Today’s Market View – Tietto Minerals, Oriole Resources, Keras Resources and more…

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SP Angel . Morning View . Thursday 24 09 20

Risk sentiment pulls back on US Fed warnings over outlook

Atalaya Mining (LON:ATYM) – Solar power plan for Proyecto Riotinto

Castillo Copper (LON:CCZ) – Drilling planned for the Big One in Queensland

Condor Gold* (LON:CNR) BUY – Valuation 102.5p – Director tops up his shareholding

Keras Resources* (LON:KRS) – Tesla’s new batteries set to benefit manganese producers

Oriole Resources (LON:ORR) – Drilling contract awarded in Cameroon

Tietto Minerals (ASX:TIE) – Updated resource estimate for Abujar expected in mid-October

Gold likely to bounce to second peak on Second-wave stimulus spending

The metal is depressed by a stronger US dollar and Nasdaq Tech-stock selling with the dollar index hitting a two-month peak.

The US dollar is pushing higher due to its safe haven appeal amid risk-off sentiment in markets, which is weighing heavily on dollar-denominated gold.

Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF, fell 0.87% to 1,267t on Wednesday.

There is potential for a second spike higher for gold if policymakers raise stimulus levels and print more cash

Long-term uncertainties indicate investors may look to ‘buy the dip’, adding bullion to their portfolio when prices are low.

Drug makers are cautiously progressing Vaccine trials with good and bad news expected in the coming weeks and months

Vaccine deployment will still take much time and will likely begin with the more vulnerable in society

LME base metals decline on second wave concerns

Base metals fell across the board on Thursday morning, amid a broad sell-off across markets on concerns that the Covid-19 pandemic is spreading aggressively again.

Copper led the decline this morning with a 1% fall to $6,532/t, with the rest of the complex down 0.7% after an average fall of 1.8% on Wednesday (Fastmarkets MB).

Musk’s Battery Day comments result in sharp drop in lithium equities (see below for further comment on Tesla’s Battery Day)

Elon Musk’s comments regarding improvements to battery technology at the expense of lithium content saw share prices in major miners fall on Wednesday.

Whilst investors anticipated an increase in lithium usage as cheaper batteries cause an uptick in EV usage, new technologies were announced which suggested a reduction in lithium usage.

Further denting lithium equities was the announcement that Tesla will look to start mining the battery metal in Nevada, aiming to create its own integrated supply chain.

The move into mining is part of a broader policy shift to minimise the steps from mining to production, plus reducing the volume of materials transported to create the final product.

Albemarle shares fell over -13%, Lithium Americas fell -18% whilst SQM fell -11% on Wednesday (Bloomberg).

While Van Man – jet fuelled (FT)

UK refiners are cutting diesel with surplus jet fuel due to collapsed demand for flights

Explains how Amazon are so fast that their deliveries

Dow Jones Industrials -1.92% at 26,763

Nikkei 225 -1.11% at 23,088

HK Hang Seng -1.90% at 23,291

Shanghai Composite -1.72% at 3,223


US – Fed officials argued the recovery could falter if policymakers do not pass a fresh stimulus package triggering a sell off in risky assets.

Chairman Jerome Powell said that more support was likely to be necessary.

Chicago Fed President Charles Evans expressed concerns that the stimulus won’t be forthcoming while Boston Fed President Eric Rosengren suggested it will take another wave of infections to lead to an action, which is unlikely before year end, Bloomberg reported.

S&P 5 closed 2.4% lower yesterday marking the biggest drop since September 8 and the fifth drop in six days.

Virus relief package negotiations have been at loggerheads with no formal negotiations since early August.

US business activity favoured better and posted a more balanced performance between manufacturing and services sectors compared to the Eurozone based on September Markit PMI data.

Companies signalled a further solid increase in business activity in September with new orders posting a second consecutive increase and the pace accelerating to the strongest since Feb/19, largely driven by the services sector.

Outlook remained strong although the overall confidence level dropped to a four-month low amid elections related uncertainty and the ongoing pandemic.

“US businesses reported a solid end to the third quarter, with demand growing at a steepening rate to fuel a further recovery of output and employment,” Markit commented on the data.

Markit Manufacturing PMI: 53.5 v 53.1 in August and 53.5 est.

Markit Services PMI: 54.6 v 55.0 in August and 54.7 est.

Markit Composite PMI: 54.4 v 54.6 in August.

China – China Beige Book shows strength of economic recovery varying between regions as Yangtze flooding hampers recovery

Not all regions in China are recovering as well as they might according to China’s Beige Book on the economy.

Official GDP recovered to 3.2% in Q2 with recovery expected to rise to over 5% in Q3.

Coastal regions are seen recovering faster than inland.

The services sector, a major employer, is struggling to recover a Coronavirus concerns hold back spending .

EU – Growing protectionism a key feature of next week’s EU summit

A portion of the upcoming European Summit will focus on industrial policy and a draft of the joint statements suggests that the key themes will be “autonomy” and “sovereignty”.

In terms of trade policy, leaders will agree to repatriate production of some goods, including medical equipment, microprocessors and secure telecommunication networks, and keep control of important technologies such as micro-electronics. They will also encourage legislative measures to decrease “strategic dependencies” in “sensitive industrial ecosystems” like health.

EU state aid rules will be altered to ease restrictions on public subsidies.

EU will assume disciplinary measures which will restrict access to the European market for subsidised competitors outside of the area.

Looking forward, more legislation is expected.

Germany – Germany business sentiment improved for the fifth consecutive month in September despite rising number of infections.

IFO Business Climate: 93.4 v 92.6 in August and 93.8 est.

UK – ‘Winter Economy Plan’.

The Chancellor is expected to announce more job protection plans today including potentially a new wage subsidy programme

Rishi Sunak is likely to announce a new subsidy to encourage part-time returns to work instead of full furlough pay, as well as an extension of a sales tax cut for the hospitality and tourism industry until the end of March, the Times newspaper said.

Italy – Faced with recession and increased fiscal stimulus, Italy is expected to see its debt burden reach ~160% of GDP by the end of 2020, up from 135% recorded in 2019.

The economy is expected to contract 9% this year before expanding 7-7.5% in 2021 in an optimistic scenario if the spread of the pandemic is limited and investments are accelerated.

Switzerland – The central bank left its policy rate and the deposit rate unchanged at -0.75% while reiterating its pledge to use FX interventions amid “highly valued” Swiss franc, according to Bloomberg.

The economy is expected to contract 5% this year.

Turkey – The central bank is expected to leave rates unchanged at 8.25% today despite accelerating inflation (11.8% in August) amid a more than 20% depreciation in lira this year

The case of higher rates is somewhat weak given the opposition of President Erdogan who is considered to exert control over the central bank decisions.

Ryanair may put staff on unpaid leave over the winter unless the furlough scheme is not extended beyond the end of October with the airline expected to operate at 30-40% of its normal capacity during the period.

The comments come after a number of airlines revised down their forecasts for the recovery in the passenger traffic over the winter, as Europe moves to tighten coronavirus restrictions.

Wise words from the Dalai Lama today

Happiness can just refer to the pleasure we find on a sensory level, but real happiness is related to peace of mind.

If we have a calm mind, fear and suspicion are reduced. Fear is a major source of unhappiness.


US$1.1656/eur vs 1.1694/eur yesterday. Yen 105.26/$ vs 105.01/$. SAr 17.106/$ vs 16.886/$. $1.273/gbp vs $1.270/gbp. 0.705/aud vs 0.713/aud. CNY 6.822/$ vs 6.792/$.

Commodity News

Precious metals:

Gold US$1,854/oz vs US$1,883/oz yesterday

Gold ETFs 110.6moz vs US$110.9moz yesterday

Platinum US$839/oz vs US$860/oz yesterday

Palladium US$2,211/oz vs US$2,193/oz yesterday

Silver US$22.11/oz vs US$23.50/oz yesterday

Base metals:

Copper US$ 6,559/t vs US$6,689/t yesterday – Copper prices continue to pull back due to US dollar strength.

Simplistically, investors saw the US dollar as having corrected sufficiently to warrant buying again

Many other economies are struggling with slower stimulus spending and impact as well as Second Wave ‘COVID-19’ fears and regional lockdowns.

V-shaped economic recovery is looking rather more U or W-shaped as policy makers struggle to restore confidence and unemployment rises.

Coronavirus infections are rising as Western nations struggle to reopen economies as they head into colder Autumn and Winter months.

Further stimulus looks likely in this environment to avert the collapse of many services businesses

Another 950t of copper was withdrawn from LME warehouses yesterday.

The on-warrant withdrawals bring the total copper stock available to the market to 76,325t representing just over 1 day of global refined supply.

Off-warrant, CME, Shanghai and other stock holdings

Aluminium US$ 1,737/t vs US$1,770/t yesterday

Nickel US$ 14,325/t vs US$14,490/t yesterday

Zinc US$ 2,389/t vs US$2,432/t yesterday

Lead US$ 1,876/t vs US$1,868/t yesterday

Tin US$ 17,540/t vs US$18,810/t yesterday


Oil US$41.5/bbl vs US$41.5/bbl yesterday

Natural Gas US$2.259/mmbtu vs US$1.824/mmbtu yesterday


Iron ore 62% Fe spot (cfr Tianjin) US$111.8/t vs US$114.0/t

Chinese steel rebar 25mm US$544.6/t vs US$547.4/t – Shanghai steel prices jump 3% on lower futures prices

Stainless steel futures on the SHFE rose nearly 3% on Thursday, fuelled by speculative trading as prices fell into backwardation.

Backwardation is when the current price of an underlying asset is higher than prices trading in the futures market.

Futures prices dropped faster than spot prices as prices remain elevated on high steelmaking costs, whilst consumption has dropped.

The most-traded November contract of stainless steel gained as much as 2.9% to 14,345 yuan ($2,104.36)/t in early trade, closing up 2.3% at 14,260 yuan/t (Refinitiv).

Thermal coal (1st year forward cif ARA) US$59.5/t vs US$58.4/t – IFC’s new climate rules to reduce lenders from backing coal

New climate change conditions have been announced by the world bank’s private sector for its investments in commercial banks. They urge lenders to ease support for coal projects in Asia and Africa.

The International Finance Corporation hopes that these conditions will motivate other investors to leave the coal sector.

Under these new conditions, the IFC will stop making equity investments in financial organisations that fail to wind down support for coal.

The IFC will also ensure that any banks involved will cut their exposure to coal to zero by 2030.

Coking coal futures Dalian Exchange US$150.5/t vs US$151.0/t


Cobalt LME 3m US$34,200/t vs US$34,200/t

NdPr Rare Earth Oxide (China) US$48,449/t vs US$48,955/t – Chinese state-run rare earth producer accused of breaking pollution laws

A subsidiary of Aluminium Corp of China (Chinalco) in Guangxi has repeatedly violated pollution rules and contaminated nearby land, according to the environment ministry.

An environmental inspection team found that the company has “seriously polluted the surrounding environment”, according to a statement from the Ministry of Ecology and Environment.

The company has not yet been issued with a fine, although the company has been told to investigate the problem and make corrections (Reuters).

Lithium carbonate 99% (China) US$5,028/t vs US$5,050/t

Ferro Vanadium 80% FOB (China) US$30.1/kg vs US$30.1/kg

Antimony Trioxide 99.5% EU (China) US$5.2/kg vs US$5.2/kg

Tungsten APT European US$220-225/mtu vs US$212-220/mtu

Graphite flake 94% C, -100 mesh, fob China US$430/t vs US$430/t

Graphite spherical 99.95% C, 15 microns, fob China US$2,275/t vs US$2,275/t

Battery News

Tesla Battery Day – The Good, the indifferent and the bad of ‘Battery Day’

Top quality raw material purity and supply s are essential for Tesla to bring battery production in-house.

Cutting battery costs requires greater efficiency in production and in the raw material supply chain.

Simplifying processes to reduce volumes and produce high-quality lithium and nickel chemicals is key as is the removal of cobalt to cut costs.

Tesla is also investing in a lithium clay deposit in Nevada to feed the Gigafactory and we suspect will also invest in other mines for nickel and possibly cobalt production.

The Good: While the $100kWh threshold was not mentioned the Company did reveal a number of innovations which they say will cut the cost of their batteries by 50%. Given Tesla’s batteries cost around $144/kWh today one could make the reasonable assumption that this will result in a ~$70-80 battery not including pack costs.

To get there Tesla announced a number of innovations including a new battery with a form factor of 4680. The battery is tab-less, instead using a shingled spiral design which helps boost the power to weight ratio and is easier to manufacture.

The new form factor enables 5x the energy, 6x the power and 16% extra range compared to the existing 2170 batteries

We note Tesla are still using cylindrical cells which work better from a heat management perspective helping to preserve battery performance over time. Tesla’s larger battery packs compare well versus other manufacturers from a time and cycle perspective giving less than 10% degradation after 160,000 miles. Tesla now covers all battery capacity degradation in all its vehicles with a limit of 70% capacity for up to 8 years or 100,000 to 150,000 miles depending on the model.

This brings us to their next innovation and a great focus for the company, their manufacturing. Musk suggested Tesla hopes to be the best manufacturer in the world, he thinks vertical integration and efficiencies will be the differentiator between the winners and losers.

The Company is going to make cathode production facilities leaner, the new Raw metallurgical silicon batteries will make use of dry electrode coating which will remove the need for extensive drying facilities at factories.

More efficient vehicle assembly: Tesla has built the largest casting machine in the world to cast vehicles in 2 parts connected by a middle section where the battery pack will be both an energy device and provide structure. Referencing innovations in aircraft fuel tanks Musk revealed the battery cells would be stacked more efficiently improving mass efficiency and safety, presumably with better use of air flow and heat transfer.

The indifferent: As hinted to the night before in a tweet from Elon Musk no innovation of new technology revealed at battery day is ready for immediate deployment. The new 4680 form factor battery will take 12 months to scale to production while the $25,000 car will take 3 years to deliver.

For Panasonic, CATL and LG Chem, the future got a little muddier with Tesla moving to enhance its battery supply by making batteries in-house. Tesla hopes to have a production capacity of 100GWh by 2022 which will be supplemental to batteries it is supplied by Panasonic, CATL and LG Chem.

Musk made mention of the battery bottleneck he expects to take hold in 2022. Tesla’s internal manufacturing may alleviate this to some extent but there remains a need to solve supply bottlenecks and to have enough factories, or efficient enough factories to produce the 10TWh of battery production required to electrify the global vehicle fleet.

The dry powder electrode is not ready for production, there remain teething problems, although the Company has reached the pilot production stage. There have been 4 revisions of the machine since the acquisition of Maxwell Technologies.

The bad: Tesla’s shares lost $50bn in value as investors weigh innovations against time horizons and expectations. The hopes were for a million mile battery and a breakthrough in costs, with specific mention of the $100/kWh threshold which will make EVs competitive on price with ICE vehicles.

No sign of a million mile battery. There was no mention of the previously hinted to million mile battery.

Tesla’s new batteries set to benefit manganese producers

Manganese producers could receive a boost as Tesla announced its new battery will contain up to 33% manganese.

Tesla’s deployment of manganese in its batteries is expected to drive an increase in high-purity manganese demand.

Euro Manganese has already seen some positive kick-back from the news, its share price rose more than 50%.

Manganese is already a widely used metal in electric and hybrid vehicles. It is used in NiMH batteries utilized in hybrid vehicles and is a component of lithium-ion batteries.

California looks to ban the sale of gasoline vehicles by 2035

Governor Gavin Newsom signed an executive order on Wednesday that will ban the sale of gasoline passenger vehicles and trucks by 2035 in the state of California.

It is the first such move by a US state but is in line with European target dates. The UK recently brought forward their cut off date to 2035 whilst Ireland, Germany and the Netherlands plan to ban ICE vehicle sales by 2030. Norway is leading the way with a target of 2025.

The California Air Resources Board (CARB) will turn the 2035 target into a legally binding requirement through regulations. The board is also looking to mandate that all operations of medium and heavy duty vehicles be zero-emissions by 2045.

Today electric vehicle sales account for 10% of total vehicle sales in the state, the best in the US. The new rules are likely to have broader consequences as California is a standard bearer for clean air regulations. 14 other states have adopted its zero-emissions vehicle standards.

There is opposition to the ruling and California’s policy of mandating outcomes. The Trump administration has moved to revoke California’s waiver which provides the state with unique rights to set its own emissions targets. A decision is expected in the courts soon. There is also likely to be some heavy opposition from the sizable automotive and petrochemical industries in the state.

Company News

Atalaya Mining (LON:ATYM) 170p, Mkt Cap GBP232.1m – Solar power plan for Proyecto Riotinto

Atalaya Mining reports plans to seek permits for the construction of a 50MW solar power plant at its Proyecto Riotinto mining operation in Andalucia.

The power generated is to be used within the operation and the “decision to pursue the Solar Project is in line with Atalaya’s ongoing commitment to environmental sustainability and to continue to have a positive impact on the people, environment and society surrounding the mine”.

Atalaya Mining does not indicate the expected duration of the permitting process but explains that third party technical studies conducted recently “have indicated that, in addition to making a significant contribution to reduce carbon emissions, the Solar Project is economically viable and could potentially contribute to reducing Proyecto Riotinto’s operating costs”.

The company indicates that “During the permitting period, the Company will evaluate the various financing options that are being proposed by industry players in Spain”.

CEO, Alberto Lavandeira said that the planned solar power “will be one of the largest projects of renewable self-consumption in the industry … [but that it] … is only a first step in achieving our long-term sustainability goals, but one that will have a positive and near term impact on Proyecto Riotinto.”

Conclusion: Atalaya has an established track-record of the successful delivery of engineering projects having completed successive expansions of mine capacity at Proyecto Riotinto to its present 15mtpa capacity. Subject to successful permitting, a large solar power plant which delivers reduced costs at the mine and wider environmental benefits is now emerging as potentially the company’s next major project.

Castillo Copper (LON:CCZ) 2.6p, Mkt Cap GBP24.7m – Drilling planned for the Big One in Queensland

Castillo Copper reports that following encouraging assay results from rock-chip sampling of the Big One deposit located in its Mt Oxide project area approximately 150km north of Mt Isa in Queensland, it plans to start drilling in October.

The deposit is reported to comprise “shallow high-grade supergene ore up to 28.4% Cu, and the Arya Prospect, which was identified through an airborne electromagnetic survey conducted by Geoscience Australia in March 2019”.

The company says that the rock-chip results of 24 samples average 6.7% copper with 21 of the samples exceeding 1% copper. The best reported results include grades of 33.2%, 32.1% and 26.6%.

Castillo Copper also says that the results of its sampling “are consistent with previous high-grade drilling results which hit economic intercepts up to 28.4% Cu along a 600m strike event including:

B07: 3m @ 12.25% Cu from 42m incl: 2m @ 17.87% Cu from 43m; and 1m @ 28.4% Cu from 44m;

B05: 8m @ 2.33% Cu from 44m incl: 6m @ 3.00% Cu from 45m; and 5m @ 3.28% Cu from 45m;

B06: 4m @ 2.20% Cu from 44m incl: 2m @ 3.19% Cu from 46m and 1m @ 3.63% Cu from 47m; and

B25: 6m @ 1.55% Cu from 66m incl: 5m @ 1.79% Cu from 66m and 2m @ 2.08% Cu from 66m”

Conclusion: Encouraging early stage rock-chip sampling at the Big One appear to confirm previous drilling and Castillo Copper is moving to start its own drilling during October. We await news on the progress of exploration once drilling gets underway.

Condor Gold* (LON:CNR) 46.5p, Mkt Cap GBP54.7m – Director tops up his shareholding

Click here for Initiation note pdf

Condor Gold reports that non-executive director, Jim Mellon, has made further additions to his direct and indirect holding in the company with the purchase of an additional 100,000 shares at a price of 43p/share.

The purchase brings Mr. Mellon’s overall holding to approximately 18.7m shares representing around 16% of the company.

Conclusion: Today’s report of share purchases by Mr. Mellon follows an earlier purchase of 75,000 shares announced in August. Although it is comparatively small in relation to his overall holding it is encouraging to see Mr. Mellon’s continuing confidence in the future of Condor Gold as it moves ahead with the La India gold project in Nicaragua which is expected to produce an average of 120,000ozpa for the initial seven years of the mine’s life.

*SP Angel act as sole broker to Condor Gold

Keras Resources* (LON:KRS) 0.13p, Mkt cap GBP6m – Tesla’s new batteries set to benefit manganese producers

(Keras also hold an 85% interest in Societe General des Mines which holds the Nayega manganese project license in Togo. Keras now holds 30% of Falcon with an option to raise its stake. Keras also holds a 51% stake in the Diamond Creek phosphate mine which is operating in Utah, USA)

Keras shareholders could be forgiven for a little joy this week on the back of news from Elon Musk’s Tesla Battery Day

Must announced that Tesla’s new battery will contain up to 33% manganese representing a potentially significant increase in high-purity manganese demand.

Euro Manganese Inc. shares rose on the news

Manganese is already a widely used metal in electric and hybrid vehicles. It is used in NiMH batteries utilized in hybrid vehicles and is a component of lithium-ion batteries.

Keras management are currently in Togo meeting with government officials in relation to the issuance of a full-scale mining license for the Nayega Manganese mine.

The project is ready to start mining following a successful trial mining and shipment run last year.

The team are also restarting exploration at the Ogaro prospect at Nayega.

Nayega current production capacity 6,500tpm

Planned increase in capacity to 25,000tpm (300,000tpa)

JORC resource: 13.5Mt @ 11.1% Mn and an Ore Reserve of 8.44Mt @ 14.0% Mn

Keras is also mining organic phosphate mine in Utah in the US. The mine restarted shipments in August and is delivering into their first order of 770t which represents ~15% of projected sales for the year ahead.

Operating costs are estimated at $229/ton in at 5,000tpa in the first year falling to US$92/ton at peak production in Year 5

Margins: An independent study estimates an average sales price of $362.8/ton for organic fertilizers in North America indicating potential for a significant margin on the $229/ton operating cost.

Conclusion: Tesla’s statement should drive new interest in high-purity manganese as a battery metal and bring new investment into the space.

*SP Angel act as nomad and broker to Keras Resources

Oriole Resources (LON:ORR) – 0.38p, Mkt cap GBP3.5m – Drilling contract awarded in Cameroon

Oriole Resources confirms that it has awarded a 3,000m diamond-drilling contract at its Bibemi project in Cameroon. Drilling planned as part of an initial programme earlier in the year was delayed due to the imposition of measures to help contain Covid19.

The planned programme includes 17 holes (1,940m) within the high grade Bakassi prospect with “Further targeting planned at the northern end of Bakassi, which remains open along strike”.

The “drilling will particularly focus on the stacked veins recently identified at the northern end of the 5.3 kilometres ‘Zone 1’ target, where sampling has returned up to 35.86 grammes per tonne (‘g/t’) gold (‘Au’) from rock-chip sampling and a best trenching intersection of 9m at 3.14 g/t Au”.

The company explains that mobilisation of the equipment to site is expected to take six-eight weeks and that “Customs clearance of the drilling equipment is subject to renewal of the existing licence, a process that is well-advanced and is expected to complete within the coming weeks”.

Commenting on the start of the delayed maiden drilling programme, CEO, Tim Livesey, said “We are confident that Bibemi will continue to build on the good results we’ve already yielded from the rock chip sampling and trenching programmes, and it will be great to get some vertical extension to the significant trends the team have already identified on surface”.

He also clarified that “following the completion of the drill programme, we will have achieved an investment milestone at Bibemi having satisfied the earn-in conditions to vest at 90% of the Project”.

Conclusion: The delayed maiden drilling programme at Bibemi is expected to start within the next six-eight weeks. We await news of progress following the arrival of the equipment on-site.

Tietto Minerals (ASX:TIE) A$0.50, Mkt Cap A$229m – Updated resource estimate for Abujar expected in mid-October

In a release to the ASX, Tietto Minerals reports further intersections from its drilling of the Abujar-Gludehi (AG) gold deposit in Cote d’Ivoire and confirms that its planned update of the current mineral resources estimate of 2.2moz remains on track for release in mid-October following completion of a 61,000m drilling programme.

The company also confirms that the pre-feasibility study (PFS) for the Abujar project remains on course for Q1 2021 completion.

Among the results for the AG deposit highlighted in today’s announcement are:

An intersection of 21m at an average grade of 7.34g/t gold from a depth of 173m in hole ZDD333 which includes a higher grade section of 4m at an average grade of 25.08g/t gold and a deeper intersection of 10m at an average grade of 1.71g/t gold from a depth of 208m; and

An intersection of 6m at an average grade of 6.26g/t gold from a depth of 38m in hole ZDD311; and

An intersection of 7m at an average grade of 4.05g/t gold from a depth of 60m in hole ZDD317; and

An intersection of 14m at an average grade of 1.68g/t gold from a depth of 60m in hole ZDD321, including 6m at an average of 2.65g/t gold; and

A single metre intersection averaging 21.79g/t gold at 298m depth in hole ZDD301; and

An intersection of 7m at an average grade of 2.69g/t gold from a depth of 241m in hole ZDD316; and

An intersection of 15m at an average grade of 1.22g/t gold from a depth of 66m in hole ZDD312; and

The company says that “High-grade gold mineralisation remains open along strike and at depth … [and that it plans] … to drill more holes along strike at AG, as well as further step-back drilling to test the depth limits of this large high-grade gold system.”

Drilling is also targeting shallow high grade gold mineralisation directly to the south of the AG deposit at the AG South deposit as well as shallow oxide mineralisation 7km to the south of AG in the APG deposit and towards the north of AG in an area of extensive artisanal working at the GGL deposit.

Conclusion: The results of Tietto Minerals’ extensive drilling at Abujar will be incorporated in an update of the current 2.2moz resource in a new estimate due in mid-October and subsequently in a PFS due during Q1 2021. We look forward to the updates for an insight into the extent of the mineralisation and the economic viability of the Abujar deposit.


John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy –[email protected] – 0203 470 0474

Joe Rowbottom – [email protected] – 0203 470 0486


Richard Parlons –[email protected] – 0203 470 0472

Abigail Wayne – [email protected] – 0203 470 0534

Rob Rees – [email protected] – 0203 470 0535

SP Angel

Prince Frederick House

35-39 Maddox Street London


*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

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