In a striking turn of events, Montage Gold has made significant progress in enhancing the economics of its Koné gold project in West Africa. The latest study reveals a notably reduced construction cost and promising financial prospects, positioning the project as a potential game-changer in the gold mining industry.
The updated report, which is based on a gold price of $1,850 compared to the previous $1,600, reflects a substantial improvement in the project’s financial outlook. CEO Rick Clark expressed his enthusiasm, highlighting the material de-risking of the project’s financial parameters and the transformative impact of discovering higher-grade satellite deposits.
Moreover, the project’s forecast construction cost has risen by 31% from the previous study, yet Koné is poised to emerge as Côte d’Ivoire’s largest gold mine, with an average annual gold production of 349,000 oz. during its initial three years. The all-in sustaining cost of production is projected to be less than $1,000 per oz., with a remarkably short payback period of 2.6 years.
New Reserve and Production Estimates
The newly estimated 2,259-sq.-km property boasts 174.3 million probable tonnes grading 0.72 gram gold, equivalent to 4 million oz. of contained gold. The project is anticipated to yield 3.6 million oz. of gold over a 16-year mine life, with all-in sustaining costs projected at $899 per oz. during the initial three years and $998 over the mine’s lifespan.
Capital costs for the overall life of the mine have increased slightly by 5% compared to the previous report, amounting to $877 million. Notably, sustaining capital has observed a marked decrease of $126 million, reflecting an overall positive trajectory for the project.
Montage Gold is optimistic about the permit approval, targeting October as a potential milestone. Additionally, the company is commencing further drilling activities this month, with a specific focus on the Diouma North and Petit Yao regions. Excitingly, recent drilling at Diouma North has yielded promising results, reinforcing its potential as a significant satellite deposit near Gbongogo Main. Similarly, Petit Yao has shown exceptional drill results, hinting at its substantial prospects in contributing to the overall success of the Koné gold project.
