Combined measured and indicated resources are 1.15Moz at 1.4gpt for the AG Core deposit, part of a slightly increased total resource of 3.45Moz, a rise of 3%.

 

The company, which aims to produce its first metal before the end of the year, says it has cover for the first two years of production derisked within a 110m-deep pit shell.

 

Its recent drilling, which has largely been focused on infilling the AG Core deposit, also delivered a 213% boost to the small SG resource to 60,000oz at 1.2gpt.

 

The data has supported an increase to planned mill throughput by 12.5% to 4.5 million tonnes, thanks for space capacity in the SAG mill and the fresh ore in the shallow resource.

 

Tietto plans to update Abujar's life of mine plan later this quarter using its improved understanding of the resource and taking into account a gold price that is now 35% higher than the US$1407/oz used in the definitive feasibility study.

 

It anticipates a "material increase" to its existing mine plan, and delivering its maiden proved reserves in the coming weeks.

 

Diamond drilling continues with six rigs.

 

The company raised A$130 million in new equity at 50c in recent weeks for the US$200 development, and says the development remains on schedule. 

 

The company wants to deliver 260,000oz of gold in 2023, and 1.2Moz over the first six years of an initial 11-year mine life.

 

Tietto shares were at A50.5c today, valuing it at $411 million. The stock has traded at 28-65c over the past year. 

 

Petra Capital has a ‘buy' recommendation on Tietto with a target price of 85c.