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FINALIST: EXPLORER

Tietto locked and loaded

by Michael Washbourne Caigen Wang to purchase and operate its own drilling fleet had
proven to be a masterstroke.
“Once you start turning that mill on at the rate we’re going to be
producing gold, we start depleting our resource and reserve base
very quickly, so we want to get on the front foot and continue to add to
the amount of ounces we have in our inventories,” Strizek told GMJ.
“The drill rigs give us an incredible opportunity in what is normally a
quiet spell for developers. Normally you’re so locked down with cash
flows that you’re unable to do it, but because this is so cost-effective
for us, we can continue exploring as we develop the mine. So, expect
the drill results to keep flowing as the drill rigs keep turning.”
Wang was also instrumental in brokering negotiations for China’s third
largest gold producer, Zhaojin Mining, to make a material investment
in Tietto via the recent placement which was heavily oversubscribed
and ultimately upsized from its initial $70 million target.
A few days prior to the equity raising, Tietto mandated Taurus Mining
Finance Fund No.2 L.P. to provide $US130-140 million of debt
funding via a five-year loan that allows for early repayment at any
Tietto plans to continue
ietto Minerals Ltd executive time without penalty and requires no mandatory hedging.
drilling aggressively while
T director Mark Strizek has
constructing the 4 mtpa Taurus previously provided debt financing for West African
described the company’s upcoming
open-pit mining operation Resources Ltd (WAF) to construct the Sanbrado mine over the
transition from explorer to developer at Abujar, Cote d’Ivoire border in Burkina Faso. That loan is expected to be repaid in its
as “the end of the beginning”, entirety later this year.
but there are no plans to park up the drill rigs which have laid the
Strizek said chief operations officer Matt Wilcox, who oversaw the
foundations for the start of construction at its flagship Abujar project
Sanbrado build, was “jumping out of his skin” to bring Abujar to life.
in Cote d’Ivoire.
“This money allows Matt and his team to do what they came on
Abujar is now officially on track to become West Africa’s next major
board to do, which is build another gold mine hopefully ahead of
gold mine after Tietto finalised an $85 million equity placement and
schedule and under budget,” he said.
up to $US140 million of debt funding to underpin the development
“Matt and his team have got a fantastic record of building and getting
of a 4 mtpa open-pit operation expected to produce an average
these things done and that was one of the keys for Taurus. They could
200,000 ozpa over the first six years.
see we have the runs on the board and obviously they’ve just had
An aggressive development timeline could see first gold delivered
a really great experience with WAF as well, that certainly helped us.
from Abujar in Q4 2022.
“We have set ourselves a very ambitious target of first gold in Q4,
November’s project financing announcement came after a bumper
but I think that there’s a real mark of confidence in the project with
12 months for the company, with more than 100,000m drilled into the
investors because people can see we have what it takes and we
project and both a PFS and DFS completed. Tietto also increased
can deliver.”
Abujar’s resources to 3.35 moz and reserves to 1.45 moz during that
A geologist at heart, Strizek continues to marvel at the potential
period.
upside on offer at Abujar. Recent infill drilling at AG Core delivered
Tietto has already kicked off an $US8.65 million early works
multiple high-grade hits, including 8m @ 12.43 g/t gold from 187m
programme which includes FEED, site and camp construction and
(including 2m @ 48.37 g/t) and 12m @ 6.1 g/t gold from 208m
purchase of an unused SAG mill. Perth-based Primero Group Ltd
(including 10m @ 7.15 g/t).
is undertaking the engineering and design studies for the proposed
The average cost of Tietto’s in-house drilling is estimated at just
process plant.
$US35/m.
Despite the focus now turning to development, the company’s fleet
“We’ve really only just scratched the surface, and I think that’s the key
of six diamond drill rigs will continue to turn. Upon completion of the
with a project like this, is you’ve got to have that pipeline of prospects,”
DFS in October, Tietto flagged several improvements via 30,000m
he said.
of infill drilling and 5,000m of deeper drilling to investigate Abujar’s
underground potential. “We’ve got a lot of real estate, a lot of acreage, and with these sort of
drill costs, it changes the game.”
Strizek said the decision by Tietto founder and managing director
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