Emerging Cote d’Ivoire gold producer Tietto Minerals (ASX: TIE) reported that its current 28,000m infill drilling program at the 3.02 million ounce Abujar gold project is starting to generate new high-grade intercepts.
Latest assays reveal the company has unearthed 1m at 25.19 grams per tonne gold as part of a 6m intercept returning an average 6.27g/t gold.
Other intercepts reported include 2m at 8.82g/t (including 1m at 17.17g/t) and 7m assaying at 3.68g/t (and including 5m at 4.88g/t).
Assays have been received from seven holes of the 28 drilled.
The infill drilling program is designed to increase mineral resource “confidence categories” for the resource update due at the end of May.
PFS and maiden reserve expected next month
The project’s pre-feasibility study and maiden reserve statement are expected by the end of March.
Tietto says it is well-funded with $57 million cash in the bank, which will be used to finance studies and order items with long lead times to accelerate project development.
Additionally, the latest assays demonstrate that the gold mineralised system already defined has the potential for continual growth.
The present 3.02Moz global resource includes results from three deposits at Abujar — Abujar Gludehi; Abujar Pischon and Golikro; and South Gamina.
This is based on just a strike length of just 10% of the overall 70km-long Abujar gold corridor.
All-up, Tietto is undertaking a 70,000m drill program which began in December.
Tietto’s board had already approved spending of US$2.5 million (A$3.5 million) on early site works including upgrading access, camp improvement and buying long lead-time items.
Also in December, the company obtained the key permit for the Abujar project, the mining licence.
In October the company received environmental approvals for the project.
Africa’s next gold mine
The company has said it is poised to bring into production West Africa’s next gold mine.
The licence, issued by the Ministry of Mines, Petroleum and Energy, covers an area of 120.36km in central western Cote d’Ivoire.
Tietto’s total land holding is 1,114sq km.
There is now one remaining formality: the mining convention.
Tietto is working with the Ivorian Government to agree on terms and conditions of the convention.
The company’s top five shareholders include Hongkong Ausino Investment (9.87%), 1832 Asset Management, Inner Mongolia Geological and Exploration, and Hong Kong Gondwana Resources.