Montage Doubles Mineralized Strike and Depth of Koné Deposit; Continues to Deliver on Plan
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Montage Doubles Mineralized Strike and Depth of Koné Deposit; Continues to Deliver on Plan
Vancouver, British Columbia — January 19, 2020 — Montage Gold Corp. (“Montage” or the “Company”)
(TSXV:MAU) is pleased to report the final results of its Phase 1 re source 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 pos ition 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 ev aluating. 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.”
HIGHLIGHTS
• 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:
o MDD014: 200.9m at 0.80g/t including 48.64m grading 1.90g/t
o MDD015B: 330.7m at 0.58g/t including 99.45m grading 0.96g/t
o 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:
o MRAC128: 12m grading 4.15g/t from surface
o 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.
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DETAILS
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.
Figure 1: Drill hole plan view map showing grade-thickness
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.
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Figure 2: Koné deposit cross-section 4800 with expansion drill results highlighted
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.
Hole Section From To Metres Au g/t
MDD002 5000 0.00 221.00 221.00 0.88
MDD003 4900
119.90 311.10 191.20 1.19
including 122.00 159.70 37.70 2.03
MDD005 4800
387.10 573.95 186.75 0.88
including 475.80 540.50 64.70 1.89
MDD006 4700 283.15 556.65 273.50 0.61
MDD009 4800
175.15 441.15 266.00 0.71
including 175.15 281.25 106.10 1.12
MDD014 4800
0.00 200.90 200.90 0.80
including 37.66 86.30 48.64 1.90
MDD015B 4800
93.30 424.00 330.70 0.58
including 167.00 266.45 99.45 0.96
MDD022 4800
305.15 508.30 203.15 0.78
including 394.20 508.30 114.10 1.04
MDD023 5100
55.00 281.00 226.00 0.77
including 152.00 257.00 105.00 1.24
Note: Intercept widths are +90% of true width
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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:
o Potential for simple, large scale, low-cost mining
o Potential for horizontal mining widths of up to 300m
o Potential for low strip ratio
• PEA evaluating opportunity for mining/processing at an elevated cut-off grade in early years:
o 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)
o 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 o f 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 wor k 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
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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.
Figure 3: Petit Yao prospect proximity to Koné deposit (top); Petit Yao soil anomaly
and drill results (bottom)
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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.
Hole From To Metres Au g/t
MRAC116*
22 27 5 3.73
31 34 3 0.74
MRAC117* 20 28 8 2.06
MRAC118* 15 30 15 1.71
MRAC119*
31 34 3 1.09
39 46 7 0.87
MRAC125 29 35 6 1.81
MRAC127 0 16 16 0.59
MRAC128 0 12 12 4.15
MRAC135 32 38 6 2.85
MRAC147 8 16 8 1.23
MRAC180 16 25 9 0.53
MRAC182 28 34 6 0.67
MRAC185 0 19 19 0.78
*previously released drill results (see February 24, 2020 press release)
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.
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ABOUT MONTAGE GOLD CORP.
Montage Gold Corp. (TSXV:MAU) is a Can adian-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 prog rams 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, M Sc, a Qualified Person
pursuant to National Instrument 43 -101. Mr. Stuart is the Chief Executive Office r of the Company, a
Chartered Geologist and a Fellow of the Geological Society of London. Samples used for the results
described herein have been prepare d and analyzed by fire assay using a 50 -gram charge at the Bureau
Veritas facility in Abidjan, Côte d’Iv oire. Field duplicate samples are taken and blanks and standards are
added to every batch submitted.
CONTACT INFORMATION
Hugh Stuart
Chief Executive Officer
Adam Spencer
Executive Vice President, Corporate Development
mobile: +1 (416) 804-9032
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.
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FORWARD LOOKING STATEMENTS
This press r elease 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 resou rce 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, an d 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 go ld 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.