals has tabled a lovely set of definitive feasibility numbers for its Abujar gold project in Africa that it says will make over A$2 billion in EBITDA over the initial 11-year mine life.
The company has estimated an extraordinary pre-tax net present value of A$1.3 billion for the project and says it can pay back the US$200 million in capital required to build it in less than a year with an off the scale internal rate of return of 115 per cent.
The DFS numbers have significantly outperformed its initially estimated pre-feasibility figures.
Production is now projected to increase by 30 per cent in the first year to a whopping 260,000 ounces and by 20 per cent across the initial 6 years of production to 1.2 million ounces, averaging around 200,000 ounces a year a figure that would place it amongst the mining glitterati if the mine was in Western Australia.
The definitive feasibility study has boosted ore reserves at the project by 68 per cent over pre-feasibility numbers to 34.4 million tones at 1.3 g/t gold for 1.45 million ounces. Interestingly 78 percent of the new reserve now sits at the higher confidence indicated category.
On January 2023, Tietto Minerals, a gold explorer, and developer, has commenced wet commissioning at its Abujar Gold mine Project in Cote D’Ivoire.
A sizable supply of ore has already been set up to supply the processing plant, which the company has already started commissioning.
Abujar should consequently result in a considerable rise in gold production in Cote D’Ivoire in 2023.
Abidjan is one step closer to its objective of raising production to 65 tones of gold by 2025.
The stellar results increased Tiettos initial life of mine inventory, inclusive of ore reserves, to 44.9 million tones at 1.2 g/t gold for 1.7 million ounces of gold.
Tiettos Abujar Gold Project in western Cote D’Ivoire is a mere 30 kilometers from Daloa, the nation’s major regional city and according to the company, this will aid in the projects continued development.
The Abujar gold project includes three continuous tenements over a highly prospective and largely uncharted land package of 1,114 square kilometres.
A 70km gold corridor strikes across each of these tenements.
Life of mine revenues are expected to weigh in at a hefty US$2.87 billion with pre-tax free cash flows contributing US$1.28 billion to the $190 million market capped company.
Market pundits were quick to lap up news of the increased production figures with Tiettos stock touching $0.44 in intraday trading of a closing price yesterday of $0.38.
Notably, it still has a few opportunities to increase its DFS production figures even further including a 30,000m infill drilling program to increase the measured resource and a 5,000m campaign targeting ore reserves below the Abujar pit.
The company also plans to drill 20 exploration targets close to Abujar.