Montage Gold Corp. (TSXV: MAU, OTCQX: MAUTF) has officially launched the construction of its Koné gold project in Côte d’Ivoire, with the first gold pour scheduled for the second quarter of 2027. The announcement was made following a groundbreaking ceremony attended by government officials and local community representatives, underscoring the project’s significance for the region’s social and economic development.
Project Progress and Construction Milestones
Montage Gold is moving forward with the rapid development of the Koné project, with initial construction activities already underway. The company is preparing for major construction works to begin in the coming weeks, contingent upon the arrival of additional construction equipment. The project is fully funded with a significant liquidity buffer, and Montage anticipates upfront capital expenditures of US$835 million, with over US$900 million in available liquidity.
The engineering, procurement, and construction management (EPCM) contract has been awarded to Lycopodium Minerals Pty Ltd, which has been involved in the project since 2018. Lycopodium was responsible for the project’s definitive feasibility study (DFS) and updated feasibility study (UFS) published in January 2024. The collaboration has led to the optimization of key design elements, enhancing the efficiency of the crushing and milling circuit.
Montage has assembled a highly experienced in-house construction team, now approximately 350 strong, and has also placed strategic orders for long-lead items to mitigate potential construction risks and secure price stability.
Comments from Leadership
Martino De Ciccio, CEO of Montage, expressed his satisfaction with the progress, saying, “The commencement of construction at Koné marks a key milestone in our journey toward becoming a leading African gold producer. We’re grateful for the strong partnerships we’ve built with local stakeholders, investors, and contractors, which have enabled us to move forward swiftly. We are committed to creating value for all our stakeholders while investing in the local community through education, health, and economic initiatives.”
Peder Olsen, President and Chief Development Officer of Montage, highlighted the importance of strategic planning, noting, “The optimization of our key design parameters and the early procurement of long-lead items will allow us to stay on track with our construction schedule. We are particularly excited to begin construction at the optimal time, following the rainy season, and look forward to meeting our goals.”
Groundbreaking Ceremony Celebrates Local Support
The groundbreaking ceremony, held earlier today, was attended by more than 2,000 individuals, including key government officials and local community members. Mamadou Sangafowa-Coulibaly, Côte d’Ivoire’s Minister of Mines, Petroleum, and Energy, reiterated the government’s strong support for the mining sector and specifically for the Koné project, emphasizing its potential to bring substantial social and economic benefits to the region.
Lycopodium’s involvement in the Koné project spans several years, with a successful track record in West Africa, particularly in Côte d’Ivoire. The firm has recently completed the construction of Fortuna Mining’s Séguéla project and Endeavour Mining’s Lafigue mine, both on time and on budget.
Early Works and Community Initiatives
Construction work has already begun with the completion of several key early works milestones. Notably, over 138,000 work hours have been completed without any lost time incidents (LTIs), reflecting the commitment to safety and efficiency. Montage is also focusing on local content, partnering with the government-accredited Lycée Technique de Mankono to offer vocational training programs to individuals from nearby communities. The first group of 80 trainees has completed their courses and started employment with Montage.
Additionally, the company has launched literacy and numeracy programs for over 500 participants from nearby villages, empowering individuals with essential skills for future employment. Land compensation and resettlement activities are progressing smoothly, with housing construction for displaced communities set to begin in late Q1 2025.
Project Infrastructure and Sustainability
The Koné project will source water from the nearby Marahoué River, with water abstraction authorizations already granted. Earthworks for the access road and major work areas are ongoing, and the construction of a permanent camp is progressing, with the first 40-man accommodation blocks nearing completion. Montage is also focusing on developing an Ivorian supply chain, sourcing key project materials such as fuel, cement, and food locally.
Power for the project will be supplied by Côte d’Ivoire’s national grid, with a new 225kV transmission line connecting to existing infrastructure. The Ministry of Water and Forests has granted all necessary permissions for water access, and power system studies with the national utility, Compagnie Ivoirienne d’Electricité (CIE), confirm the availability of reliable and sufficient electricity for the Koné project.
As Montage Gold continues to advance the construction of the Koné project, the company remains focused on delivering long-term value for all stakeholders, while contributing to the sustainable development of local communities in Côte d’Ivoire.
About Montage Gold Corp.
Montage Gold Corp. is a gold exploration and development company focused on advancing its Koné project in Côte d’Ivoire. The company is committed to creating value for its stakeholders through the responsible development of its assets and the sustainable growth of its operations.
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