Montage Gold breaks ground at Koné project

West African-focused miner Montage Gold (TSX-V: MAU) has officially begun construction on its flagship Koné gold project in Côte d’Ivoire.

The Koné project, regarded one of the highest quality gold projects in Africa, is anticipated to deliver its first gold production by the second quarter of 2027. Early works are already underway, with major construction activities set to begin in the coming weeks.

“The commencement of construction at the Koné project in Côte d’Ivoire marks a significant milestone in our journey to becoming a premier African gold producer and the culmination of this year’s efforts,” chief executive officer Martino De Ciccio said in a statement.

Montage Gold, in collaboration with contractor Lycopodium Minerals, recently concluded a comprehensive engineering review based on its Updated Feasibility Study (UFS) published in January 2024. This review has led to significant optimizations in the crushing and milling circuits, enhancing operational efficiency.

To mitigate construction risks, Montage has secured long-lead items, ensuring price stability and timely delivery. The project is fully funded, with upfront capital expenditures estimated at $835 million and more than $900 million in liquidity sources available.

A key component of Montage’s strategy is continued exploration during construction. The company’s ongoing 90,000-meter drill program is expected to conclude in the coming weeks, with a maiden mineral resource anticipated in the first quarter of 2025.

Montage aims to identify more than one million ounces of measured and indicated resources with a grade 50% higher than the Koné deposit before production begins. Current proven and probable reserves at the site are estimated at 174.3 million tonnes grading 0.72 grams per tonne gold, equating to just over 4 million ounces of gold.

Promising future

With an estimated mine life of 16 years, the Koné gold project is poised to significantly contribute to Côte d’Ivoire’s mining sector while cementing Montage’s position as a prominent player in African gold production, the company said.

Montage is also committed to fostering local economic development by establishing an Ivorian supply chain. The company is advancing contracts to source fuel, cement, aggregates, and explosives locally, as well as sustainable food supplies for the project and camp.