Montage Gold's Koné Project: Higher-Grade Satellites and Rapid Construction Progress

In the dynamic world of gold mining, Montage Gold Corp. is making significant strides with its Koné project in Côte d'Ivoire. The company's recent announcements highlight not only the delineation of higher-grade satellite deposits but also the rapid advancement of construction activities. This dual focus positions Montage Gold to achieve its goal of becoming a premier African gold producer, with a first gold pour scheduled for Q2-2027.

Delineation of Higher-Grade Satellite Deposits

The 2024 exploration program at the Koné project was a resounding success, with over 81,000 meters drilled. This extensive drilling effort focused on identifying higher-grade satellite targets, with the goal of supplementing production from the commencement of operations. The results provide significant confidence in achieving the previously published short-term objective of discovering over 1Moz of Measured and Indicated (M&I) resources for satellites at a grade 50% higher than the Koné deposit.

Mineralization was confirmed at all 18 targets drilled in 2024 out of the 52 exploration targets identified. This success led to the delineation of starter maiden resources for 7 new higher-grade satellites, with grades ranging between 0.9 and 1.6 g/t Au, or between approximately 60% to 180% higher than the Koné deposit. These higher-grade deposits are crucial for enhancing the production profile and overall financial performance of the project.

The efforts on the satellite deposits have added 160koz at 1.16 g/t Au and 270koz at 1.0 g/t Au of Indicated and Inferred Resources, respectively. These deposits remain open, as the focus was to delineate only a small portion of the orebodies to assess the grade profiles in order to prioritize 2025 drill efforts. Additionally, 6 other targets were progressed to the pre-resource definition stage, which are currently being pursued given the high-grade intercepts received.

Impact on Production Profile and Financial Performance

The delineation of higher-grade satellite deposits significantly impacts Montage Gold's production profile and financial performance. In the short term, these deposits enhance early-stage production grades and output. The higher grades reduce processing costs per ounce and improve the average head grade in the first three years of production. This directly boosts near-term cash flows and reduces payback periods.

In the long term, the inclusion of these higher-grade satellites extends the mine life and increases total gold production. The Updated Feasibility Study (UFS) demonstrates a 16-year mine life and 3.57 Moz total production, up from prior estimates. The higher-grade satellites provide a buffer against potential declines in the Koné deposit's grade or recoveries, ensuring sustained production and profitability.

Rapid Construction Progress

While the delineation of higher-grade satellite deposits is a significant achievement, Montage Gold is also making rapid progress in construction activities. The project remains on track for first gold pour in Q2-2027, with key construction highlights including the commencement of process plant concrete works, including the ahead-of-schedule pouring of Carbon-in-Leach (CIL) tank foundations.

The on-site workforce has grown from 350 to 1,700 employees and contractors, with over 90% being Ivorian nationals. This rapid scaling of the workforce has been managed effectively, with a strong safety record of 730,000 man-hours worked without a lost-time injury. The project remains on budget, with approximately 25% of the US$835 million capital spend committed thus far, and prices in line with expectations.

Key Risks and Mitigation Strategies

Despite the rapid progress, there are several risks and challenges associated with the construction of the Koné project. These include supply chain and equipment delays, cost overruns, labor and safety risks, weather-related delays, technical execution risks, resource adequacy and exploration risks, regulatory and community risks, and project management complexity.

Montage Gold is mitigating these risks through proactive planning, experienced leadership, and rigorous execution. The company has secured pricing and ordered long-lead items early, maintained financial flexibility, prioritized safety, and leveraged exploration success. The project remains on track for the Q2-2027 first gold pour, with no material risks derailing the timeline as of April 2025.

Conclusion

Montage Gold's Koné project is a testament to the company's strategic vision and execution capabilities. The delineation of higher-grade satellite deposits and rapid construction progress position Montage Gold to achieve its goal of becoming a premier African gold producer. With a first gold pour scheduled for Q2-2027, the company is well on its way to delivering value for all its stakeholders.