Montage Doubles Mineralized Strike and Depth of Koné Deposit; Continues to Deliver on Plan
January 19, 2021
Vancouver, British Columbia — January 19, 2021 — Montage Gold Corp. (“Montage” or the “Company”) (TSXV:MAU) is pleased to report the final results of its Phase 1 resource expansion drill program at the Morondo Gold Project (“MGP”) in Côte d’Ivoire.
“The completion of the Phase 1 expansion drill campaign marks a significant milestone for Morondo. The program has achieved our goal of confirming and further demonstrating the scale potential and simplicity of the Koné deposit. This puts us in a great position for the delivery of the Inferred Mineral Resource update expected by the end of the month,” commented Hugh Stuart, CEO and Director of Montage.
“In many respects, the Koné orebody is similar to a porphyry gold deposit, with very homogenous mineralization and significant true widths up to 330m. It is an ideal open pit development project that can easily be mined on a large scale at low cost thanks to its very low expected strip ratio, relatively soft rock, and favorable location with respect to access and cheap grid power. In addition, the presence of higher-grade intervals within the wider mineralized envelope gives us the opportunity to process at an elevated cut-off grade during the earlier years of the project and this is something we have been evaluating. We continue to deliver on the plans we set for ourselves at the IPO of Montage and look forward to delivering a robust PEA as the next major milestone for the Company at the end of Q1 2021.”
- Resource expansion drilling extends known mineralization to depths of up to 450m and expands strike length of the current deposit to over 2km.
- Phase 1 drill campaign confirms average true width of continuous mineralization exceeds 200m over 800m of strike including:
- MDD014: 200.9m at 0.80g/t including 48.64m grading 1.90g/t
- MDD015B: 330.7m at 0.58g/t including 99.45m grading 0.96g/t
- MDD023: 226m at 0.77g/t including 105m grading 1.24g/t
- Inferred Mineral Resource update by end of January 2021.
- 35,000m Phase 2 drill program underway.
- Exploration drilling outside of Koné to follow up on previous results at Petit Yao target:
- MRAC128: 12m grading 4.15g/t from surface
- MRAC118: 15m grading 1.71g/t from 15m
- Preliminary Economic Assessment (“PEA”) on track for end of Q1.
- $33M cash and fully funded to advance the MGP to completion of a Feasibility Study by end of 2021.
Phase 1 Resource Expansion Drill Program
The Phase 1 Resource Expansion Drill Program was designed to demonstrate the depth potential of mineralization at the Koné deposit as well as extensions along strike (Figures 1 and 2).
A total of 22,193m of drilling (7,566m of RC and 14,627m of core) has been completed since the October 2018 Inferred Mineral Resource Estimate of 52.5Mt grading 0.91g/t 1,536koz (at a 0.50g/t cut-off) (the “October 2018 Resource”) see October 3, 2018 news release on www.orcagold.com.
This drilling has now established continuity of mineralization to depths of up to 450m from surface and over a strike length of 2.1km, doubling the mineralized strike and depth extent of the Koné deposit.
The cross-section below (Figure 2), demonstrates the depth extension of mineralization to 450m below surface as well as the significant true width of the deposit and the horizontal mining widths, starting with 250m at surface and widening further to 300m at depth.
Selected results from the Phase 1 expansion drilling are shown in the table below. Complete drill results from the Phase 1 expansion drill program are provided in Appendix 1 of this release.
The key features of the Koné deposit that Montage believes make it an ideal development project are the simplicity of the deposit and the consistency of mineralization over extremely wide widths.
- Average true width of continuous mineralization exceeds 200m over 800m of strike:
- Potential for simple, large scale, low-cost mining
- Potential for horizontal mining widths of up to 300m
- Potential for low strip ratio
- PEA evaluating opportunity for mining/processing at an elevated cut-off grade in early years:
- Discrete higher-grade intervals within the broader mineralized envelope (see Figure 2: 99.45m at 0.96g/t and 106.1m grading 1.12g/t within section 4800)
- Potential positive impact on production levels, cost profile and capital payback
Inferred Mineral Resource Update
With the completion of the Phase 1 Expansion Drill Program, an updated Inferred Mineral Resource is now being estimated by MPR Geological Consultants Pty Ltd and is expected by the end of January 2021.
The October 2018 Resource was based on a total of 18,172m of drilling. The new estimate will include an additional 22,193m of drilling for a total of 40,365m (25,210m of RC and 15,155m of core).
As part of the ongoing PEA, Montage has been evaluating various cost parameters for the project and the associated scale benefits given the nature of the Koné deposit and as such, the Company expects to utilize a cut-off grade of less than 0.50g/t for reporting the upcoming resource calculation to more closely reflect the anticipated mining cut-off grade that may be used during the potential mining of the deposit.
Phase 2 Drill Program Underway
Montage commenced a 35,000m infill drilling program at the MGP on January 10th, 2021, with five core rigs and one RC rig. This Phase 2 program is aimed at upgrading the Inferred Mineral Resource at Koné to the Indicated category by the end of Q2 2021. The Indicated Mineral Resource Estimate will support a Feasibility Study, which Montage plans to complete by year-end 2021.
Preliminary Economic Assessment Progress
The PEA work programs continue to advance with the status of various programs and testing are as follows:
- Hydrological drilling — completed
- Geotechnical drilling — completed
- Mining throughput study — completed
- Pit optimizations/design and mine scheduling — awaiting resource
- Metallurgical test work — 70% complete
- Engineering and design work — 40% completed
- Tailings and water storage design — 40% complete
- Environmental Impact Assessment — 10% complete
The PEA results remain on track for delivery late in Q1 2021.
Petit Yao Exploration Program — Potential for High-Grade Satellite Feed
The Phase 2 Program will also include the further testing of off-resource targets, in particular at the Petit Yao prospect where shallow reconnaissance drilling in 2019 intersected 12m grading 4.15g/t from surface and 15m grading 1.71g/t from 15m.
Petit Yao hosts a large +100ppb soil anomaly over an area of approximately 2km2, 8km east of the Koné deposit. In late 2019 and early 2020, the Company completed a first pass program of 2,814m of shallow (30m vertical) drilling which will now be followed up.
A further program of shallow aircore drilling is planned for Q1 combined with a short trenching program to define targets for deeper RC drilling early in Q2. Further reconnaissance exploration is also continuing across the permit area.
Operating Under Budget; Business Plan Fully Funded for 2021
Montage completed the Phase 1 drill program as scheduled and under budget and remains fully funded for its business plan through 2021. This includes: Phase 2 drill program (35,000m); PEA delivery by end of Q1 2021; an Indicated Mineral Resource Estimate by the end of Q2 2021; and a Feasibility Study by the end of 2021.
As of December 31, 2020, Montage had a cash balance of approximately C$33 million.
ABOUT MONTAGE GOLD CORP.
Montage Gold Corp. (TSXV:MAU) is a Canadian-based precious metals exploration and development company focused on opportunities in Côte d’Ivoire. The Company’s flagship property is the Morondo Gold Project, located in northwest Côte d’Ivoire, which currently hosts an Inferred Mineral Resource of 52.5Mt grading 0.91 g/t for 1,536koz of gold, based on a 0.5 g/t cutoff grade. Montage has a management team and board with significant experience in discovering and developing gold deposits in Africa. The Company is rapidly progressing work programs at the Morondo Gold Project towards completion of a Feasibility Study by the end of 2021.
QUALIFIED PERSONS STATEMENT
The Inferred Mineral Resource was estimated using an optimal pit shell generated for constraining Inferred Mineral Resources with dimensions of approximately 1,100 m by 620 m, with a maximum depth of around 260 m, and applying a gold price of US$1,500/oz. See the Company’s technical report entitled “Amended and Restated NI 43-101 Technical Report for the Morondo Gold Project, Côte d'Ivoire” dated as of September 17, 2020, and available on SEDAR at www.sedar.com (the “Morondo Technical Report”). The Morondo Technical Report was prepared for the Company by Jonathon Robert Abbott, BASc Appl. Geol, MAIG, of MPR Geological Consultants Pty Ltd. and Remi Bosc, Eurgeol, of Arethuse Geology SARL, who are “qualified persons” and “independent” of Montage within the meanings of NI 43-101.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the Chief Executive Officer of the Company, a Chartered Geologist and a Fellow of the Geological Society of London. Samples used for the results described herein have been prepared and analyzed by fire assay using a 50-gram charge at the Bureau Veritas facility in Abidjan, Côte d’Ivoire. Field duplicate samples are taken and blanks and standards are added to every batch submitted.
Chief Executive Officer
Executive Vice President, Corporate Development
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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 resource properties, and the Company’s plans, focus and objectives. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices, uncertainties inherent in the exploration of mineral properties, the impact and progression of the COVID-19 pandemic and other risk factors set forth in the Company’s final prospectus under the heading “Risk Factors”. The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
APPENDIX 1: Core drilling Results for holes drilled post the October 2018 Inferred Mineral Resource Estimate
Shaded intervals represent the full mineralized width of the Koné deposit
Intercepts are +90% of true width
Grid: WGS84 UTM Zone 29N
Holes denoted with * have been previously released.
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