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OTC MAUTF
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Montage Releases First Results from Satellite Drill Program including 78m of 2.70g/t Gold at Gbongogo and 20m of 7.22g/t Gold at Lokolo Main

January 23, 2023

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Vancouver, British Columbia — Montage Gold Corp. (“Montage” or the “Company”) (TSXV: MAU) (OTCQX: MAUTF) is pleased to report its first drill results on the recently acquired Mankono Sissédougou Joint Venture, which now forms part of a much larger 2,258 sq km Koné Gold Project (“KGP”). Drilling began in November 2022 and with strong early success will continue through 2023. Results in this release reflect 6,713 metres of RC drilling completed on five target areas to the end of 2022.

 

HIGHLIGHTS

  • Gbongogo Delivers
    • Acquisition strategy successful with intercepts of high-grade achieved
    • GBRC024: 95m at 2.03g/t from surface
    • GBRC023A: 37m at 2.49g/t from 1m
    • GBRC025: 70m at 2.25g/t from 49m
    • GBRC026: 78m at 2.70g/t from surface
  • Lokolo Main – Initial Testing Shows Impressive High-Grade
    • LOKRC026: 20m at 7.22g/t from 25m
    • LOKRC025: 20m at 2.45g/t from 42m
    • Sits within a broad 12-km anomalous trend
  • First Regional Targets Drilled Deliver Encouraging Results
    • Koban North: 15m at 2.37g/t from 6m
    • Sena: SENARC004: 15m at 2.37g/t from 6m
    • Lokolo North: LOKRC021: 20m at 1.74g/t from 38m
  • With Strong Initial Success Drilling Program Being Expanded to Three Rigs

Rick Clark, Montage CEO commented, “We are very pleased to report these initial drill results. As we have previously stated, the addition of high-grade satellite targets will significantly enhance the KGP and position it as one of the most attractive gold development projects in West Africa.

“The high-grade intercepts at Gbongogo alone position Montage to substantially upgrade the economic potential of the KGP and the new discoveries being made in areas such as Lokolo Main add a whole new and exciting upside, and we are just getting started. We look forward to reporting on our progress on a regular basis in the coming months towards a new economic review of the KGP.”

 

DETAILS

KGP Overview and Exploration Strategy

The KGP forms a contiguous block of 1,800 sq km of exploration permits and a further 458 sq km of exploration permit applications, for a total of 2,258 sq km covering a strike length of over 75km on one of the most prospective gold belts in West Africa (see Figure 1).

Montage has completed 6,713m of a 25,000m exploration program that will include a combination of RC, diamond, and aircore drilling that will continue over the coming months. It is expected that at least nine existing targets will be drilled with the aim of identifying new high-grade satellite deposits grading +1.5g/t or better that will complement the large-scale Koné deposit.  

Generative exploration is also underway to identify other prospective drilling targets.

Figure 1: KGP Footprint and Target Areas

 

Historic results from the targets shown in Figure 1 were reported in the Company’s press release dated November 22, 2022.

Gbongogo Delivers

Currently, the top priority prospect for resource development at the KGP is Gbongogo which hosts an Inferred Mineral Resource of 5.2Mt at 2.1g/t for 351koz (1.2g/t cut off). The first drilling program completed by Montage (2,979m to date) on this target and has already returned impressive intercepts that will aid in the upgrade to an Indicated Mineral Resource later this year.

Hole From
(m)
To
(m)
Length
(m)
Au
g/t
GBRC022 3 30 27 1.87
GBRC023A 1 38 37 2.49
GBRC024 0 95 95 2.03
Incl. 51 64 13 9.75
GBRC025 49 119 70 2.25
GBRC026 0 78 78 2.70
GBRC030 38 88 50 2.04
GBRC033 3 52 49 2.29

Mineralization at Gbongogo is hosted within and on the margins of a plunging quartz diorite plug with a surface expression of 250m by 100m (Figure 2). Montage is looking to upgrade and expand the Inferred Resource in Q1 to define a maiden Indicated Mineral Resource in Q2. Phase 2 diamond drilling will test the deeper portions of the resource and provide samples for metallurgical test work. Hydrogeological and geotechnical work is planned for Q2 to support a revised Feasibility Study expected later this year.

RC and Aircore drilling in Q1 will target the northeast and southern extension of Gbongogo, where widespread (+100ppb) anomalism and artisanal mining is extensive.

Figure 2: Cross Section at Gbongogo Including New and Historic Drilling

 

Lokolo Main Returns Significant High-Grade

639m of RC drilling (7 holes) was completed in December 2022 to follow up on a historic result of 13m at 2.29g/t. The area is being extensively mined by artisanals, opening up further potential that will be tested by phase 2 drilling (Figure 3).

Hole From
(m)
To
(m)
Length
(m)
Au
g/t
LOKRC024 57 60 3 3.93
LOKRC025 42 62 20 2.45
LOKRC026 25 45 20 7.22

These new high-grade results sit within an active artisanal mining area that has not yet been fully assessed within the wider 12-km Lokolo trend.

Figure 3: Aerial Photo of Lokolo Main Showing Artisanal Working and Drill Results

 

Other Regional Targets Deliver Positive Results

2,407m of RC drilling to the end of 2022 was also completed on three additional district targets: Koban North, Sena, and Lokolo North. All targets returned high-grade intercepts and have the potential to develop into a satellite pits. Follow up drilling will take place in the first half of 2023.

Taregt Hole From
(m)
To
(m)
Length
(m)
Au
g/t
Koban North KBNRC001A 106 111 5 4.72
KBNRC003 51 64 13 2.06
KBNRC006 37 56 19 1.68
Sena SENARC002 89 98 9 2.39
SENARC003 47 56 9 1.62
SENARC004 6 21 15 2.37
Lokolo North LOKRC020 25 38 13 1.75
LOKRC021 38 58 20 1.74

Drilling at Koban North focussed on an area of mineralization across 200m in width with historic results that included 20m at 1.94g/t and 21m at 1.67g/t. Montage drilling has returned similar grades and widths over a strike length of 300m.

RC drilling at Sena was to follow up historic results from two aircore holes that included 19m at 1.57g/t and 19m at 1.75g/t over a strike length of 350m. The zone remains open.

At Lokolo North, RC drilling targeted a previously untested area of artisanal workings.

Outlook for 2023

Following the Seasonal break, drilling has resumed at Gbongogo with one RC rig that will soon be joined by a core rig. RC drilling will then move on to test other targets such as Bafretou South, Lokolo West and Yeré North. An aircore rig will commence testing of additional prospective target areas with the aim of generating new RC drill targets. Surface geochemical work is ongoing to add additional prospects for drill testing.

The Company’s aim is to revise the KGP Feasibility Study by year-end 2023 incorporating Gbongogo and potentially one or more other highly prospective satellite prospects.

 

ABOUT MONTAGE GOLD CORP.

Montage is a Canadian-based precious metals exploration and development company focused on opportunities in Côte d’Ivoire. The Company’s flagship property is the Koné Gold Project, located in northwest Côte d’Ivoire, covering a total area of 2,258 sq km, and which currently hosts a Probable Mineral Reserve of 161.1Mt grading 0.66g/t for 3.42M ounces of gold. The Company released the results of a DFS on the Koné Gold Project on February 14, 2022, outlining a 15-year gold project producing an estimated 3.06M ounces of gold over life of mine, with average annual production of 207koz, and estimated peak production of 320koz. The project also contains an Inferred Mineral Resource of 5.2Mt at 2.1g/t for 351,000oz at 1.2g/t cut off at the Gbongogo Prospect located 30km north of the Koné deposit. Montage is executing an exploration program in 2022/23 with the objective of discovering multiple high-grade satellite deposits to supplement the Probable Reserves at the Koné Gold Project. Montage has a management team and Board with significant experience in discovering and developing gold deposits in Africa.

TECHNICAL DISCLOSURE – GBONGOGO

The Mineral Resource Estimate for Gbongogo has an effective date of Aprill 22, 2022, and was carried out by Mr. Jonathon Abbott of MPR Geological Consultants of Perth, Western Australia who is considered to be independent of Montage Gold. Mr. Abbott is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101 (“NI 43-101”). Mr. Abbott consents to the inclusion in this press release of the information, in the form and context in which it appears. For details regarding data verification, QA/QC, interpretations, details regarding drill results and the assumptions, parameters and related matters with respect to the Inferred Mineral Resource Estimate, please see the press release titled “Montage Gold Corp. Announces Government Approval of Mankono Exploration Permits and Provides Corporate Updates” dated September 8, 2022 and filed on the Company’s SEDAR profile at www.sedar.com.

TECHNICAL DISCLOSURE – KONÉ GOLD PROJECT

The Mineral Reserve Estimate for the Koné Gold Project has an effective date of February 14, 2022 and was carried out by Ms. Joeline McGrath of Carci Mining Consultants Ltd. who is considered to be independent of Montage. Ms. McGrath is a member in good standing of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the work which she is undertaking to qualify as a Qualified Person under NI 43-101.

The Mineral Resource Estimates for the Koné Gold Project have an effective date of August 12, 2021 and were carried out by Mr. Jonathon Abbott of MPR who is considered to be independent of Montage Gold. Mr. Abbott is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under NI 43-101.

For further details of the data verification undertaken, exploration undertaken and associated QA/QC programs, and the interpretation thereof, and the assumptions, parameters and methods used to develop the Mineral Reserve Estimate and the Mineral Resource Estimates for the Koné Gold Project, please see the definitive feasibility study, entitled "Koné Gold Project, Côte d'Ivoire Definitive Feasibility Study National Instrument 43-101 Technical Report" (the “DFS”) and filed on SEDAR at www.sedar.com. The DFS was prepared by Lycopodium Minerals Pty Ltd. and incorporates the work of Lycopodium and Specialist Consultants, including Mr. Abbott, under the supervision of Sandy Hunter, MAusIMM(CP), of Lycopodium, a Qualified Person pursuant to NI 43-101 who is independent of Montage. Readers are encouraged to read the DFS in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The DFS is intended to be read as a whole, and sections should not be read or relied upon out of context.

TECHNICAL DISCLOSURE – NEW DISCOVERIES WITHIN KGP

Samples used for the results described have been prepared and analyzed by fire assay using a 50-gram charge at the Bureau Veritas facility in Abidjan, Côte d’Ivoire. Field duplicate samples are taken, and blanks and standards are added to every batch submitted. QAQC has been approved in line with industry standards and interpretations reviewed the Qualified Person.

The technical contents of this press release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is the President of the Company, a Chartered Geologist and a Fellow of the Geological Society of London.

 

CONTACT INFORMATION

Hugh Stuart
President 
hstuart@montagegoldcorp.com

Adam Spencer
Executive Vice President, Corporate Development
aspencer@montagegoldcorp.com
mobile: +1 (416) 804-9032

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

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 resource estimates, and the Company’s plans, focus and objectives, including its exploration objectives and future exploration programs at Mankono and districtwide at the KGP, expectations that the Gbongogo Inferred Mineral Resource will become an Indicated Mineral Resource, expectations that the KGP will be improved and that additional higher grade resources will be added, the details regarding the conceptual exploration targets for Mankono, and timing for an updated technical report on the KGP. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions, including, with respect to mineral resource estimates, those set out in the DFS and those set out under the heading “Mineral Resource Modeling and Estimation Assumptions – Gbongogo” in the press release titled “Montage Gold Corp. Announces Government Approval of Mankono Exploration Permits and Provides Corporate Updates” dated September 8, 2022 and filed on the Company’s SEDAR profile at www.sedar.com. 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 gold and other commodity prices, including lower than expected future gold prices which could reduce the economic returns on, or the viability of, a deposit, uncertainties inherent in the exploration of mineral properties such as incorrect resource estimates due to incorrect modelling or unforeseen geological conditions, the impact and progression of the COVID-19 pandemic and other risk factors set forth in the Company’s annual information form 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: Listing of Intercept Detail