Montage pours first gold at Koné ahead of schedule

Montage Gold Corp. (TSX: MAU; US-OTC: MAUTF) has poured first gold at its flagship Koné mine in Côte d’Ivoire, beating an accelerated schedule as the developer shifts into production.

The Sept. 26 pour yielded about 1,140 oz. of gold after more than 400,000 tonnes of ore were processed through the oxide circuit since Sept. 8. Construction began in December 2024, with Montage initially targeting first gold in the second quarter of 2027 before moving that timetable forward to late 2026.

“We view this a positive for Montage shares, as the company has reached first gold pour substantially de-risking the project from pre-production levels,” Scotia Capital analyst Ovais Habib said. “We look forward to Montage advancing its ramp-up plan and commencement of mining at the higher-grade Gbongogo Main pit later this year.”

The oxide circuit is expected to reach commercial production by year-end, while construction of the hard-rock comminution circuit remains on budget and on schedule for completion in the second quarter of 2027.

Faster ramp-up

SCP Resource Finance raised its fourth-quarter production forecast to 52,000 oz. from 35,000 oz. because of the faster ramp-up. It also extended its modelled Koné mine life by three years, adding about 605,000 oz. of inventory, and lifted its price target to C$21.70 from C$19.25 while maintaining a buy rating.

National Bank Financial analyst Mohamed Sidibé called the pour an important execution milestone. The bank models 36,000 oz. of attributable production this year and 345,000 oz. in 2027, with Koné accounting for about 67% of its corporate net asset value. National Bank rates Montage outperform with a C$24 target.

Koné has an estimated 16-year mine life and is designed to produce more than 300,000 oz. of gold annually during its early years. SCP estimates production at about 335,000 oz. a year during years one through eight, with potential upside from exploration and higher throughput.

Shares in Montage were down 2.2% to C$19.45 ($13.73) apiece Monday afternoon in Toronto, valuing the company at about C$7.8 billion ($5.5 billion). Wider markets were also lower amid inflation concerns and rising bond yields.

Local workforce

Construction of Koné has created approximately 3,600 jobs, more than 95% of them held by Côte d’Ivoire nationals, following training programs begun before construction. Montage’s owner-mining model has also allowed construction workers to move into the operating team.

Once fully ramped up, the mine is expected to employ about 1,500 people permanently.

“Koné is now the ninth operating gold mine in Côte d’Ivoire and poised to deliver strong benefits for all stakeholders,” Montage CEO Martino De Ciccio said. “We look forward to continuing to rapidly grow our business by advancing our development pipeline, with notably the Didievi project in Côte d’Ivoire which is poised to become our next development asset.”

Montage is pursuing an extensive exploration campaign aimed at adding higher-grade satellite deposits that could supplement production at Koné. Its 2026 program includes 130,000 metres of drilling, taking total drilling since the 2024 feasibility study to about 380,000 metres.

New resource

A June update increased Koné’s measured and indicated resources by 1.42 million oz. to 6.29 million oz., with the grade rising 27% to 0.80 gram gold per tonne compared with the resource underpinning the 2024 feasibility study. Inferred resources rose by 1.62 million oz. to 2.03 million oz., with the grade increasing 36% to 0.68 gram gold.

Mining at the higher-grade Gbongogo Main satellite deposit is expected to begin late this year, with other satellites following during 2027. SCP said conversion of inferred satellite ounces could provide further grade upside and expects an updated Koné mine plan and resource estimate by year-end.

Beyond Koné, Montage is advancing Didievi as its likely next development asset and has also reported shallow gold mineralization at Wendé. SCP expects a maiden Wendé resource by year-end and has brought forward its modelled start of production at Didievi by six months to the first quarter of 2029.