Montage boosts Koné gold grade by 20% in Africa

Montage Gold (TSX: MAU; US-OTC: MAUTF) has lifted the resource and grade at Koné in Côte d’Ivoire, one of West Africa’s largest gold projects, as it prepares for a first pour this year.

Measured and indicated resources at the Koné deposit increased by 142,000 oz. to 4.63 million oz. grading 0.69 grams gold per tonne, a 21% improvement. The Gbongogo Main deposit saw indicated resources jump roughly 40% to 783,000 oz. grading 1.51 grams gold per tonne with a modest grade gain.

“Montage continues to deliver steady resource growth with increase in grade,” BMO mining analyst Raj Ray said in a note on Monday. “The update reflects extensive 2025 drilling and improved modelling, which further increases confidence in the resource.”

The gains matter as Montage, part of the Lundin Mining (TSX: LUN) group of companies, advances construction at Koné. The company expects the larger, higher-confidence resource to support mine planning. The fully-funded project is targeting annual output of about 300,000 oz. over the first half of a 16-year life, according to a 2024 feasibility study. With bullion prices near record levels, investors remain focused on the sector.

Tighter drilling

Shares in Montage rose 4% on Monday morning in Toronto to $14.98 apiece, valuing the company at $5.27 billion (US$3.78 billion). They have ranged from $3 to $17.02 over the past 52 weeks.

The resource improvements stem from a 174,000-metre drilling campaign in 2025, with tighter 12.5-metre drill spacing helping delineate higher-grade shoots and better define structural controls, the company said. The drilling helped Montage expand the resource in November at the site about 350 km northwest of Yamoussoukro, the country’s capital.

“Construction remains on-budget and ahead of schedule,” CEO Martino De Ciccio said in Monday’s release. “We are also pleased to be executing against our goal of discovering high grade satellites with the aim of supplementing production from the onset.” 

In the coming weeks, Montage plans to release updated resource estimates for satellite deposits Gbongogo South, Koban North, ANV, Yere North, Lokolo Main, Sena and Diouma North.

Initial resources from newer discoveries Petit Yao and Soman One and Two are targeted through 2026. A further 90,000 metres of drilling is underway, alongside an updated life-of-mine plan due later this year.

Funding

Vancouver-based has closed its acquisition of African Gold and plans to achieve first gold at Koné in this year’s fourth quarter.

In 2024, Montage secured US$825 million ($1.15 billion) in financing for the project which has an initial capital cost of $545 million, according to that year’s feasibility study.

Wheaton Precious Metals (TSX, NYSE, LSE: WPN) agreed to pay US$625 million in cash to acquire 19.5% of payable gold production from Koné, up to 400,000 ounces. The stream falls to 10.8% until another 130,000 oz. has been delivered, then 5.4% for the mine’s life. The sum is to be paid in four equal instalments during construction. 

Additionally, the company is providing Montage a US$75-million secured debt facility for project costs.

Chinese miner Zijin, which holds 9.9% in Montage, is funding the company with US$125 million, comprised of a US$50-million loan facility over nine years and a US$75-million fully redeemable subordinated gold stream.