"The completion of the Phase 1 expansion drill campaign marks a significant milestone for Morondo. The program has achieved our goal of confirming and further demonstrating the scale potential and simplicity of the Koné deposit. This puts us in a great position for the delivery of the Inferred Mineral Resource update expected by the end of the month," commented
"In many respects, the Koné orebody is similar to a porphyry gold deposit, with very homogenous mineralization and significant true widths up to 330m. It is an ideal open pit development project that can easily be mined on a large scale at low cost thanks to its very low expected strip ratio, relatively soft rock, and favorable location with respect to access and cheap grid power. In addition, the presence of higher-grade intervals within the wider mineralized envelope gives us the opportunity to process at an elevated cut-off grade during the earlier years of the project and this is something we have been evaluating. We continue to deliver on the plans we set for ourselves at the IPO of Montage and look forward to delivering a robust PEA as the next major milestone for the Company at the end of Q1 2021."
HIGHLIGHTS
- Resource expansion drilling extends known mineralization to depths of up to 450m and expands strike length of the current deposit to over 2km.
- Phase 1 drill campaign confirms average true width of continuous mineralization exceeds 200m over 800m of strike including:
- MDD014: 200.9m at 0.80g/t including 48.64m grading 1.90g/t
- MDD015B: 330.7m at 0.58g/t including 99.45m grading 0.96g/t
- MDD023: 226m at 0.77g/t including 105m grading 1.24g/t
- Inferred Mineral Resource update by end of
January 2021 . - 35,000m Phase 2 drill program underway.
- Exploration drilling outside of Koné to follow up on previous results at Petit Yao target:
- MRAC128: 12m grading 4.15g/t from surface
- MRAC118: 15m grading 1.71g/t from 15m
- Preliminary Economic Assessment ("PEA") on track for end of Q1.
$33M cash and fully funded to advance the MGP to completion of a Feasibility Study by end of 2021.
DETAILS
Phase 1 Resource Expansion Drill Program
The Phase 1 Resource Expansion Drill Program was designed to demonstrate the depth potential of mineralization at the Koné deposit as well as extensions along strike (Figures 1 and 2).
A total of 22,193m of drilling (7,566m of RC and 14,627m of core) has been completed since the
This drilling has now established continuity of mineralization to depths of up to 450m from surface and over a strike length of 2.1km, doubling the mineralized strike and depth extent of the Koné deposit.
The cross-section below (Figure 2), demonstrates the depth extension of mineralization to 450m below surface as well as the significant true width of the deposit and the horizontal mining widths, starting with 250m at surface and widening further to 300m at depth.
Selected results from the Phase 1 expansion drilling are shown in the table below. Complete drill results from the Phase 1 expansion drill program are provided in Appendix 1 of this release.
Hole | Section | From | To | Metres | Au g/t | |
MDD002 | 5000 | 0.00 | 221.00 | 221.00 | 0.88 | |
MDD003 | 4900 | 119.90 | 311.10 | 191.20 | 1.19 | |
including | 122.00 | 159.70 | 37.70 | 2.03 | ||
MDD005 | 4800 | 387.10 | 573.95 | 186.75 | 0.88 | |
including | 475.80 | 540.50 | 64.70 | 1.89 | ||
MDD006 | 4700 | 283.15 | 556.65 | 273.50 | 0.61 | |
MDD009 | 4800 | 175.15 | 441.15 | 266.00 | 0.71 | |
including | 175.15 | 281.25 | 106.10 | 1.12 | ||
MDD014 | 4800 | 0.00 | 200.90 | 200.90 | 0.80 | |
including | 37.66 | 86.30 | 48.64 | 1.90 | ||
MDD015B | 4800 | 93.30 | 424.00 | 330.70 | 0.58 | |
including | 167.00 | 266.45 | 99.45 | 0.96 | ||
MDD022 | 4800 | 305.15 | 508.30 | 203.15 | 0.78 | |
including | 394.20 | 508.30 | 114.10 | 1.04 | ||
MDD023 | 5100 | 55.00 | 281.00 | 226.00 | 0.77 | |
including | 152.00 | 257.00 | 105.00 | 1.24 |
Note: Intercept widths are +90% of true width |
The key features of the Koné deposit that Montage believes make it an ideal development project are the simplicity of the deposit and the consistency of mineralization over extremely wide widths.
- Average true width of continuous mineralization exceeds 200m over 800m of strike:
- Potential for simple, large scale, low-cost mining
- Potential for horizontal mining widths of up to 300m
- Potential for low strip ratio
- PEA evaluating opportunity for mining/processing at an elevated cut-off grade in early years:
- Discrete higher-grade intervals within the broader mineralized envelope (see Figure 2: 99.45m at 0.96g/t and 106.1m grading 1.12g/t within section 4800)
- Potential positive impact on production levels, cost profile and capital payback
Inferred Mineral Resource Update
With the completion of the Phase 1 Expansion Drill Program, an updated Inferred Mineral Resource is now being estimated by
The
As part of the ongoing PEA, Montage has been evaluating various cost parameters for the project and the associated scale benefits given the nature of the Koné deposit and as such, the Company expects to utilize a cut-off grade of less than 0.50g/t for reporting the upcoming resource calculation to more closely reflect the anticipated mining cut-off grade that may be used during the potential mining of the deposit.
Phase 2 Drill Program Underway
Montage commenced a 35,000m infill drilling program at the MGP on
Preliminary Economic Assessment Progress
The PEA work programs continue to advance with the status of various programs and testing are as follows:
- Hydrological drilling — completed
- Geotechnical drilling — completed
- Mining throughput study — completed
- Pit optimizations/design and mine scheduling — awaiting resource
- Metallurgical test work — 70% complete
- Engineering and design work — 40% completed
- Tailings and water storage design — 40% complete
- Environmental Impact Assessment — 10% complete
The PEA results remain on track for delivery late in Q1 2021.
Petit Yao Exploration Program — Potential for High-Grade Satellite Feed
The Phase 2 Program will also include the further testing of off-resource targets, in particular at the Petit Yao prospect where shallow reconnaissance drilling in 2019 intersected 12m grading 4.15g/t from surface and 15m grading 1.71g/t from 15m.
Petit Yao hosts a large +100ppb soil anomaly over an area of approximately 2km2, 8km east of the Koné deposit. In late 2019 and early 2020, the Company completed a first pass program of 2,814m of shallow (30m vertical) drilling which will now be followed up.
Hole | From | To | Metres | Au g/t |
MRAC116* | 22 | 27 | 5 | 3.73 |
31 | 34 | 3 | 0.74 | |
MRAC117* | 20 | 28 | 8 | 2.06 |
MRAC118* | 15 | 30 | 15 | 1.71 |
MRAC119* | 31 | 34 | 3 | 1.09 |
39 | 46 | 7 | 0.87 | |
MRAC125 | 29 | 35 | 6 | 1.81 |
MRAC127 | 0 | 16 | 16 | 0.59 |
MRAC128 | 0 | 12 | 12 | 4.15 |
MRAC135 | 32 | 38 | 6 | 2.85 |
MRAC147 | 8 | 16 | 8 | 1.23 |
MRAC180 | 16 | 25 | 9 | 0.53 |
MRAC182 | 28 | 34 | 6 | 0.67 |
MRAC185 | 0 | 19 | 19 | 0.78 |
*previously released drill results (see |
A further program of shallow aircore drilling is planned for Q1 combined with a short trenching program to define targets for deeper RC drilling early in Q2. Further reconnaissance exploration is also continuing across the permit area.
Operating Under Budget; Business Plan Fully Funded for 2021
Montage completed the Phase 1 drill program as scheduled and under budget and remains fully funded for its business plan through 2021. This includes: Phase 2 drill program (35,000m); PEA delivery by end of Q1 2021; an Indicated Mineral Resource Estimate by the end of Q2 2021; and a Feasibility Study by the end of 2021.
As of
ABOUT
QUALIFIED PERSONS STATEMENT
The Inferred Mineral Resource was estimated using an optimal pit shell generated for constraining Inferred Mineral Resources with dimensions of approximately 1,100 m by 620 m, with a maximum depth of around 260 m, and applying a gold price of
The technical contents of this release have been approved by
Neither the
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the Company's resource properties, and the Company's plans, focus and objectives. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties related to fluctuations in gold and other commodity prices, uncertainties inherent in the exploration of mineral properties, the impact and progression of the COVID-19 pandemic and other risk factors set forth in the Company's final prospectus under the heading "Risk Factors". The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
APPENDIX 1: Core drilling Results for holes drilled post the
Note: | Intervals in bold text represent the full mineralized width of the Koné deposit |
Intercepts are +90% of true width | |
Grid: | |
Holes denoted with * have been previously released. |
Hole | Easting | Northing | RL | Dip | Depth | From | To | Metres | Au g/t | |
MDD001* | 756,874 | 964,872 | 388 | 119.0 | -55.0 | 243.0 | 0.00 | 168.00 | 168.00 | 0.81 |
0.00 | 8.00 | 8.00 | 0.49 | |||||||
17.00 | 43.00 | 26.00 | 0.92 | |||||||
51.00 | 60.00 | 9.00 | 2.01 | |||||||
63.00 | 109.00 | 46.00 | 1.17 | |||||||
134.00 | 148.00 | 14.00 | 0.72 | |||||||
160.00 | 168.00 | 8.00 | 1.85 | |||||||
MDD002* | 756,753 | 964,696 | 378 | 120.5 | -55.0 | 284.8 | 0.00 | 221.00 | 221.00 | 0.88 |
0.00 | 24.00 | 24.00 | 1.20 | |||||||
30.00 | 82.00 | 52.00 | 1.07 | |||||||
90.00 | 139.00 | 49.00 | 0.68 | |||||||
168.80 | 221.00 | 52.20 | 1.28 | |||||||
MRRD001* | 756,634 | 964,787 | 384 | 124.8 | -57.0 | 356.9 | 134.00 | 315.00 | 181.00 | 0.77 |
134.00 | 150.00 | 16.00 | 0.98 | |||||||
198.35 | 298.60 | 100.25 | 1.05 | |||||||
MRRD002* | 756,484 | 964,769 | 390 | 125.4 | -56.0 | 450.3 | 244.35 | 426.16 | 181.81 | 0.81 |
244.35 | 271.00 | 26.65 | 0.76 | |||||||
334.83 | 426.15 | 91.32 | 1.58 | |||||||
MRRD003A* | 756,434 | 964,672 | 383 | 124.4 | -55.8 | 411.3 | 243.00 | 411.30 | 168.30 | 0.60 |
243.00 | 290.20 | 47.20 | 0.95 | |||||||
346.34 | 362.10 | 15.76 | 0.79 | |||||||
369.35 | 386.00 | 16.65 | 1.27 | |||||||
MRRD004* | 756,460 | 964,544 | 380 | 126.5 | -55.1 | 360.3 | 175.60 | 360.25 | 184.65 | 0.57 |
175.60 | 182.10 | 6.50 | 1.00 | |||||||
215.00 | 230.00 | 15.00 | 0.78 | |||||||
247.00 | 261.80 | 14.80 | 0.93 | |||||||
283.00 | 294.00 | 11.00 | 0.94 | |||||||
310.70 | 348.00 | 37.30 | 1.04 | |||||||
MRRD005* | 756,618 | 964,928 | 394 | 126.4 | -55.6 | 381.0 | 144.00 | 354.00 | 210.00 | 0.54 |
259.60 | 284.70 | 25.10 | 1.63 | |||||||
295.00 | 315.00 | 20.00 | 0.73 | |||||||
348.55 | 354.00 | 5.45 | 0.65 | |||||||
MRRD006* | 756,691 | 964,752 | 383 | 126.4 | -55.4 | 330.2 | 86.10 | 241.00 | 154.90 | 0.77 |
86.10 | 126.00 | 39.90 | 0.90 | |||||||
166.00 | 241.00 | 75.00 | 0.91 | |||||||
308.20 | 321.00 | 12.80 | 0.93 | |||||||
MRRD007* | 756,802 | 964,662 | 379 | 125.8 | -55.1 | 240.1 | 2.00 | 118.00 | 116.00 | 0.76 |
2.00 | 28.00 | 26.00 | 1.35 | |||||||
36.00 | 48.00 | 12.00 | 0.98 | |||||||
56.00 | 64.00 | 8.00 | 0.75 | |||||||
73.00 | 84.00 | 11.00 | 1.09 | |||||||
107.00 | 118.00 | 11.00 | 0.78 | |||||||
MDD003* | 756,596 | 964,693 | 381 | 125.0 | -56.0 | 398.1 | 119.90 | 311.10 | 191.20 | 1.19 |
122.00 | 159.70 | 37.70 | 2.03 | |||||||
167.40 | 193.00 | 25.60 | 0.99 | |||||||
203.00 | 259.50 | 56.50 | 0.95 | |||||||
270.00 | 304.60 | 34.60 | 1.79 | |||||||
MDD004* | 756,337 | 964,874 | 393 | 128.3 | -56.0 | 599.5 | 366.65 | 569.60 | 202.95 | 0.46 |
470.65 | 498.65 | 28.00 | 1.51 | |||||||
522.75 | 531.55 | 8.80 | 0.93 | |||||||
MDD005* | 756,316 | 964,767 | 392 | 127.2 | -56.7 | 621.7 | 387.10 | 573.95 | 186.75 | 0.88 |
387.10 | 417.65 | 30.55 | 0.72 | |||||||
475.80 | 540.50 | 64.70 | 1.89 | |||||||
556.40 | 568.80 | 12.40 | 0.54 | |||||||
MDD006* | 756,374 | 964,605 | 381 | 126.7 | -55.7 | 557.7 | 283.15 | 556.65 | 273.50 | 0.61 |
283.15 | 359.00 | 75.85 | 0.84 | |||||||
385.00 | 438.25 | 53.25 | 0.94 | |||||||
493.25 | 524.00 | 30.75 | 0.59 | |||||||
MDD007* | 756,452 | 964,427 | 377 | 126.3 | -57.3 | 449.8 | 199.75 | 250.15 | 50.40 | 0.67 |
199.75 | 215.70 | 15.95 | 0.67 | |||||||
231.40 | 247.55 | 16.15 | 0.74 | |||||||
MDD008* | 756,535 | 964,859 | 393 | 129.5 | -56.3 | 470.8 | 208.50 | 405.90 | 197.40 | 0.73 |
255.20 | 266.70 | 11.50 | 0.91 | |||||||
288.40 | 405.90 | 117.50 | 1.00 | |||||||
MDD009* | 756,520 | 964,609 | 381 | 129.0 | -57.0 | 443.3 | 175.15 | 441.15 | 266.00 | 0.71 |
175.15 | 281.25 | 106.10 | 1.12 | |||||||
288.45 | 319.05 | 30.60 | 0.64 | |||||||
413.20 | 432.65 | 19.45 | 0.72 | |||||||
MDD010* | 756,435 | 964,928 | 394 | 126.2 | -57.1 | 551.4 | 360.00 | 433.30 | 73.30 | 0.43 |
360.00 | 368.55 | 8.55 | 1.03 | |||||||
382.60 | 391.15 | 8.55 | 0.57 | |||||||
410.65 | 423.00 | 12.35 | 0.53 | |||||||
MDD011 | 756,518 | 964,992 | 393 | 125.4 | -57.7 | 455.4 | N/A | |||
290.00 | 299.00 | 9.00 | 0.75 | |||||||
319.95 | 340.00 | 20.05 | 0.82 | |||||||
MDD012 | 756,968 | 964,803 | 383 | 125.6 | -55.0 | 89.3 | N/A | |||
13.00 | 41.50 | 28.50 | 1.70 | |||||||
53.85 | 59.55 | 5.70 | 1.15 | |||||||
62.83 | 75.10 | 12.27 | 3.96 | |||||||
MDD013 | 756,801 | 964,664 | 378 | 125.7 | -55.0 | 75.8 | N/A | |||
0.00 | 30.00 | 30.00 | 1.26 | |||||||
33.86 | 63.80 | 29.94 | 0.80 | |||||||
MDD014 | 756,684 | 964,508 | 376 | 127.7 | -57.5 | 440.6 | 0.00 | 200.90 | 200.90 | 0.80 |
10.00 | 30.53 | 20.53 | 0.72 | |||||||
37.66 | 86.30 | 48.64 | 1.90 | |||||||
131.00 | 138.00 | 7.00 | 0.81 | |||||||
163.00 | 175.30 | 12.30 | 1.38 | |||||||
MDD015B | 756,577 | 964,576 | 379 | 126.4 | -57.4 | 437.7 | 93.30 | 424.00 | 330.70 | 0.58 |
93.30 | 109.00 | 15.70 | 0.52 | |||||||
167.00 | 266.45 | 99.45 | 0.96 | |||||||
372.00 | 386.05 | 14.05 | 0.74 | |||||||
MDD016 | 756,660 | 965,017 | 395 | 128.3 | -56.8 | 404.3 | 162.80 | 282.00 | 119.20 | 0.36 |
162.80 | 177.00 | 14.20 | 1.12 | |||||||
264.00 | 282.00 | 18.00 | 0.58 | |||||||
MDD017 | 756,485 | 964,893 | 393 | 126.4 | -58.2 | 491.7 | 241.00 | 448.00 | 207.00 | 0.56 |
241.00 | 270.00 | 29.00 | 0.40 | |||||||
305.00 | 324.45 | 19.45 | 0.57 | |||||||
356.50 | 398.00 | 41.50 | 0.77 | |||||||
410.20 | 428.00 | 17.80 | 0.85 | |||||||
434.90 | 448.00 | 13.10 | 2.88 | |||||||
MDD018 | 756,347 | 964,493 | 377 | 125.6 | -58.0 | 476.8 | 298.00 | 425.15 | 127.15 | 0.47 |
298.00 | 324.00 | 26.00 | 0.61 | |||||||
366.10 | 393.45 | 27.35 | 0.73 | |||||||
404.25 | 425.15 | 20.90 | 0.58 | |||||||
MDD019 | 756,503 | 964,390 | 375 | 128.1 | -58.2 | 346.2 | 101.90 | 327.00 | 225.10 | 0.27 |
58.00 | 66.00 | 8.00 | 1.52 | |||||||
88.00 | 103.00 | 15.00 | 0.74 | |||||||
149.00 | 156.40 | 7.40 | 0.87 | |||||||
MDD020 | 756,390 | 964,346 | 374 | 127.0 | -57.6 | 344.6 | 176.00 | 328.05 | 152.05 | 0.30 |
210.00 | 228.00 | 18.00 | 0.59 | |||||||
MDD021 | 756,320 | 964,398 | 375 | 126.8 | -57.7 | 482.7 | No Significant Intercept | |||
MDD022 | 756,387 | 964,710 | 385 | 128.6 | -59.3 | 524.7 | 305.15 | 508.30 | 203.15 | 0.78 |
326.00 | 342.70 | 16.70 | 0.95 | |||||||
394.20 | 508.30 | 114.10 | 1.04 | |||||||
MDD023 | 756,712 | 964,855 | 387 | 128.7 | -56.5 | 338.7 | 55.00 | 281.00 | 226.00 | 0.77 |
70.00 | 90.00 | 20.00 | 0.84 | |||||||
109.00 | 133.15 | 24.15 | 0.48 | |||||||
152.00 | 257.00 | 105.00 | 1.24 | |||||||
MDD024 | 756,767 | 964,921 | 392 | 128.8 | -59.7 | 299.6 | 60.25 | 241.00 | 180.75 | 0.73 |
107.00 | 211.00 | 104.00 | 0.92 | |||||||
229.00 | 241.00 | 12.00 | 1.39 | |||||||
MDD025 | 756,571 | 964,830 | 393 | 128.0 | -56.1 | 416.8 | 178.00 | 376.00 | 198.00 | 0.72 |
178.00 | 205.10 | 27.10 | 0.60 | |||||||
277.00 | 305.00 | 28.00 | 1.49 | |||||||
313.05 | 376.00 | 62.95 | 0.88 | |||||||
MDD026 | 756,439 | 964,312 | 374 | 127.0 | -57.9 | 305.7 | 94.15 | 234.00 | 139.85 | 0.30 |
128.00 | 191.00 | 63.00 | 0.36 | |||||||
MDD027 | 756,490 | 964,278 | 372 | 126.9 | -58.9 | 270.8 | 60.00 | 183.70 | 123.70 | 0.49 |
60.00 | 72.00 | 12.00 | 0.68 | |||||||
88.25 | 183.70 | 95.45 | 0.53 | |||||||
MDD028 | 756,269 | 964,540 | 380 | 126.8 | -59.2 | 560.8 | 315.85 | 512.00 | 196.15 | 0.37 |
346.00 | 358.00 | 12.00 | 0.57 | |||||||
375.25 | 387.00 | 11.75 | 0.55 | |||||||
434.25 | 512.00 | 77.75 | 0.42 | |||||||
MDD029 | 756,200 | 964,604 | 382 | 128.7 | -58.1 | 599.7 | 399.00 | 599.70 | 200.70 | 0.32 |
399.00 | 418.00 | 19.00 | 0.63 | |||||||
464.45 | 509.00 | 44.55 | 0.72 | |||||||
MDD030 | 756,318 | 964,638 | 385 | 128.1 | -58.5 | 551.7 | 346.00 | 536.00 | 190.00 | 0.60 |
368.00 | 420.90 | 52.90 | 1.03 | |||||||
454.45 | 509.00 | 54.55 | 0.58 | |||||||
MDD031 | 756,724 | 965,084 | 394 | 125.5 | -70.6 | 221.7 | 49.35 | 221.70 | 172.35 | 0.32 |
121.00 | 141.00 | 20.00 | 0.91 | |||||||
MDD032 | 756,610 | 965,056 | 396 | 126.8 | -57.9 | 362.8 | 129.25 | 353.00 | 223.75 | 0.23 |
196.00 | 223.50 | 27.50 | 0.41 |
SOURCE
© Canada Newswire, source