Montage books near-surface gold in Côte d’Ivoire

Early drilling by Montage Gold (TSX: MAU; US-OTC: MAUTF) at its Wendé project in Côte d’Ivoire has returned shallow gold, confirming the potential of what the Canadian developer says could become a significant exploration asset.

Standout hole BMRC0030 at the Bobosso target cut 6 metres grading 3.86 grams gold per tonne from 98 meters depth, as well as 8 metres of 8.06 grams gold from 134 metres and 14 metres of 2.92 grams gold from 146 metres, Montage said Wednesday in a statement. Another hole, BMRC0029B, intersected 13 metres of 4.36 grams gold from 32 metres depth.

Since being awarded the 107-sq.-km greenfield property in December as part of an expansion of its Côte d’Ivoire land package, Montage has drilled more than 6,500 metres at Wendé out of a planned 9,000. Exploration work so far has confirmed the continuity of Bobosso’s gold system and extended known mineralization, Montage says.

Results “continue to increase the confidence of mineralization at the Bobosso target, and the company’s ability to delineate a maiden resource for the project through further drilling,” Scotia Capital mining analyst Ovais Habib said Wednesday in a note.

Located about 360 km northeast of Abidjan, Wendé lies along the Ouango-Fitini shear zone, a regional structure that hosts several significant gold deposits and mining operations. It’s accessible from Abidjan via a paved national highway to within 40 km of the property.

More than 60,000 metres of drilling was conducted at Wendé by previous owners — mainly on Bobosso, which hosts a gold-in-soil anomaly covering about 7 sq. km.

Eight targets

Besides Bobosso, eight other exploration targets have been identified across the property. Montage aims to rapidly advance Wendé towards a maiden resource through follow-up drilling.

Other highlights released Wednesday include hole BMRC0014, which cut 17 metres of 1.35 grams gold from 95 metres depth, and hole BMRC0026, which intersected 8 metres of 2.68 grams gold from 20 metres. Hole BMRC0008, meanwhile, cut 8 metres of 1.98 grams gold from 47 metres.

Mineralised trends at Bobosso remain open both downdip and along strike, Montage said.

The latest drill results “demonstrate the prospectivity of the property and increase our confidence in our ability to rapidly delineate a maiden resource through upcoming drill programmes,” CEO Martino De Ciccio said.

Ivorian authorities have just granted Montage an exploration permit for the 349-sq.-km Dabakala greenfield property, the company also said. Dabakala is located immediately north of Wendé.

Key country

Côte d’Ivoire, where Montage is working toward a first gold pour at the Koné mine later this year, is fast emerging as a key jurisdiction for the Vancouver-based company. Based on a recent feasibility study, Koné is expected to produce more than 300,000 oz. gold annually during its first eight years of operation over a projected 16-year mine life.

Montage has also expanded its development pipeline through the April acquisition of African Gold, adding the resource-stage Didievi project to its portfolio. Earlier this month, Montage outlined an expanded 60,000-metre drill program at Didievi aimed at expanding and upgrading resources following a series of high-grade drilling results.

Shares of Montage fell 3.6% to $15.89 Wednesday morning in Toronto, valuing the company at about $6.4 billion (US$4.5 billion). The stock has traded between $4.26 and $17.60 in the past year.