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Abujar proves positive for Tietto

5th October 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Abujar gold project, in Côte d’Ivoire, could produce some 260 000 oz of gold in its first full year of operation, a definitive feasibility study (DFS) has found.

ASX-listed Tietto Minerals on Tuesday reported that the four-million-tonne-a-year operation was forecast to produce some 200 000 oz/y of gold in the first six years of an eleven-year mine life, at average all-in sustaining costs (AISC) of $804/oz.

Life-of-mine (LoM) gold production has been estimated at 155 000 oz/y, with some 1.7-million ounces of gold recovered at the project, while AISC over the LoM has been estimated at $832/oz.

The DFS estimated that the project would require a capital investment of $200-million, and could generate LoM revenues of $2.87-billion, and LoM pre-tax free cash flows of $1.28-billion and earnings before interest, taxes, depreciation and amortisation of $1.52-billion.

The project is estimated to have a pre-tax net present value of $959-million and an internal rate of return of 115%.

“Our recent update to the Abujar resource model has allowed Tietto to deliver a DFS that confirms Abujar’s potential to be one of the largest gold producing mines in Côte d’Ivoire,” said Tietto MD Dr Caigen Wang.

“The DFS metrics are clearly compelling, all prefeasibilty study measures have materially improved, from production to finance. Gold production in particular is positioning Abujar as a Tier 1 gold mine.

“We are confident the Abujar gold project will continue to enjoy growth in both resources and reserve and hence LoM production increases into next year through our continued large-scale drilling programme. We are focused on advancing the Abujar gold project towards becoming West Africa’s next gold mine.”

Tietto will examine potential for the Abujar mill throughput to increase above DFS levels once the plant is operational, as demonstrated by other West African gold projects.

Edited by Creamer Media Reporter

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