2024 Updated Feasibility Study
In January 2024, Montage released the results of an Updated Definitive Feasibility Study (the “UFS”) on the Koné Gold Project, which included the Gbongogo Main satellite deposit in the mine plan for the first time. The press release announcing UFS results is available at the link below.
The 43-101 technical report for the UFS will be filed on SEDAR and available on the Montage website no later than March 1, 2024.
A summary of operating and financial metrics from the UFS are presented in below along with a comparison to the 2022 DFS.
| Gold Price ($/oz) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Units | $1,650 | $1,750 | $1,850 | $1950 | $2,050 | ||
| NPV5% | $M | 721 | 905 | 1,089 | 1,273 | 1,456 | ||
| IRR | % | 22.6% | 26.9% | 31.0% | 35.2% | 39.3% | ||
| Total Cash Cost1 | $/payable oz | 954 | 962 | 969 | 977 | 984 | ||
| AISC1 | $/payable oz | 983 | 991 | 998 | 1,006 | 1,013 | ||
| Payback | years | 3.2 | 2.8 | 2.6 | 2.3 | 2.2 | ||
| Metrics | Units | UFS | DFS |
|---|---|---|---|
| Pit Optimization Gold Price | $/oz | $1,550 | $1,250 |
| Financial Model Base Case Gold Price | $/oz | $1,850 | $1,600 |
| Life of Mine | years | 16.0 | 14.8 |
| Total Material Processed | Mt | 174.3 | 161.1 |
| Contained Gold (Probable Reserves) | Moz | 4.01 | 3.42 |
| Strip Ratio | w:o | 1.18:1 | 0.90:1 |
| Average Annual Mining Rate | Mtpa | 42.4 | 35.0 |
| Mill Throughput | Mtpa | 11.0 | 11.0 |
| Average Head Grade, first 3 years | Au g/t | 1.15 | 0.93 |
| Average Head Grade, first 8 Years | Au g/t | 0.96 | 0.81 |
| Average Head Grade, LOM | Au g/t | 0.72 | 0.66 |
| Processing Recovery, first 3 Years | % | 89.6% | 91.1% |
| Processing Recovery, first 8 Years | % | 90.0% | 90.3% |
| Processing Recovery, LOM | % | 89.0% | 89.3% |
| Total Gold Production, LOM | Moz | 3.57 | 3.06 |
| Average Gold Production, first 3 years | koz/yr | 349 | 285 |
| Average Gold Production, first 8 years | koz/yr | 301 | 255 |
| Average Gold Production, LOM | koz/yr | 223 | 207 |
| Mining Cost Per Tonne Mined, LOM | $/t, mined | $3.22 | $2.73 |
| Mining Cost Per Tonne Processed, LOM | $/t, processed | $6.68 | $5.20 |
| Processing Cost, LOM (incl. rehandle) | $/t, processed | $8.94 | $8.04 |
| G&A, LOM | $/t, processed | $0.98 | $0.93 |
| Royalties, LOM | $/t, processed | $2.84 | $1.97 |
| Total Operating Costs, LOM | $/t, processed | $19.83 | $15.89 |
| Average AISC, first 3 years | $/oz | $899 | $824 |
| Average AISC, LOM | $/oz | $998 | $933 |
| Initial Capital Expenditure | $M | $712 | $544 |
| Sustaining Capital (incl. Closure) | $M | $165 | $292 |
| Total LOM Capital (incl. Closure) | $M | $877 | $836 |
| NPV5%, pre-tax (100%) | $M | $1,437 | $992 |
| Pre-tax IRR | % | 34.6% | 39.6% |
| NPV5%, after-tax (100%) | $M | $1,089 | $746 |
| After-tax IRR | % | 31.0% | 34.8% |
| Payback Period | years | 2.6 | 2.7 |
Notes:
1. Cash costs per payable ounce of gold and per tonne processed, AISC per payable ounce of gold sold and per tonne processed are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”. AISC per payable ounce includes all mining costs, processing costs, mine level G&A, royalties, and sustaining capital and is adjusted to reflect movements in stockpiles. Cash costs per payable ounce includes all mining costs, processing costs, mine level G&A, and royalties and is adjusted to reflect movements in stockpiles.
