Exploration
Discovery target of 1Moz at 50% higher grade
The ongoing exploration programme results validate management’s conviction that significant potential exists to add further higher-grade satellites, with the aim of enhancing the profile of the Koné project by slotting these discoveries early in the mine plan. In line with its commitment to accountability and transparency, on October 7, 2024, Montage published an aggressive target of discovering of at least 1 million ounces of Measured and Indicated Resources at a grade of over 1 g/t Au and 50% higher than the current grade of the Koné deposit1, to be achieved before the commencement of production.
Achieving the set exploration target would represent a significant return on the exploration investment and aligns with the Company’s strategic objective of boosting production from the commencement of production, while maintaining an annual production of at least 300koz for more than 10 years. As shown in Figure 1 below, the objective is to replicate the exploration success that resulted in the addition of the Gbongogo Main higher grade satellite deposit which is to be blended with the Koné deposit ore feed over the first three years of operations, resulting in an average gold production of 349,000 ounces per year during this period given that the Gbongogo Main deposit reserve grade is approximately 95% higher than that of the Koné deposit ore feed over the life of mine1.
Current production profile1
1Source: Updated Feasibility Study press release dated January 16, 2024 available on Montage’s website and on SEDAR+. See “Technical Disclosure”.
Overview of Exploration Targets
Based on the new drill data received and the below described exhaustive review of all available historical geological data, the number of identified exploration targets has increased from 35, as previously reported in July 2024, to 52 targets across 6 mineralised trends in addition to the Koné deposit, as shown in the figure below.
In total, 26 exploration targets are located within the permitted mining area within 3 major trends (Gbongogo-Korotou Trend, Lokolo Trend and Bafretou-Niondje Trend) which are located near the planned haul road, and host potential for higher grade discoveries. On the exploration permits, a further 26 targets have been identified across 4 major trends (Gbongogo-Korotou Trend, Sissédougou Trend, Yere Trend and TZ4 Trend), which also hosts the potential for higher grade mineralisation. Exploration efforts are focused on both the mining permitted area, due to its potential immediate benefits, as well as on the exploration permit to the north given the lead time required from discovery to permitting. Management anticipates that a trucking distance of 75km would result in an impact of approximately 0.2 g/t Au on the cut-off grade, thereby supporting its strategy of targeting over 1 g/t Au discoveries which have the potential to displace 0.7 g/t Au material sourced from the Koné deposit.
Map with 2024 drill results highlights
Strategic Exploration Methodology
The Company’s exploration strategy utilises a well-established and tested methodology based on a systematic approach to prioritise exploration efforts by weighing geological prospectivity against potential operational and economic parameters along with strategic considerations.
As a starting point, a comprehensive review of all available geological data was conducted by analysing geological maps, cross sections, structural data, surface geology, geochemistry, geophysics, regolith mapping, alteration profiles, drilling data, cores, analysis of artisanal mining activity, outcrops, and other survey data. This data, supplemented by the additional data gathered during the first drilling programme of 2024, has resulted in the identification of 52 exploration targets across 6 mineralised trends, which represents a significant increase over the 35 exploration targets reported in July 2024. This process of assessing the potential of each target is a continuous and reiterative process based on the availability of new geological data.
Given the large number of identified targets, and in order to align exploration efforts to corporate strategic objectives, targets were then screened and ranked based not only on geological potential (such as potential grade and potential size) but also based on potential operational and economic parameters (such as potential metallurgical properties, potential strip ratio, distance to the envisaged Koné processing plant, etc). Lastly, a short, medium and long-term workplan was developed based on the ranking of the targets and other strategic considerations, such as expected lead-time from discovery to permitting. As a result of this exercise, a workplan has been developed to achieve the short-term discovery target.
The figure below illustrates the significant progress recently made to advance targets from early-stage target to resource and pre-resource definition stage. The approach undertaken is to systematically drill test best selected targets to define starter resources and validate their high-grade content before undertaking larger step-out drilling campaigns.
Koné Gold Project Exploration Targets
Ongoing Exploration Programme
A total of 81,815 meters were drilled in 2024, amounting to US$13 million, under the leadership of the new management team, with the goal of delineating resources at selected advanced targets, in addition to continuing to drill test and progress other targets. Given the extensive land package encompassing over 52 identified targets, the approach undertaken is to systematically drill test best selected targets to confirm their potential and define starter resources to validate their high-grade content before undertaking larger step-out drilling campaigns. Consequently, 18 targets were drill tested last year, which successfully delineated starter resources for 7 higher grade satellite deposits, while another 6 targets have advanced to the preresource definition stage and are currently being followed up.
A subsequent 90,000-meter drill programme, amounting to US$14 million, was launched in early 2025 with the goal of continuing to delineate and test higher-grade satellites, detailed as follows:
- 25,000 meters for resource extension, conversion and geotechnical drilling on known deposits
- 20,000 meters of infill drilling on new advanced targets to delineate additional maiden resources
- 45,000 meters of exploration drilling to test and generate new targets
For further information on the KGP exploration programmes, including the latest results, please refer to Montage Gold’s latest news updated.