"The KGP continues to demonstrate the benefits of scale with its wide zones of homogenous mineralization (true widths exceeding 250m in areas) and a low strip ratio (less than 1:1). In addition, with over 100,000m of drilling now completed we have more detail and a better understanding of the higher-grade areas of the deposit.
"Overall, this updated MRE sets the stage for the upcoming Feasibility Study targeted for year-end 2021. The transition from an Inferred resource estimate to a maiden Indicated resource is a critical step towards the Company's first Mineral Reserve estimate, which will form the basis of the Feasibility Study. We believe this achievement demonstrates not only the quality of the KGP, but the ability of Montage to plan, execute and deliver on the milestones we have set out."
HIGHLIGHTS
- Maiden Indicated Mineral Resource estimate comprises
225Mt grading 0.59g/t for 4.27Moz at a 0.20g/t cut-off grade -
100% conversion from
January 2021 Inferred Mineral Resource estimate - Higher grade component of deposit increases in size, grade and confidence level
-
Indicated Mineral Resource estimate includes 77Mt grading 1.0g/t for 2.55Moz at a 0.60g/t cut-off grade
-
Updated Inferred Mineral Resource estimate comprises 22Mt grading 0.45g/t for 0.32Moz at a 0.20g/t cut-off grade
-
Exploration strategy at KGP now shifts from infill to growth.
- Feasibility Study on track for delivery by year-end 2021.
DETAILS
Updated Mineral Resource Estimate
The updated MRE was undertaken by
The updated MRE is reported within an optimal pit shell based on a
Table 1: Updated Mineral Resource Estimate by Cut-off Grade
Cut-off Grade | Indicated | Inferred | ||||
Au g/t | Mt | Au g/t | Mt | Au g/t | ||
0.1 | 278 | 0.51 | 4.56 | 32 | 0.35 | 0.36 |
0.2 | 225 | 0.59 | 4.27 | 22 | 0.45 | 0.32 |
0.3 | 168 | 0.70 | 3.78 | 14 | 0.56 | 0.25 |
0.4 | 128 | 0.82 | 3.37 | 9.0 | 0.69 | 0.20 |
0.5 | 99.1 | 0.92 | 2.93 | 5.9 | 0.81 | 0.16 |
0.6 | 76.9 | 1.03 | 2.55 | 3.9 | 0.95 | 0.12 |
0.7 | 59.9 | 1.14 | 2.20 | 3.2 | 1.1 | 0.10 |
0.8 | 46.8 | 1.25 | 1.88 | 1.9 | 1.2 | 0.07 |
Notes | |
1. |
Indicated Mineral Resources and Inferred Mineral Resources are reported in accordance with NI 43-101 with an effective date of the 12th of |
2. |
The updated MRE is reported on a 100% basis and is constrained within an optimal pit shell generated at a gold price of |
3. | The identified Mineral Resources are classified according to the "CIM" definitions of Indicated Mineral Resources and Inferred Mineral Resources. |
4. |
The updated MRE was prepared by Mr. |
5. | The estimates at 0.2g/t cut-off grade represent the base case or preferred scenario. |
6. | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
7. | The Company will file an NI 43-101 Technical Report on the updated MRE within 45 days of this release. |
Table 2 (below) shows a comparison of the updated MRE against the
Table 2: Comparison of
Cut-off | |||||||||
Indicated Mineral Resource | Inferred Mineral Resource | Inferred Mineral Resource | |||||||
Au g/t | Mt | Au g/t | Mt | Au g/t | Mt | Au g/t | |||
0.1 | 278 | 0.51 | 4.56 | 32 | 0.35 | 0.36 | 255 | 0.51 | 4.18 |
0.2 | 225 | 0.59 | 4.27 | 22 | 0.45 | 0.32 | 211 | 0.59 | 4.00 |
0.3 | 168 | 0.70 | 3.78 | 14 | 0.56 | 0.25 | 161 | 0.69 | 3.57 |
0.4 | 128 | 0.82 | 3.37 | 9.0 | 0.69 | 0.20 | 123 | 0.80 | 3.16 |
0.5 | 99.1 | 0.92 | 2.93 | 5.9 | 0.81 | 0.16 | 95.6 | 0.90 | 2.77 |
0.6 | 76.9 | 1.03 | 2.55 | 3.9 | 0.95 | 0.12 | 74.1 | 1.0 | 2.38 |
0.7 | 59.9 | 1.14 | 2.20 | 3.2 | 1.1 | 0.10 | 57.5 | 1.1 | 2.03 |
0.8 | 46.8 | 1.25 | 1.88 | 1.9 | 1.2 | 0.07 | 44.7 | 1.2 | 1.72 |
Notes | |
1. |
Refer to |
2. | See Table 1 for disclosures relating to the Updated MRE. |
Drilling in 2021 has been successful both in achieving 100% conversion of the Inferred resources tested by the infill drilling, and adding additional Indicated and Inferred resources. Importantly, this has been done while maintaining or slightly improving the grade profile across the range of cut-off grades. The successful conversion from Inferred to Indicated can be attributed to the mineralization style and its consistency across extreme widths as well as the modelling approach taken by Montage and its consultants.
Figure 1 shows a typical cross-section through the Koné deposit with the updated block model. Expansion of the deposit was primarily derived from down plunge drilling in the south and at depth along the 2.4km of strike length.
An important aspect of the updated MRE is that with more than double the amount of drilling completed since the
Future Exploration Strategy at the KGP
With the successful resource conversion demonstrated by the updated MRE, the KGP has been significantly de-risked as the project advances towards the completion of a Feasibility Study. All resource drilling to support the completion of the Feasibility Study is now complete.
Exploration will now focus on further expansion of the mineralization at the Koné deposit, particularly the zones of higher grade, and will continue the evaluation of other prospects on the Koné Exploration License.
The Company also expects to be awarded at least one new Exploration License by the government of Côte d'Ivoire in the coming quarter and is excited at the prospect of conducting district scale exploration for the first time. With the addition of new ground to explore, the Company's strategy will be to identify satellite deposits that can be mined and trucked to a central processing facility at the KGP.
ABOUT
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
MINERAL RESOURCE MODELING AND ESTIMATION ASSUMPTIONS
Recoverable resources were estimated for the Koné
The updated MRE has been classified and reported in accordance with NI 43-101 and classifications adopted by
The MRE is based on RC and diamond drilling data supplied by Montage in
Inferred Mineral Resources have been estimated within a single mineralized envelope sub-divided along strike into three mineralized domains comprising lower grade southern and northern domains, and a main higher grade central zone. The mineralized envelope is 2.4km in length and up to 350m in true width.
Estimates tested by drilling spaced at around 50m by 50m are classified as Indicated, with Inferred estimates based on generally 100m spaced drilling.
The updated MRE includes bulk densities of 1.65, 2.55 and 2.8t/bcm for oxide, transition and fresh mineralization respectively on the basis of 4,175 immersion density measurements performed by the Company on diamond core samples. Reliability of these measurements have been confirmed by 50 independent check measurements by Bureau Veritas.
To satisfy the definition of Mineral Resources having reasonable prospects for eventual economic extraction, the estimates are constrained within an optimal pit and generated from the following key parameters:
- Gold price of
US$1,500 /oz - The MIK Model is a recoverable resource model and mining recovery and dilution are taken into account within the modelling process.
- Processing recovery of 94.3% in oxide, 91.1% in transition material and 89.0% in fresh rock for the central and southern mineralized domains and oxide, transitional and fresh recoveries of 93.0%, 90.6% and 88% for the north mineralized domain.
- Overall slope angle of 35° in oxide rock, 40° in transition and 60° in fresh material
-
Average mining costs of
US$2.63 per tonne -
Average processing costs (including G&A) of
US$6.62 per tonne -
Total selling costs (including state and third-party royalties) of
US$102.2 /oz
The pit shell constraining the estimates extents over 2.5km of strike to a maximum depth of around 550m.
QUALITY ASSURANCE/QUALITY CONTROL
All drilling was carried out under the supervision of Montage personnel. All drilling data completed by Montage utilized the following procedures and methodologies:
- RC drilling used a 5.25-inch face sampling pneumatic hammer with generally 1m samples collected into 60 litre plastic bags. Samples were kept dry by maintaining enough air pressure to exclude groundwater inflow. If water ingress exceeded the air pressure, RC drilling was stopped, and drilling converted to diamond core tails. Once collected, RC samples were riffle split through a three-tier splitter to yield a 12.5% representative sample for submission to the analytical laboratory. The residual 87.5% sample was stored at the drill site until assay results were received and validated. Coarse reject samples for all mineralized samples corresponding to significant intervals are retained and stored on-site at the Company controlled core yard.
-
Diamond drill holes were drilled with PQ and HQ diamond drill bits. The core marked up and logged, and generally 1m samples (minimum 0.05m) were then cut into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Company core yard at Fadiadougou. The other half was sampled, catalogued, and placed into sealed bags and securely stored at the site until shipment.
-
All samples for the period 2017-2018 were shipped to the
Intertek Laboratory in Tarkwa,Ghana andBureau Veritas Laboratory inAbidjan for preparation and assay. All samples for the period 2019 to 2020 were shipped to theBureau Veritas Laboratory . The samples for 2021 programme were shipped to either Bureau Veritas of Intertek. Both Intertek and Bureau Veritas are independent of Montage. - At both laboratories, samples were dried and crushed by the laboratory to -2mm and a 1.5kg split prepared from the coarse crushed material for pulverizing to -75um. Gold analysis was undertaken using a 50-gram charge and fire assay with an atomic absorption finish. Quality control procedures included systematic insertion of blanks, duplicates and sample standards into the sample stream.
For more information on the Company's QA/QC and sampling procedures, please refer to SEDAR for the NI 43-101 Technical Report entitled "Preliminary Economic Assessment for the Koné
QUALIFIED PERSONS STATEMENT
The Mineral Resource Estimate was carried out by Mr.
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.
SOURCE
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