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Tietto keeps Abujar turning

by Michael Washbourne

s Tietto Minerals Ltd prepares to become West Africa’s
Anewest gold producer, founder and managing director
Caigen Wang has lauded those who stuck by him and the
company over the past 12 years.
Tietto was set to pour first gold from its Abujar project in Cote
d’Ivoire at the time of print, completing one of the most rapid
transitions from explorer to producer in recent years.
For Wang, it has been a remarkable journey since the
company’s inception in 2010 as an iron ore explorer in Liberia.
Tietto crossed over to Cote d’Ivoire four years later before
listing on the ASX in 2018 and hasn’t looked back since.
Speaking to GMJ from Abujar where he was readying for
Tietto founder Caigen Wang on site at Abujar in 2014
the production of the historic first gold bar, Wang said the
company would not have been able to take the project from
Wang has no doubt his company can adjust to the tag of
first exploration to constructed mine inside eight years if not for
established West African gold miner.
the support of all key stakeholders.
“We have great teams and team leaders whose experience
“I am feeling really very grateful to our shareholders for their
and track records of successfully building and operating large-
trust, support and patience over 12 years since Tietto was
scale gold mines in West Africa is second to none,” he said.
incorporated in 2010,” he said. “I am also very excited about
Having started with a zero resource base when Ivorian
the cash positive [position] of the company to be realised in the
weeks ahead.” authorities awarded the exploration licence to Tietto in 2014,
the company has now built up a 3.45 moz gold inventory at
According to the updated DFS released last year, Abujar
Abujar.
will produce 1.2 moz gold over the first six years, including
Central to Tietto’s exploration success over the past eight years
260,000oz at $US651/oz AISC in the first 12 months of
operation. Based on the $US1,407/oz gold price assumed in – and particularly the last four since becoming a publicly-listed
entity – was the decision to purchase its own diamond drilling
the study, the project is set to generate life-of-mine revenue
of $US2.38 billion, EBITDA of $1.08 billion, post-tax NPV of fleet. During its peak, the company often completed more than
10,000m of diamond drilling per month for less than 25% of a
$US465 million and IRR of 64%. Payback occurs just 1.3 years
after first production. standard commercial rate.
Construction of the open pit mine and 4.5 mtpa processing The drill bit continues to turn up great numbers at Abujar.
In the December quarter alone, Tietto reported a range of
plant at Abujar was funded entirely from cash after Tietto
replaced a pre-existing mandate for debt finance with intersections which would be the envy of most junior explorers,
including 19m @ 21.94 g/t from 270m (including 6m @ 46.62
institutional equity support.
g/t), 4m @ 24.73 g/t from 85m (including 0.5m @ 195.53 g/t)
Led by chief operations officer Matt Wilcox, the Abujar build
and 8m @ 11.38 g/t from 262m (including 0.5m @ 174.9 g/t).
was completed on time and on budget despite the global
inflationary pressures and supply chain disruptions which Wang insisted there were no plans to reduce the amount of
drilling on site despite the company’s focus shifting towards
have impacted many others in the sector.
production.
“The proficiency and efficiency along with the hard work of the
“Gold resource is fundamentally important for a gold mine,” he
mine construction team impressed me most,” Wang said.
said. “The current 3.45 moz gold resource defined at Abujar
“I also appreciate deeply the general support given to us by the
came from only 10% of the 70km gold mineralisation corridor
local communities and government agents at different levels.”
of the 1,114sq km Abujar exploration land package.
Tietto will now look to emulate the feats of fellow ASX-listed
“Keeping our own fleet of eight diamond drill rigs turning can
juniors West African Resources Ltd and Perseus Mining Ltd
realise strong gold resource growth, increase gold reserves
and transition from accomplished explorer to successful
and mine life, and deliver more economical benefits for all
producer.
stakeholders.”
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