2022 Feasibility Study
Please note that in February 2022, Montage released the results of a Definitive Feasibility Study on the Koné deposit on a standalone basis. The DFS was completed prior to the acquisition of the Mankono-Sissédougou Joint Venture from Barrick and Endeavour and does not include the Gbongogo Main satellite deposit.
As of H2 2023, an updated DFS is being prepared that will incorporate material from the Gbongogo Main deposit which is planned to be mined and trucked approximately 35km to the mill which will be located adjacent to the Koné deposit. The addition of higher-grade material from Gbongogo Main is expected to have a significant positive impact on production levels and economics of the KGP.
Summary financial and operating metrics from the 2022 DFS are presented below.
| Gold Price ($/oz) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Units | $1,400 | $1,500 | $1,600 | $1,650* | $1,700 | $1,800 | $2,000 |
| NPV5% | $M | $417 | $582 | $746 | $799 | $881 | $1,043 | $1,367 |
| IRR | % | 21.8% | 28.3% | 34.8% | 37.0% | 40.3% | 47.0% | 60.9% |
| Total Cash Cost1 | $/payable oz |
$825 | $831 | $838 | $858 | $861 | $869 | $884 |
| AISC1 | $/payable oz |
$920 | $927 | $933 | $953 | $957 | $964 | $979 |
| Payback | years | 3.8 | 3.1 | 2.7 | 2.5 | 2.4 | 2.1 | 1.8 |
| Metrics | Units | DFS |
|---|---|---|
| Pit Optimization Gold Price Assumption | $/oz | $1,250 |
| Financial Model Base Case Gold Price | $/oz | $1,600 |
| Life of Mine | years | 14.8 |
| Total Mineralized Material Mined | Mt | 161.1 |
| Contained Gold | Moz | 3.42 |
| Strip Ratio | w:o | 0.90:1 |
| Annual Mining Rate | Mtpa | 35.0 |
| Annual Milling Rate (Mill Throughput) | Mtpa | 11.0 |
| Average Head Grade, first 3 years | Au g/t | 0.93 |
| Average Head Grade, first 9 Years | Au g/t | 0.82 |
| Average Head Grade, LOM | Au g/t | 0.66 |
| Processing Recovery, first 3 Years | % | 91.1% |
| Processing Recovery, first 9 Years | % | 90.2% |
| Processing Recovery, LOM | % | 89.3% |
| Total Gold Production, LOM | Moz | 3.06 |
| Average Gold Production, first 3 years | koz/yr | 285 |
| Average Gold Production, first 9 years | koz/yr | 257 |
| Average Gold Production, LOM | koz/yr | 207 |
| Mining Cost Per Tonne Mined, LOM | $/t, mined | $2.73 |
| Processing Cost, LOM (including rehandle) | $/t, processed | $8.04 |
| G&A, LOM | $/t, processed | $0.93 |
| Royalties, LOM | $/t, processed | $1.97 |
| Total Cash Costs1, LOM | $/t, processed | $15.89 |
| Average AISC1, LOM | $/payable oz | $933 |
| Initial Capital Expenditure (including contingency) | $M | $543.9 |
| Sustaining Capital (incl. Closure) | $M | $291.7 |
| NPV5%, pre-tax (100%) | $M | $991.7 |
| Pre-tax IRR | % | 39.6% |
| NPV5%, after-tax (100%) | $M | $746.2 |
| After-tax IRR | % | 34.8% |
| Payback Period | years | 2.7 |
Notes:
1. Cash costs per payable ounce of gold and per tonne processed, AISC per payable ounce of gold sold and per tonne processed are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”. AISC per payable ounce includes all mining costs, processing costs, mine level G&A, royalties, sustaining capital and closure costs and is adjusted to reflect movements in stockpiles. Cash costs per payable ounce includes all mining costs, processing costs, mine level G&A, and royalties.
2022 DFS Presentation
Watch Hugh Stuart, President and Director of Montage discuss the results of the 2022 Definitive Feasibility Study on the Koné Gold Project
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