MONTAGE GOLD PROVIDES MID-YEAR KONÉ PROJECT EXPLORATION UPDATE; RESULTS CONFIRM HIGH GRADE MINERALIZATION AT MULTIPLE SATELLITE TARGETS
HIGHLIGHTS:
-
The Koné project hosts significant exploration potential
-
2,259km2 land package represents one of the largest gold projects by land area in
West Africa - +150km of mineralized structures have been identified across more than 35 targets within 7 mineralized trends
-
2,259km2 land package represents one of the largest gold projects by land area in
-
2024 exploration efforts are being prioritized on delineating higher grade satellite targets with the goal of supplementing production from the commencement of operations
- 15 targets out of the 35 identified are being drill tested, in addition to further reconnaissance exploration to identify more targets
- High grade targets in proximity to the Koné and Gbongogo Main deposits, within mining permit area and near the haul road, are being prioritized
-
A first 30,000m drill programme is expected to be completed by the end of
July 2024 , with the goal of ranking high priority targets and better informing the upcoming drill programmes -
As at
June 30th , a total of 21,175m had been drilled with preliminary results already successfully returning high grade intercepts across several targets:- Diouma North: 14.10m at 8.04g/t Au and 17.45m at 2.74g/t Au, 22.45m at 1.52g/t Au
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Lokolo Main : 12m at 6.60g/t Au - Sissédougou: 19m at 3.08g/t Au
- Yeré North: 14m at 1.62g/t Au
- A second 60,000m drill programme is expected to be launched later in Q3-2024 with the goal of delineating resources at top priority targets, in addition to continuing to drill test other targets
In addition, we are also making excellent progress to advance detailed engineering with the goal of completing this workstream before launching construction to further de-risk the development phase. We continue to be very pleased with the significant support received from local stakeholders, including numerous government agencies and local communities, with our environmental permit already received and our mining permit being in the final approval phase. We are equally pleased with our ongoing engagement with lenders who are expediently working alongside us.
We look forward to continuing to build on the momentum created to progress our strategy of creating a premier African gold producer and delivering value for all our stakeholders."
Due to historical work conducted on the extensive 2,259km2 land package which hosts Montage's Koné deposit, significant exploration potential has been demonstrated given that over 150km of mineralized structures having been identified across more than 35 targets within 7 mineralized trends.
In order to prioritize efforts, a first 30,000-meter drill programme, amounting to
A second 60,000-meter drill programme is expected to be launched in late Q3-2024 with the goal of delineating resources at selected top priority targets, in addition to continuing to drill test other targets.
The Koné project's significant exploration potential is already supported by the identification of 150km of mineralized structures across more than 35 targets within 7 mineralized trends. Furthermore, we believe that we are just scratching the surface given that Koné is one of
As a result of the ongoing success of our first 30,000-meter drill programme, having confirmed higher grade mineralization at several targets, we expect to commence our next 60,000-meter drill programme later this quarter with the goal of delineating resources by year end at selected targets."
ABOUT THE EXPLORATION PROGRAMME
As shown in Figure 1 below, the current production profile, as per the Updated Feasibility Study (the "UFS") published on
Management believes that significant potential exists to add further high-grade satellite deposits, with the aim of enhancing the profile of the Koné project by slotting these discoveries early in the mine plan. As shown in Figure 2 below, more than 35 targets have been identified within 7 mineralized trends, with many targets already drill tested.
Source for Indicated resources stated in map above: See press release dated
As detailed in Table 1 below, a 30,000 meter drilling programme is expected to be completed in late
|
Table 1: Current 30,000m drill program breakdown |
|
Gbongogo-Korotou Trend |
Lokolo Trend |
Bafretou-Niondje Trend |
Diouma North |
|
Niondje |
Gbongogo Main |
|
Bafretou 1 |
Gbongogo South |
Lokolo W-N |
Bafretou 2 |
Sena |
Lokolo South 2 |
Bafretou 3 |
Marahoué Gap |
|
|
The main objectives of the drilling programme vary by area, as detailed below:
-
Diouma North, Gbongogo South and
Lokolo Main targets: Prove the continuity of mineralization and the determine their potential scale - Bafretou 2, Sena, Niondje, Lokolo South 2 targets: Follow-up on historical intercepts
- Sissedougou: Re-interpretate and confirm historical data with further drilling expected
- Bafretou 3, Marahoué Gap, Gbongogo-Korotou Trend, Yere targets: Develop new targets along untested geochemical or structural trends
As of
Notable intercepts from the Diamond Drilling campaign include:
(apparent width)
- Diouma North: 14.10m at 8.04g/t Au and 17.45m at 2.74g/t Au, 22.45m at 1.52 g/t Au
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Lokolo Main : 12m at 6.60g/t Au - Sissédougou: 19m at 3.08g/t Au
- Yeré North: 14m at 1.62g/t Au
DETAILS BY SELECTED TARGETS
Diouma North hits multiple high-grade intercepts from recent diamond drilling
As shown in Figure 3 below, Diouma North lies 500 meters from the proposed Koné-Gbongogo Main haul road and has mineralisation hosted by gold bearing quartz-tourmaline veins within an intrusive rock such as that at the Gbongogo Main deposit.
Source for Indicated resources stated in map above: See press release dated
Diamond drilling completed at Diouma North in H1-2024 has significantly improved the geological understanding of mineralization, with results presented in Table 2 below.
Hole |
From |
To |
Length |
Uncut Grade (Au g/t) |
Grade Cut to 20 g/t (Au g/t) |
GBDDH064 * |
78.85 |
96.30 |
17.45 |
2.74 |
2.16 |
GBDDH064* |
127.00 |
138.00 |
11.00 |
2.21 |
2.21 |
GBDDH065 |
83.00 |
105.45 |
22.45 |
1.52 |
1.52 |
GBDDH066 |
134.60 |
148.70 |
14.10 |
8.04 |
2.00 |
*Previously published results
As shown in Figure 4 below, early drilling was sub-parallel to the intrusive hosted veins and this new drilling, oriented perpendicular to the veins has defined a south dipping mineralized structure up to 30 meters wide with minor mineralization in the hanging wall that can now be developed through systematic RC drilling. Further work will also target the North – South trending veins within the surrounding sediments.
Sissédougou returns multiple high-grade intercepts at depth near historic resource area
The Sissédougou target was drilled between 2012 and 2017 by La Mancha and Endeavour Mining. Montage is therefore currently in the process of compiling and verifying the historic data. As shown in Figure 6 below, recent confirmatory diamond drilling, across three holes, intersected an array of gold bearing quartz veins inside a sheared package of siliciclastic sediments. The highlight intercept was within hole SDDDH008 which intersected 19 meters at 3.08g/t Au. The grades and widths of the intercepted mineralization are encouraging which suggests that Sissédougou has the potential to be a satellite deposit for the Koné project. Interpretation and review of the geology and the structural control of the mineralization is ongoing, with follow-up drilling planned for Q4-2024. Complete results from the three diamond core holes are reported in Appendix 1.
Yeré: 14km gold in-soil untested geochemical anomaly
The Yeré North target is marked by a 2km-long gold consistent trend and is located at the Northeast of the Yere Main target which is a 14km gold in-soil untested geochemical anomaly. The geology consists of a Northeast striking sequence of andesite volcaniclastics and porphyritic andesite lavas intruded by a porphyritic diorite plug.
As shown in Figure 7 below, the first phase of RC drilling intersected 23 meters at 12.91g/t Au (incl 13 meters at 21.03g/t Au) in oxides while recent follow-up core drilling intersected 14 meters grading 1.62g/t Au (Hole SDDDH003) and 4.4 meters grading 2.08g/t Au (Hole SDDDH001). Mineralization remains poorly understood at present but appears related to the margins of an intrusive body within the principal regional scale structure. 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.
Neither
ABOUT
TECHNICAL DISCLOSURE
The Koné and Gbongogo Main Mineral Resource Estimates were carried out by Mr.
The Mineral Reserve Estimate was carried out by Ms.
For further details of the data verification undertaken, exploration undertaken and associated QA/QC programs, and the interpretation thereof, and the assumptions, parameters and methods used to develop the Mineral Reserve Estimate for the Koné
Samples used for the results described above come from diamond Drilling Holes and are based on 1 metre composite sample. Core samples have been cut in two by core blade at the camp facilities then shipped by road to Bureau Veritas facility in
Field duplicate samples are taken, and blanks and standards are added to every batch submitted. QA/QC has been approved in line with industry standards and interpretations reviewed by the Qualified Person.
QUALIFIED PERSONS STATEMENT
The scientific and technical contents of this press release have been verified and approved by
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the Company's mineral reserve and resource estimates; the timing and amount of future production from the Koné
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC (or "all-in sustaining costs") per payable ounce of gold sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses "cash costs" and "all-in sustaining costs" and other unit costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs and unit costs are considered to be key indicators of a project's ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management's discussion and analysis, available under our corporate profile at www.sedarplus.ca for a more detailed discussion of how we calculate such measures.
APPENDIX 1: H1-2024 DIAMOND DRILLING RESULTS
Prospect |
Hole ID |
Drill Type |
Collar Location |
Orientation |
Depth |
From (m) |
To (m) |
Length (m) |
Uncut Au (g/t) |
Grade Cut to 20g/t (g/t) |
|||
mE |
mN |
mRL |
Dip |
Azim |
|||||||||
Diouma North |
GBDDH062 |
Core |
769,642 |
991,552 |
343 |
-55 |
100 |
104.7 |
58.00 |
72.00 |
14.00 |
2.16 |
2.16 |
77.00 |
82.00 |
5.00 |
0.85 |
0.85 |
|||||||||
85.00 |
88.10 |
3.10 |
1.99 |
1.99 |
|||||||||
GBDDH063 |
Core |
769,630 |
991,576 |
342 |
-55 |
100 |
143.7 |
88.00 |
91.50 |
3.50 |
3.23 |
3.23 |
|
GBDDH064 |
Core |
769,690 |
991,578 |
341 |
-55 |
200 |
176.7 |
43.00 |
46.00 |
3.00 |
3.84 |
3.84 |
|
78.85 |
96.30 |
17.45 |
2.74 |
2.16 |
|||||||||
127.00 |
138.00 |
11.00 |
2.21 |
2.21 |
|||||||||
GBDDH065 |
Core |
769,656 |
991,487 |
342 |
-55 |
20 |
125.6 |
83.00 |
105.45 |
22.45 |
1.52 |
1.52 |
|
GBDDH066 |
Core |
769,636 |
991,432 |
343 |
-55 |
20 |
161.6 |
17.15 |
19.00 |
1.85 |
1.63 |
1.63 |
|
37.60 |
39.00 |
1.40 |
1.13 |
1.13 |
|||||||||
95.60 |
103.10 |
7.50 |
0.64 |
0.64 |
|||||||||
134.60 |
148.70 |
14.10 |
8.04 |
2.00 |
|||||||||
GBDDH067 |
Core |
769,623 |
991,398 |
344 |
-55 |
20 |
185.6 |
No significant intercept |
|||||
Yeré North |
SDDDH001 |
Core |
794,731 |
1,017,044 |
400 |
-55 |
123 |
191.7 |
8.00 |
12.40 |
4.40 |
2.08 |
2.08 |
52.80 |
56.00 |
3.20 |
1.15 |
1.15 |
|||||||||
SDDDH002 |
Core |
794,621 |
1,017,117 |
400 |
-55 |
123 |
239.7 |
No significant intercept |
|||||
SDDDH003 |
Core |
794,812 |
1,017,077 |
398 |
-55 |
260 |
116.6 |
76.00 |
83.00 |
7.00 |
0.87 |
0.87 |
|
95.00 |
109.00 |
14.00 |
1.62 |
1.62 |
|||||||||
SDDDH004 |
Core |
794,777 |
1,016,963 |
402 |
-55 |
300 |
257.7 |
No significant intercept |
|||||
|
GBDDH069 |
Core |
778,567 |
989,764 |
363 |
-55 |
313 |
125.6 |
47.45 |
59.45 |
12.00 |
6.60 |
5.02 |
|
SDDDH005 |
Core |
770,052 |
1,000,540 |
396 |
-56 |
107 |
131.6 |
30.00 |
68.20 |
38.20 |
0.72 |
0.72 |
SDDDH006 |
Core |
770,074 |
1,000,719 |
398 |
-55 |
136 |
135.5 |
109.00 |
113.20 |
4.20 |
4.16 |
4.16 |
|
Sissédougou |
SDDDH007 |
Core |
782,503 |
1,014,347 |
424 |
-55 |
125 |
166.0 |
37.35 |
45.80 |
8.45 |
1.04 |
1.04 |
133.90 |
145.00 |
11.10 |
2.62 |
2.62 |
|||||||||
156.00 |
159.75 |
3.75 |
3.19 |
3.19 |
|||||||||
SDDDH008 |
Core |
782,393 |
1,014,327 |
423 |
-56 |
126 |
185.8 |
140.00 |
156.00 |
16.00 |
1.02 |
1.02 |
|
161.00 |
180.00 |
19.00 |
3.08 |
3.08 |
|||||||||
SDDDH009 |
Core |
782,477 |
1,014,445 |
427 |
-56 |
125 |
149.6 |
125.00 |
134.00 |
9.00 |
2.71 |
2.71 |
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