Exciting Updates on the Koné Project
Oxide circuit creates potential for earlier start-up • Owner mining with equipment finance • Further higher grade discoveries
HIGHLIGHTS:
- On track for first gold pour in Q2-2027, with over $418 million of capital committed, representing roughly half of the total upfront cost.
- Construction on five CIL tanks has been completed, and work on mill foundations and water supply has progressed significantly, well ahead of the schedule.
- The ongoing construction of the oxide circuit is designed to enhance operational flexibility and expedite the timeline for production.
- Transitioning to an owner-mining model is anticipated to improve operational efficiencies.
- Plans to achieve a target of discovering over 1 million ounces of M&I resources at a 50% higher grade than the Koné deposit are underway, with resource updates expected to be announced in upcoming reports.
Montage Gold Corp. (“Montage” or the “Company”) (TSX: MAU, OTCQX: MAUTF) is making remarkable strides with its flagship Koné project. The construction phase is well on track and remains financially supported to maintain its schedule for the first gold pour targeted in 2027.
The team has logged over 4.5 million hours of construction work, culminating in the installation of multiple CIL tanks, foundations for milling operations, and extensive water supply infrastructure. These pivotal achievements have exceeded the initial timeline by nearly two months, creating a promising forecast for the delivery of the ball mill slated for early 2026. The capital investment to date exceeds $418.3 million, aligning with budget expectations.
To unlock further value, several initiatives are being pursued, focusing on enhancing production from day one while prioritizing strategic flexibility. These initiatives include:
- Adding higher-grade material from the start: Recent satellite discoveries boost the ability to exceed the target of 1 million ounces of M&I resources, showing promising results with 924oz at 1.32 g/t Au indicated, and ongoing drilling aims to further delineate these satellite deposits.
- Identifying high-grade zones: This involves comprehensive grade control drilling across the Koné and Gbongogo Main deposits, with results expected to be published soon.
CEO Martino De Ciccio expressed satisfaction with the progress, stating, "The rapid advancements at our Koné project are a testament to our planned timeline towards first gold production. We are delighted to see the project being recognized as one of the largest gold developments globally."
Peder Olsen, President and Chief Development Officer, noted the aim to efficiently accelerate the gold production timeline through innovative designs for the oxide circuit and owner-operated models. "These changes, along with significant milestones achieved months ahead of schedule, create tremendous value for our stakeholders as we continue to develop this operation," he explained.
Key Developments at the Koné Project
Meanwhile, the project is experiencing a remarkable ramp-up in workforce engagement. Currently, over 2,800 local employees and contractors are involved in construction, reflecting Montage's commitment to utilizing local resources and capabilities. Training partnerships with accredited institutions are underway to enhance skills in essential construction areas.
- Significant milestones include:
- The ongoing successful construction of CIL tanks, progressing two months ahead of schedule.
- Completion of major mill foundation work, having reached vital grounding stages for further operations.
- A team reporting exceeding productivity expectations with varied facilities already completed, ensuring timely operational readiness.
With the added construction of an oxide circuit, there is an opportunity to expedite the first gold pour even ahead of schedule, greatly enhancing financial outcomes. This investigative track is set to revolutionize profit margins through improved operational methods.
Forward Steps and Commitments
Montage Gold has also secured a significant $75 million equipment financing agreement to enhance their mining fleet setup. The facility will cover the preparation of necessary machinery, ensuring operations are not hindered by equipment delays.
As the developments unfold favorably, Montage Gold is positioned not only to meet but to exceed their exploration targets through solid planning and commitment to operational excellence. The upcoming announcements and resources updates promise to reveal even greater potential.
Conclusion and Future Outlook
As Montage solidifies its aim to create a pre-eminent gold producer in Africa, the Koné project stands as a flagbearer for modernization in mining operations. The focus remains steadfast on high grades, efficiency, and collaboration with local partners, propelling the venture toward notable success.
Frequently Asked Questions
What is the expected timeline for the first gold pour at the Koné project?
The first gold pour at the Koné project is anticipated in Q2-2027.
How much capital has been committed to the Koné project?
Over $418 million of capital has been committed to date.
What mining model is Montage Gold employing at Koné?
Montage Gold is utilizing an owner-operated mining model to enhance operational flexibility and efficiency.
What are the latest discoveries around the Koné project?
Recent discoveries include higher-grade satellite deposits, increasing the M&I resources target significantly.
How many local employees are currently engaged in the Koné project?
More than 2,800 local employees and contractors comprise the workforce on site.
