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Montage Gold Corp
Symbol MAU
Shares Issued 105,040,004
Close 2021-11-16 C$ 0.68
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Montage drills six m of 10.8 g/t Au at Kone

2021-11-16 06:56 ET - News Release

Mr. Hugh Stuart reports

MONTAGE GOLD CORP. DRILLS 6M GRADING 10.8G/T NEAR SURFACE 8KM EAST OF KONE

Montage Gold Corp. has released additional near-surface high-grade drill results from the Petit Yao Central target within the Kone gold project (KGP) in Ivory Coast. The company is also pleased to provide an update on the continuing feasibility study and permitting progress at the KGP as well as other exploration activities within the portfolio.

Hugh Stuart, Montage chief executive officer, commented: "We continue to be impressed with the high-grade drill results at Petit Yao Central, which is showing potential as a satellite pit for the KGP. The mineralization sits near surface, predominantly in oxides, is shallow dipping and is open in all directions. This program will enable us to evaluate the resource potential of Petit Yao Central while we plan to test the strike extensions.

"Within the broader Petit Yao North area, recent soil sampling has identified several kilometres of new anomalism for further testing. Given the success at Petit Yao Central, we are highly encouraged by the potential to identify additional satellite pit targets near the Kone deposit.

"The feasibility study for the KGP is progressing well and we expect it to be completed in January, 2022. Thus far, the testwork and studies completed have largely confirmed the assumptions from the preliminary economic assessment (PEA) from May, 2021. We are expecting the maiden mineral reserves estimate to be in line with in-pit material reported from the PEA, with the production profile in early years improving slightly due to grade improvements demonstrated from the August, 2021, indicated mineral resource estimate. Inflation impacts to operating and capital costs have been observed in some areas; however, thus far we are also seeing improvements in other cost areas, driven by optimization work conducted as part of the feasibility study."

Highlights:

  • Multiple shallow high-grade drill results from Petit Yao Central including:
    • MRPYRC030A: six metres grading 10.82 grams per tonne gold from 37 m;
    • MRPYRC039: three m grading 15.51 g/t Au from 28 m;
    • MRPYRC049: four m grading 8.31 g/t Au from 35 m;
    • All results within 50 m of surface in oxide zone;
  • Over four-kilometre strike length of new anomalism to be drill tested in Petit Yao North area:
    • Targets all within 10 km from Kone deposit;
  • Detailed mapping under way on Faradougou exploration licence:
    • 361.5-square-kilometre area previously unexplored; within trucking distance to Kone deposit;
    • Soil sampling program to commence in November, 2021;
  • Feasibility study on KGP progressing well; expected completion in January, 2022;
  • Soil program under way testing district-scale anomaly on Korokaha South.

Details

Petit Yao exploration results

During October, Montage completed a 1,850 m reverse circulation (RC) drilling program at the Petit Yao Central target, eight km east of the Kone deposit. The program was following up 2020 drilling that intersected a shallow-dipping shear zone hosting one or more quartz veins. The current program successfully targeted high-grade oxide mineralization up to a maximum vertical depth of 50 m and over a strike length of 300 m.

Completed assay results from the program are being reported on 21 drill holes with numerous holes intersecting high grades, notably, holes MRPYRC030A, which returned six m grading 10.82 g/t Au from 37 m, and MRPYRC039, which intersected three m grading 15.51 g/t Au. Selected highlight drill holes are presented in the associated table. Complete data from Petit Yao Central drilling reported in this press release are included in another table.

           HIGHLIGHT DRILL RESULTS FROM PETIT YAO CENTRAL

                           Downhole intercept
Hole                From           To       Metres          Grade Au
                     (m)          (m)                          (g/t)

MRPYRC028             46           50            4              5.05
MRPYRC029             13           17            4              1.60
MRPYRC030A            37           43            6             10.82
MRPYRC039             28           31            3             15.51
MRPYRC049             35           39            4              8.31

These results from Petit Yao Central are very encouraging. The key being that with the large-scale, low-cost operation being envisaged at the KGP, exploration no longer needs to find a stand-alone resource and the discovery of satellites as small as 50,000 ounces to 100,000 ounces that can be trucked within the KGP can have a significant impact on the economics of the project. The company sees that potential in Petit Yao Central.

Once the remaining assays are received the company will evaluate Petit Yao Central as a satellite deposit feeding the KGP and will determine what further work needs to be completed to extend the known mineralization, which is open in all directions.

In the Petit Yao North area further soil sampling has defined three new anomalies covering a combined strike length of approximately 4.4 km. Follow-up exploration in the form of deep pitting is in progress and results that are positive will be quickly followed up with shallow RC drilling.

Elsewhere in the Kone exploration licence the exploration team is evaluating new targets most notably the extension of the Petit Yao trend to the south.

Faradougou exploration update

The Faradougou exploration licence (PR748, 361.5-square-kilometre surface area) was awarded in Q3 2021 and has an initial term of four years with up to two renewals, for a total potential term of nine years. There are no records of historic exploration on this licence, and it carries no private third party royalties.

An initial exploration program began in October with detailed geological mapping and is now nearing completion. A soil geochemistry program is set to start in the coming weeks with the aim to identify anomalism for further testing and eventual drilling if warranted. The southernmost border of Faradougou sits approximately 30 km due north of the Kone deposit and the entire licence sits within trucking distance to the planned processing facility at the KGP.

Korokaha South exploration update

The Korokaha gold project comprises two exploration licences and one licence application that sit adjacent to the Tongon gold mine operated by Barrick Gold Corp. A two-phase work program is currently under way on the company's Korokaha South exploration licence.

Phase 1 is a soil program within a regional structure on trend to the southwest of the company's Badenou anomaly (located on the company's Korokaha North exploration licence) and to the northeast of an anomalous trend within Barrick's licence. The program will collect approximately 1,000 samples on an 800 m by 25 m grid along a four km interpreted trend.

Phase 2 includes mapping and grab sampling a series of artisanal workings in close proximity to the Tongon mine access road. This work is a follow-up program on trend from a 500 m strike length soil anomaly identified by Montage during earlier this year, which is coincident with a series of artisanal workings.

KGP feasibility study update

All major work programs are under way in support of the continuing feasibility study for the KGP, with several studies now complete. To this point, all testwork and studies have reaffirmed the assumptions for the KGP used in the PEA released in May, 2021. The feasibility study is expected to be completed in January, 2022.

Feasibility study work program status:

  • Geotechnical study -- completed;
  • Metallurgical testwork -- completed;
  • Pit optimization -- completed;
  • Pit design and scheduling -- nearing completion;
  • Hydrological study -- nearing completion;
  • Tailings disposal study -- 70 per cent completed;
  • Engineering and design -- 20 per cent completed.

About Montage Gold Corp.

Montage is a Canada-based precious metals exploration and development company focused on opportunities in Ivory Coast. The company's flagship property is the Kone gold project, located in northwest Ivory Coast, which currently hosts an indicated mineral resource of 225 million tonnes grading 0.59 g/t for 4.27 million ounces of gold, based on a 0.20 g/t cut-off grade and an inferred mineral resource of 22 million tonnes grading 0.45 g/t for 320,000 ounces of gold, based on a 0.20 g/t cut-off 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 programs at the Kone gold project toward completion of a feasibility study by the end of 2021.

Qualified person statement

The technical contents of this release have been approved by Mr. Stuart, BSc, MSc, a qualified person pursuant to National Instrument 43-101. Mr. Stuart is the chief executive officer of the company, a chartered geologist and a fellow of the Geological Society of London. Samples used for the results described herein have been prepared and analyzed by fire assay using a 50-gram charge at the Bureau Veritas facility in Abidjan, Ivory Coast, and at Intertek in Tarkwa, Ghana. Field duplicate samples are taken and blanks and standards are added to every batch submitted.

DRILL RESULTS FROM PETIT YAO CENTRAL COMPLETED SINCE SEPT. 8, 2021, PRESS RELEASE
  
Hole                                  Downhole intercept grade    
                   Depth         From           To            Metres           Au
                     (m)          (m)          (m)               (m)        (g/t)

MRPYRC025             30                                 no significant intercept
MRPYRC026             45           29           34                 5         2.06
MRPYRC027             55           42           45                 3         1.15
MRPYRC028             78           18           21                 3         1.65
                                   46           50                 4         5.05
MRPYRC029             52            0            3                 3         5.59
                                   13           17                 4         1.60
MRPYRC030A            66            3            6                 3         2.00
                                   37           43                 6        10.82
MRPYRC031             70           44           48                 4         1.84
MRPYRC032             79           47           50                 3         1.24
                                   53           56                 3         0.76
MRPYRC033             66           26           29                 3         1.34
MRPYRC034             30                                 no significant intercept
MRPYRC035             40           16           27                11         1.07
MRPYRC036             60           35           42                 7         2.24
MRPYRC037             87                                 no significant intercept
MRPYRC038             30           10           17                 7         2.95
MRPYRC039             48           28           31                 3        15.51
MRPYRC040             95                                 no significant intercept
MRPYRC041             30                                 no significant intercept
MRPYRC042             66                                 no significant intercept
MRPYRC043             73           37           48                11         0.94
MRPYRC049             58           35           39                 4         8.31
MRPYRC050             48           36           45                 9         0.94
    
Note: Intercepts are 80 to 100 per cent of true width.
 

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