Montage Announces the start of a 50,000m Drill Program and Development Plans for its Morondo Gold Project in Côte d’Ivoire
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Montage Announces the start of a 50,000m Drill Program and Development Plans for its Morondo
Gold Project in Côte d’Ivoire
Vancouver, British Columbia – October 26, 2020 – Montage Gold Corp. (“Montage” or the “Company”)
(TSX-V:MAU) is pleased to announce that following the successful completion of its initial public offering
(“IPO”) of $30,000,000, the Company is now pushing ahead with an aggressive resource expansion drill
program at its 100%-owned Morondo Gold Project (“MGP”) in Côte d’Ivoire. Technical work programs are
also underway that will form the basis of a Preliminary Economic Assessment (“PEA”) scheduled for
delivery in late Q1 2021.
HIGHLIGHTS:
• Recent deep drilling intersects 191.2m grading 1.19g/t, 106.15m grading 1.12/t and 91.32m at
1.22g/t and confirms mineralization extends to up to 250m below existing resource
• 50,000m drill program has commenced and is aimed at expanding and upgrading resources at
MGP
o Five drill rigs on site
o 20,000m of drilling to update Inferred Mineral Resources in early Q1 2021
o 30,000m of drilling to upgrade to Indicated Mineral Resources by late Q2 2021
• Engineering studies underway in support of the PEA
o Metallurgical testing, environmental baseline, geotechnical and hydrology studies
o PEA has now been commissioned and will be managed by Lycopodium Pty Ltd
• PEA delivery targeted by the end of Q1 2021
“The next 15 months are going to be very busy for Montage given the goals we have set for ourselves ”
commented Hugh Stuart, President and CEO of Montage . “The success of our deep drilling campaign
earlier this year has set us up very well to confirm the potential of the Morondo Gold Project as a simple,
economically strong, large scale, open pit gold project. Following the completion of our IPO, we are now
well-funded to deliver on this objective.”
DETAILS:
Exploration Update
As at October 3, 2018, t he MGP hosted an Inferred Mineral Resource of 52.5Mt grading 0.91 g/t for
1,536koz of gold (based on a 0.5 g/t cut-off grade) outlined by 18,172m of drilling. Further work completed
by Montage during 2019 and 2020 has demonstrated the resource expansion potential at depth,
extending the known mineralisation to 400 -450m below surface. The table below and figures 2 and 3
show results of the drilling completed during 2019 and 2020:
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Hole Down-hole Intercept (m) Au g/t
From To Length Uncut
MRRD001* Mineralised Width 134.00 315.00 181.00 0.77
Including 198.35 298.60 100.25 1.05
MRRD002* Mineralised Width 244.35 426.16 181.81 0.81
Including 334.83 426.15 91.32 1.22
MRRD003A* Mineralised Width 243.00 411.30 168.30 0.60
Including 243.00 290.20 47.20 0.95
369.35 386.00 16.65 1.27
MRRD004* Mineralised Width 175.60 360.25 184.65 0.57
Including 175.60 182.10 6.50 1.00
247.00 255.70 8.70 1.24
283.00 294.00 11.00 0.94
310.70 348.00 37.30 1.04
MRRD005* Mineralised Width 144.00 354.00 210.00 0.54
Including 259.60 284.70 25.10 1.63
295.00 315.00 20.00 0.73
MRRD006* Mineralised Width 86.10 241.00 154.90 0.77
Including 86.10 126.00 39.90 0.90
166.00 241.00 75.00 0.91
MRRD007* Mineralised Width 2.00 118.00 116.00 0.76
Including 2.00 28.00 26.00 1.35
36.00 48.00 12.00 0.98
73.00 83.00 10.00 1.15
107.00 118.00 11.00 0.78
MDD003 Mineralised Width 119.90 311.10 191.20 1.19
Including 122.00 159.70 37.70 2.03
167.40 193.00 25.60 0.99
203.00 223.20 20.20 0.68
229.45 259.50 30.05 1.29
270.00 304.60 34.60 1.79
MDD004 Mineralised Width 366.65 569.60 202.95 0.46
Including 470.65 498.65 28.00 1.51
522.75 531.55 8.80 0.93
MDD005 Mineralised Width 387.10 573.95 186.75 0.88
387.10 417.65 30.55 0.72
475.80 540.40 64.70 1.89
MDD006 Mineralised Width 283.15 556.65 273.50 0.61
Including 283.15 359.00 75.85 0.84
385.00 438.25 53.25 0.82
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493.25 524.00 30.75 0.59
MDD007 Mineralised Width 199.75 250.15 50.40 0.67
Including 199.75 215.70 15.95 0.67
231.40 247.55 16.15 0.74
MDD008 Mineralised Width 208.50 405.90 197.40 0.73
Including 255.20 266.70 11.50 0.91
288.40 405.90 117.50 1.00
MDD009 Mineralised Width 175.15 441.15 266.00 0.71
Including 175.15 281.25 106.10 1.12
288.45 319.05 30.60 0.64
413.20 432.65 19.45 0.72
MDD010 Mineralised Width 360.00 433.30 73.30 0.43
Including 360.00 368.55 8.55 1.03
382.60 391.15 8.55 0.57
410.65 423.00 12.35 0.53
* Holes previously released on February 20, 2020
Note: Hole locations are listed in Appendix 1
Exploration Plans
The next 20,000m resource expansion drill program, currently underway, is targeting resource growth
from the following areas:
• At Depth: Tighter drill spacing to depth will establish continuity of mineralization below the
existing resource;
• Near Surface: Additional shallow drilling will be conducted to intersect the footwall contact in
areas where earlier drilling (from 2018 and prior) ended in mineralization; and
• Along Strike: To date, little drilling has been conducted beyond the footprint of the current
Inferred Mineral Resource. Drilling will test strike extensions of the mineralization.
This initial phase of drilling is expected to be completed before year-end 2020 and will position Montage
to release an updated Inferred Mineral Resource estimate in Q1 2021.
Preliminary Economic Assessment Underway
In parallel with ongoing drilling, Montage has now commissioned a PEA that will be overseen by
Lycopodium in Brisbane, Australia employing several international consultants, including:
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Study Consultant
Metallurgical Test Work SGS Lakefield, Canada
Resource Estimation MPR Geological Consultants Pty Ltd., Perth, Australia
Geotechnical Study SRK, Cardiff, UK
Mining Studies Carci Consultants, UK
Hydrology Study GCS Consultants Ltd., RSA
Tailings and Water Storage Knight Piesold, Brisbane, Australia
Environmental Mineesia, UK
The goal of the PEA is to demonstrate the viability of a large-scale open pit development at the MGP.
The Project exhibits a number of characteristics that position it well to achieve this goal, including:
• The primary deposit at MGP, Koné, is characterized by a simple, wide body of mineralisation
ideally suited for large scale, low cost, open pit mining;
• Preliminary metallurgical work supports a simple, standard, crush-grind-leach flowsheet;
• A low rock hardness, reducing power consumption
• True widths of mineralization up to 250m and a 45° dip to the west, suggest a very low strip
ratio;
• Close proximity to grid power; and
• Strong community support and minimal habitation within the project footprint
The PEA will be based on an upgraded Inferred Mineral Resource and is expected to be completed by
late Q1 2021.
Future Plans
Upon completion of the current 20,000m drill program (early Q1 2020) the Company will follow-up with
a 30,000m program designed to upgrade estimated Inferred Mineral Resources to the Indicated Mineral
Resource category by the end of Q2 2021. This new Indicated resource could then form the basis for a
Feasibility Study, expected to be completed by the end of 2021.
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ABOUT MONTAGE GOLD CORP.
Montage Gold Corp. (TSX-V: 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 (“MGP”), located in northwest Côte d’Ivoire, which 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 Inferred Mineral Res ource 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 used a gold price of US$1,500/oz. See the Company’s amended an d restated
technical report entitled “Amended and Restated NI 43 -101 Technical Report for the Morondo Gold
Project, Côte d'Ivoire ” with an effective date of September 17, 2020, available on SEDAR at
www.sedar.com, which 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 Office of the Company, a
Chartered Geologist and a Fellow of the Geological Soc iety of London. Samples used for the results
described herein have been prepared and analy sed 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For Further Information, Contact:
Adam Spencer
Executive Vice President, Corporate Development
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Figure 1: Koné Prospect Map
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Figure 2: Cross Section 4800N
Figure 3: Cross Section 4900N
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Appendix 1: Drill Hole Locations from 2020 Drilling Completed
Hole
Collar Location Depth Orient
mE mN mRl (m) Az/Dip
MRRD001 756,634 964,787 384 356.82 125/-57
MRRD002 756,484 964,769 390 450.3 126/-56
MRRD003A 756,434 964,672 383 411.3 125/-56
MRRD004 756,460 964,544 380 360.25 127/-55
MRRD005 756,618 964,928 394 381.03 126/-56
MRRD006 756,691 964,752 383 330.2 126/-55
MRRD007 756,802 964,662 379 240.1 125/-55
MDD003 756,596 964,693 381 398.1 125/-56
MDD004 756,337 964,874 393 599.5 128/-56
MDD005 756,316 964,767 392 621.7 127/-57
MDD006 756,374 964,605 381 557.7 127/-56
MDD007 756,452 964,427 377 449.8 126/-57
MDD008 756,535 964,859 393 470.8 130/-56
MDD009 756,520 964,609 381 443.3 129/-57
MDD010 756,435 964,928 394 551.4 126/-57
Coordinate system: WGS84, UTM 29N