Tietto Minerals Ltd (ASX:TIE) has released an updated Life of Mine plan (LOMP) for the operating Abujar Gold Mine in Côte d’Ivoire, West Africa, that includes a nine-year mine life with average yearly production of 170,000 ounces.
The new LOMP also includes updated all-in sustaining costs (ASIC) for the 2023-2024 years of US$982 per ounce, and a post-tax net-present value (NPV5) of US$853 million at a US$1,900 per ounce gold price.
TIE says these new numbers represent some of the lowest processing costs within the West African gold mining industry, at just US$7.13 per tonne for the Life of Mine (LoM).
Ramping up gold production
“We are pleased to finalise this updated Life of Mine Plan for our Abujar Gold Mine as we continue to ramp up gold production,” Tietto Minerals managing director and CEO Matt Wilcox said.
“The updated LOMP shows AISC of US$982 per ounce over the life of the mine, and strong average nine-year production of 170,000 ounces per year at a life of mine head grade of 1.04 grams per tonne gold.
“Tietto achieved strong cash and bullion generation in the September quarter of A$18 million at a significantly lower average head-grade than reserve head-grade.
“This updated LOMP demonstrates just how strongly Abujar can perform over a longer timeframe, which will become apparent as our mining contractor begins to generate stockpiles enabling grade selection for mill feed.”
Abujar’s measured and indicated resources make up 75% of LOMP production, the remaining 25% being inferred resources.
The mine’s total proved and probable ore reserves are now estimated at 36.7 million tonnes at 1.15 g/t gold for 1.36 million ounces.
Abujar’s reserves decreased by 93,000 ounces since last reported, largely due to mining depletion last year and lower average grades in the most recent updated mineral resource estimate, as well as changes in mining dilution and recovery.
The company says the AG deposit ore reserves now total 31.2 million tonnes of are at 1.22 g/t gold (for 1.22 million ounces of gold) and 5.4 million tonnes at the lower 0.77 g/t gold concentration, for a further 120,000 ounces of gold.