Montage Gold launches Kone mine construction in Cote d’Ivoire
Montage Gold Corp. [MAU-TSXV, MAUTF-OTCQX] said it has launched construction of its Kone project in Cote d’Ivoire, with first production scheduled for the second quarter of 2027.
To mark this significant milestone, a groundbreaking ceremony was held at Kone on Wednesday with over 2,000 present, including a strong presence from government officials and local communities, demonstrating their support for the project given its significant social and economic benefits.
Montage is a Canadian precious metal exploration and development company with a focus on the Cote d’Ivoire. Kone is the company’s flagship property and is located in northwest Cote d’Ivoire. The project is estimated to host a probable reserve of 174.3 million tonnes of grade 0.72 g/t or 4.01 million ounces.
Back in January 16, 2024, the company released the results of an updated feasibility study at Kone, outlining a 16-year gold project, producing 3.57 million ounces of gold at an all-in-sustaining cost of US$998 per ounce over the life of the mine. Average production is forecast at 223,000 ounces, reaching a peak of 378,000 ounces. Average annual production in the first eight years is expected to average more than 300,000 ounces of gold
First gold production is expected by the second quarter of 2027 as early works are well underway and major construction works are set to commence in the coming weeks, once further construction equipment arrives on site.
The project is fully funded with significant headroom with upfront capex expected to be US$835 million while Montage has in excess of US$900 million in liquidity sources.
The ongoing 90,000-metre drill program is expected to be completed in the coming weeks which is expected to result in the publication of a maiden mineral resource in the first quarter of 2025.
Meanwhile, exploration will remain a focus throughout the construction, to achieve prior to commencing production the published target of discovering more than 1.0 million ounces of measured and indicated resources at a grade of 50% higher than the Kone deposit.
The company has said 2024 exploration efforts at the Kone project are focused on both delineating higher grade satellite targets, with the goal of supplementing production from the commencement of operations and identifying new targets. Drill results have confirmed the potential to rapidly delineate maiden resources across several targets.
A second 60,000 metre drill program was launched in September 2024 with the goal of delineating resources by year-end at several targets, in addition to further drill testing of other targets.
The company said 52 exploration targets are now identified on the property, an increase from the 35 targets reported in July, 2024.
A first drill campaign, totalling 30,170 metres was completed at the end of July, 2024. Montage Gold shares rose 1.9% or $0.04 to $2.14 and trade in a 52-week range of $2.15 and 65 cents.