Montage moves up Côte d’Ivoire gold pour

Canadian developer Montage Gold (TSX: MAU, US-OTC: MAUTF) is advancing first production at its flagship Koné project in Côte d’Ivoire by six months after construction crews made faster-than-expected progress. The stock soared to a new record.

First gold is now expected to be produced in the fourth quarter of this year instead of 2027’s second quarter, Montage said Monday in a statement. Construction remains on budget with more than $545 million (C$756 million), or 63%, of the capital committed.

“The rapid construction progress… and acceleration of first gold to late 2026 aligns well with prior commentary from management and affords the company improved operational and financial flexibility,” Scotia Capital mining analyst Ovais Habib said Monday in a note.

Montage shares surged 12% to C$11.19 Monday morning in Toronto, boosting the company’s market value to about $4.1 billion ($2.9 billion). It’s their highest intraday level since the company went public in late 2020.

Located about 350 km northwest of Yamoussoukro, the country’s capital, Koné is Montage’s main project, targeting annual output of 300,000 oz., and one of the largest mining sites in West Africa. It covers 1,318 sq. km and includes several satellite targets.

Oxide sizer

More than 3,000 employees and contractors are now active at Koné. Key milestones achieved so far include the erection of all 14 carbon-in-leach tanks, piperack and grid mesh walkways. Construction crews also completed an oxide sizer and delivered a ball mill to the site.

Construction of a permanent camp is nearing completion, with all permanent rooms fully fitted and available for use. An airstrip has been completed and is expected to be operational in this quarter.

Grid connection is progressing rapidly, with power line construction of a 33 kV overhead line to the camp, river abstraction and processing plant main area nearing completion, Montage said. Construction of a 225 kV substation construction is advancing on schedule, and the erection of 225 kV powerline towers is under way.

New village

A resettlement village, which opened in November, is now fully occupied. It includes new houses, a school, a pharmacy, a maternity hospital, a market, a community centre and religious buildings.

Koné is estimated to hold 269 million indicated tonnes grading 0.63 gram gold per tonne for contained metal of 5.49 million oz., according to data released by Montage in November. Inferred resources stand at 43 million tonnes grading 0.51 gram for contained metal of 704,000 ounces.

Montage is planning to release an updated resource estimate in the first quarter. It will incorporate 2025 drilling data, including maiden resources on advanced targets such as Petit Yao.

Drilling program

This year’s $16-million exploration program calls for about 99,000 metres of drilling. It will include 90,000 meters at Koné and 9,000 meters on the recently awarded Wendé property, Montage said.

Crews drilled some 115,000 meters at Koné last year as efforts focused on delineating higher-grade satellite resources.

Montage last year set itself a goal of finding more than 1 million oz. in measured and indicated resources on the property at a grade of at least 1 gram gold before targeted production starts.

The company envisages a 16-year mine life for Koné, with annual open-pit production averaging 301,000 oz. over the first eight years. A 2024 feasibility study calculated the project would have an after-tax net present value of $3.1 billion if gold prices averaged $3,000 an ounce.