The Tietto Minerals Ltd (ASX: TIE) share price is in the green today. At the time of writing, shares in the gold-focused company are trading at 31 cents each – up 6.9%. At one point during intraday trading, the Tietto share price surged by as much as 12.06% before partially retreating.
By comparison, the All Ordinaries Index (ASX: XAO) is currently trading 1.23% lower for the day.
Today's price rise comes after the company announced "multiple shallow high-grade gold" results from a recent drill at its Côte d'Ivoire gold mine.
Let's take a closer look at today's news.
Image source: Getty Images
What's boosting the Tietto share price?
In a statement to the ASX, Tietto Minerals says initial drill results at its Abujar Gold Project are promising.
Highlights from the results include a:
- 5-metre-wide ore with 109g per tonne of gold.
- 4-metre-wide ore with 26g per tonne of gold.
- 12-metre-wide ore with 3.3g per tonne of gold.
- 3-metre-wide ore with 8.4g per tonne of gold.
The company claims drilling results show a "contiguous zone of shallow ultra-high-grade" gold with a 200m strike.
Tietto says it had $52 million of cash on hand at the end of March and, as such, is "very well positioned" to fast-track and pursue further development of the Abujar Gold Project.
Management commentary
Tietto managing director Dr Caigen Wang said:
Our infill drilling program at AG South has again exceeded our expectations with multiple ultra-high grade gold hits, including a project best intercept of just over 1m at 0.53kg/t gold in the holes reported today.
These high impact holes have potential to add material shallow high‐grade ounces early in the mine schedule, which we expect to be positive for our open pit optimisation.
Once the infill program is completed, we intend to use our diamond drill rigs to test the multitude of exploration targets around our proposed mill at Abujar to drive future resource growth.
Gold commodity pricing
Presently, gold is trading on the commodities market at US$1,836 per troy ounce. It's up 3.24% this week and 5.98% this month, but down 3.18% since the beginning of the year.
The website Trading Economics expects the price of gold to continue to slide over the next 12 months. It tips the precious metal to be around US$1,700 in one year's time. Moving forward, the gold price could have a material effect on the Tietto share price, as most commodity prices do for mineral explorers.
Tietto share price snapshot
Over the past 12 months, the Tietto share price has fallen by 18.4%. The company hit its 12-month low of 28.5 cents only last week.
Tietto Minerals has a market capitalisation of $141.4 million.
