Montage Gold raises $26 million for Koné project in Africa

Originally aiming to raise C$20 million ($15m), Montage Gold (TSXV: MAU) saw its efforts culminate in a significantly larger sum, reaching C$35.2 million ($26m) upon closing on March 12. This was achieved through the sale of 50.3 million shares at C$0.70 per share.

The net proceeds from this private placement are designated for advancing the 100%-owned Koné gold project, which is nearing a construction decision in Côte d’Ivoire. A portion of these funds will also be allocated towards exploring nearby targets, as well as for working capital and general corporate purposes.

Montage CEO Martino De Ciccio expressed satisfaction with the robust investor demand for the upsized non-brokered private placement. Notable investments were made by the Lundin family, along with contributions from directors and officers of Montage. De Ciccio stated, “We look forward to progressing our strategy of building a premier multi-asset African gold producer, with our Koné project at the forefront.”

Situated approximately 80 km south of Séguéla, the Koné project has been the subject of a recent feasibility study. This study outlines a mine with a projected 16-year life, producing 378,000 oz. annually during the initial three years. The all-in sustaining cost during this period is estimated at $899/oz., gradually rising to $998/oz. over the mine’s lifespan.

The project boasts an after-tax net present value at a 5% discount of $1.09 billion and a 31% internal rate of return, based on a gold price of $1,850 per ounce. Pre-production capital costs are anticipated to be $712.1 million, with after-tax payback projected within 2.6 years.

In terms of reserves, the Koné deposit comprises 11.3 million oxide tonnes grading 0.63 g/t gold, 7.9 million transition tonnes at 0.63 g/t gold, and 155.1 million fresh tonnes at 0.73 g/t gold. Including these reserves, the indicated resource for Koné stands at 229 million tonnes grading 0.59 g/t gold, containing 4.4 million ounces.

Moreover, the Gbongogo Main deposit contributes an indicated resource of 11 million tonnes grading 1.5 g/t, containing 520,000 ounces. Together, these indicated resources total almost 4.9 million oz. Additionally, there is an inferred resource for Koné of 25 million tonnes grading 0.5 g/t, containing 400,000 oz. of gold.

The project’s operational plan involves mining ore from three pits for the Koné and Gbongogo Main deposits. The processing plant is slated to have an annual throughput of 11 million tonnes, featuring two parallel high-pressure grinding rolls followed by ball mills. Subsequently, the slurry will undergo thickening and pass through a carbon-in-pulp circuit, followed by elution, electrowinning, and gold smelting.


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