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A Simple Gold Mining Story from Tietto Minerals Limited

Updated: Apr 13, 2022


"Drilling is important. If you do not drill you cannot grow," says Mark Strizek, Executive Director of Tietto Minerals Limited (ASX:TIE)


Celebrating 100 episodes of ‘Coffee With Samso’ with Mark Strizek


Today, I raise a toast to celebrate 100 insightful and valuable conversations with thought leaders across industries. Samso's unique Coffee with Samso series is where companies engage with shareholders and stakeholders in a clear and insightful way, providing them with a comprehensive view to complete their investment research and make well-informed decisions.


Mark Strizek was my very first guest on this series, so it is apt that he has been invited back to do the 'Coffee With Samso' 100th episode.


Mark Strizek brings clarity to the company's journey: A Simple Gold Mining Story


Mr. Strizek shares about the company's journey which I have been following since 2018. Now in 2021, the company's results are bearing fruit for their shareholders. Lots to celebrate today indeed. Today's story has a very simple nugget of wisdom.


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

Mark Strizek, Executive Director of Tietto Minerals Limited, Noel Ong, Samso, featured by Brilliant-Online


Interestingly enough, this simple gold mining story takes place in the Côte d’Ivoire, West Africa. We are talking about the Abujar Gold Project.


Caigen Wang is the founder of Tietto and he went about finding and now developing the Abujar Gold Project. Caigen saw the number of people working in the mine and immediately realised the potential of developing this mine.


Caigen Wang, founder of Tietto Minerals
Caigen Wang, founder of Tietto Minerals

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

Cote d'Ivoire is a place that is rich in minerals and is blessed with greenstones (See Figure below under Abujar Project) similar to what is seen in the Kalgoorlie Goldfields. So far, there have been numerous multi million ounces of gold discovered in the country and the pro-economic government is a bonus.


Tietto is serious with ESG


ESG (Environment, Social, Governance) is one of Tietto's challenges to make the mine a reality. Mr. Strizek gives an update on their current situation. So far there have been 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 Ivorian company, Envitech, has been engaged to conduct the baseline fieldwork to compile an environmental and social impact assessment.


Watch the interview: Coffee with Samso Episode 100



Chapters


00:00 Introduction

01:15 Mr. Strizek 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 consists 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.


Abujar Gold Project, Côte d’Ivoire, West Africa
Abujar Gold Project, Côte d’Ivoire, West Africa (Source: Tietto Minerals)

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.


Contact Tietto Minerals Limited


a/ Unit 7, 162 Colin Street West Perth WA 6005

 

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Disclaimer


This article is sponsored content.


ASX companies engage Samso and Brilliant-Online to share their commentary on the progress of their companies and projects. The author, owners of Samso and Brilliant-Online and associated entities may or may not hold shares of these companies.


The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. - Samso


About the Author


Noel Ong, CEO of Samso tells compelling stories by engaging business leaders to reveal insights beneficial to the investment community.


Contact Samso


Samso helps executives tell their stories to pique investor interest.

t/ +61 490 092 814

 

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