Montage Gold Corp.
Company Data
| Introduction
| Projects in Hand
| Management
News Update
| Chinese
| Address ： |
Suite 2800, Four Bentall Centre 1055 Dunsmuir Street PO Box 49225 Vancouver, BC |
| Tel No.： | 604-689-7842 |
| Web Site： | www.montagegold.com |
| E-mail： | jcain@montagegold.com |
| Contact Person： | Jake Cain |
| Position： | Strategy & Investor Relations Manager |
| Traded Market： | TSX-V | OTCQX |
| Traded Symbol： | MAU | MAUTF |
| Outstanding Shares： | ~344.58 Million |
| 52 Week High： | $ 2.06 |
| 52 Week Low： | $ 0.53 |
| Present Price： | Click Here |
Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné project, located in Côte d'Ivoire, at the forefront. Based on the Feasibility Study published in 2024, the Koné project has an estimated 16-year mine life, low AISC (All-In Sustaining Cost) of $998/oz over its life of mine, and sizeable annual production of +300koz of gold over the first 8 years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in developing projects in Africa to progress the Koné project towards a construction launch, thereby unlocking significant value for all its stakeholders.
Montage's Strategy
Focused on creating a premier African gold producer
- New management team appointed in early 2024
- Strong shareholder backing with Lundin Group, Zijin, and Barrick
- Koné project is a sizeable, long-life, low AISC, fully permitted asset
- Well positioned to unlock value in Africa for all stakeholders
Koné Project
Provides a foundation upon which to build a major gold company
- Koné will rank as a high quality West African mine once in production with a long mine life, low AISC and production of scale
- Koné benefits from soft ore and a very low strip ratio, which results in an above average strip-adjusted grade
Koné Gold Project, Côte d'Ivoire
The Koné Gold Project is located approximately 350 kilometres north-west of Yamoussoukro, the political capital of Côte d'Ivoire, and approximately 600 kilometres north-west of Abidjan, the commercial capital of the country. The Project is ideally situated near existing infrastructure and is accessible year-round via asphalt road and has access to ample water resources.
The Koné project ranks as one of the highest quality gold projects in Africa given its sizeable low-cost production and long mine life.
Significant Exploration Potential
One of the largest gold projects by land area in West Africa
- 2,259 sq. km Land Package, representing one of the largest gold projects by land area in West Africa
- Over 150km of mineralized structures identified
- 15 targets out of the 35 identified are being drill tested, in addition to further reconnaissance exploration to identify more targets
- Low process cost is key advantage to making discoveries within a 75km radius
- A first 30,000m drill program of $6M is underway with the goal of delineating resources at top priority targets
- A second 60,000m drill programme was launched in September 2024 with the goal of delineating resources by year-end at several targets, in addition to further drill testing of other targets
- Targeting the discovery of more than 1Moz of M&I resources, at a grade 50% higher than the Koné deposit, to be achieved before the commencement of production (See news release dated Oct. 7, 2024)
- Goal is to replicate success of Gbongogo Main: added $350M in pre-tax cash flow from 428koz of production, for only $1M to define ore body
Diouma North Target
- New discovery by Montage in early 2023
- 2km south of Gbongogo Main; on trend
- <500m from haul road
- 200m x 100m quartz diorite intrusive, similar to Gbongogo Main
- Follow-up core program planned on high grade target
Petit Yao Target
- 7km east of Koné deposit
- <3km southeast of haul road
- Interpreted strike of 900m
- Majority not yet drill tested
- High grade intercepts returned at several holes
- Drill program to continue in H2-2024
Lokolo Target
- Lokolo Main is the more advanced target of Lokolo trend
- 15km north-east of Koné deposit
- Majority not yet drill tested
- High-grade intercept of 12m at 6.6 g/t Au returned
- Drill program to continue in H2-2024
Sissédougou Target
- Sissédougou returns multiple high-grade intercepts at depth near historic resource area
- 17km north-east of Gbongogo deposit
- Drilled between 2012 and 2017 by La Mancha and Endeavour Mining, so Montage is currently in the process of compiling and verifying the historic data
- Sissédougou has the potential to be a satellite to Koné
- Majority not yet drill tested
- Drill program to continue in H2-2024
Yeré North Target
- Marked by a 2km-long gold consistent trend
- Located 4km Northeast of the Yeré Main target
- First phase of RC drilling intersected 23 meters at 12.91g/t Au (including 13 meters at 21.03 g/t Au) in oxides
- Recent follow-up core drilling intersected 14 meters grading 1.62 g/t Au (Hole SDDDH003) and 4.4 meters grading 2.08 g/t Au (Hole SDDDH001)
- Further work is ongoing and the prospect will be followed up with drilling in due course given the shallow and high grade nature of the mineralization
Koné Project Latest Development:
- Environmental and mining permits awarded
- Agreement on land compensation completed
- Near mine exploration underway
- C$180M private placement closed
Koné Project Next Steps:
- Delineation of satellite targets
- Financing discussions well advanced
- Land compensation and relocation activities
- Order of long-lead items and launch of construction
Attractive Investment Proposition
Strong re-rating potential as the Montage strategy is executed
Short-Term Value Creation:
Unlocking the Koné Project
- Secure project financing on attractive terms
- Deliver construction on-time and on-budget
- Deleverage company with quick payback following production start-up
- Unlock significant exploration value
Long-Term Value Creation:
- Build a greenfield exploration portfolio
- Create a project development pipeline
Leadership Team & Directors
Martino De Ciccio, CFA, Chief Executive Officer
Over 15 years experience in mining industry with extensive understanding of African mining landscape
Former Deputy CFO and Head of Investor Relations for Endeavour Mining
Peder Olsen, President & Chief Development Officer
Over 15 years experience in project development, operational and technical roles
Formerly held senior positions with Endeavour Mining
Played key leadership role in Construction of Houndé, Ity, Agbaou and Nzema
Constant Tia, CPA, M.Sc, Chief Financial Officer
Over 18 years in Finance
Ivorian national with profound understanding of West African region
14-year career at Kinross Gold
Formerly Regional CFO for Africa and Chile Regions for Kinross
Silvia Bottero, M.Sc, Geo, MBA, Executive Vice President of Exploration
Over 20 years in exploration
Most recently SVP Exploration at Endeavour Mining
Has made over 15Moz of gold discoveries in Côte d'Ivoire
Extensive permitting, public affairs and ESG experience
Pierre N'Guessan, Mining Eng., Senior Advisor, Government Relations
38 years in mining industry
Former head of mining permits department within Ministry of Mines, Côte d'Ivoire for 10 years
Former technical and site manager at Ity gold mine
Former public affairs manager at Endeavour Mining
Board of Directors
Ron Hochstein, Independent Chairman
Alessandro Bitelli, Independent Director
David Field, Independent Director
Anu Dhir, Independent Director
Richard P. Clark, Non-Independent Director
Martino De Ciccio, Non-Independent Director
On November 05, 2024, Montage Gold Corp. has implemented a revenue protection program with the goal of securing significant margins to enhance its financial flexibility and achieve its strategic objectives at the onset of production from its Kone project.
Martino De Ciccio, chief executive officer of Montage, commented: "We are pleased to complement our recently secured financing package with the successful execution of our revenue protection program which takes advantage of unprecedented put option pricing. By entering into put options, we have secured a minimum gold price of $2,500 (U.S.) on 400,000 ounces over the 2027-2028 period while retaining full upside to the gold price. As prudent allocators of capital, this program positions us well to generate significant margins and deliver on our strategic objectives for the benefit of all stakeholders."
The voluntary revenue protection program consists of the purchase of 400,000 ounces of put options at a strike price of $2,500 (U.S.), for a total cash consideration of $52.7-million (U.S.), equally spread every month across the January, 2027, to September, 2028, period, which can be cash or physically settled.
On October 23, 2024, Montage Gold Corp. has entered into final documentation with both Wheaton Precious Metals International Ltd. (a wholly owned subsidiary of Wheaton Precious Metals Corp.) and Zijin Mining Group Co. Ltd. (through its subsidiary and non-operating division) with respect to an aggregate $825-million (U.S.) financing package to finance the development of its flagship Kone project in Ivory Coast, which is set to become West Africa's next sizable, long-life, low production-cost gold mine.
The financing package is well aligned with Montage's goal of obtaining significant financial and strategic flexibility while minimizing equity dilution.
Martino De Ciccio, chief executive officer of Montage, commented: "Today's announced $825-million (U.S.) funding package for the construction of our flagship Kone project in Cote d'Ivoire provides significant funding headroom, ahead of launching our construction, as it increases our liquidity sources to approximately $970-million (U.S.). Moreover, it is the culmination of an exhaustive financing process which generated strong interest given the high-quality nature of our project coupled with management's proven construction track record.
"This funding package is well aligned with our goal of pursuing the optimal financing solution, which maximizes key valuation per share metrics, by considering both the cost of capital and equity dilution, alongside other important considerations such as retaining exploration upside and maintaining significant strategic, financial and operating flexibility.
"Furthermore, we are extremely pleased to have concluded our financing through the formation of strategic partnerships with both Wheaton and Zijin, who share our vision of creating a premier African gold producer. With the financing milestone now achieved, we look forward to soon launching the construction of our Kone project, which is set to become West Africa's next sizable, long-life, low-production-cost gold mine, and poised to unlock value for all stakeholders."
October 7, 2024, Montage Gold Sets Short-Term Discovery Target of More Than 1 Million Ounces of Higher-Grade M&I Resources
https://www.montagegold.com/_resources/news/2024/nr-20241007.pdf?v=0.1
August 14, 2024, Montage Gold closes C$180-million private placement
https://www.montagegold.com/_resources/news/2024/2024-08-14.pdf
July 17, 2024, Montage Gold Upsizes Brokered Private Placement to C$180M
https://www.montagegold.com/news/montage-gold-upsizes-brokered-private-placement-to-c180m