Montage Gold receives environmental OK for Koné project, mine permit expected in H2

The Koné project is the first of what Montage hopes will make it a premier multi-asset African gold producer. Credit: Montage Gold

Africa-focused Montage Gold (TSXV: MAU) announced Thursday it has received a ministerial order granting all environmental approvals for the development of its Koné project in Côte d’Ivoire.

During 2023, Montage began preparations for the Koné environmental and social impact assessment based upon the project design as outlined in the updated feasibility study published this past January. A hearing was subsequently held in March 2024, during which the ESIA was approved by a commission comprised of numerous government agencies in Côte d’Ivoire.

“The receipt of the environmental permit marks a significant milestone in our permitting process and reflects the strong support received from numerous government agencies and local communities,” Montage CEO Martino De Ciccio said in a news release.

Prior to receiving the environmental permit, Montage team members were received by President Alassane Ouattara at a ceremony in Abidjan, during which he reiterated the nation’s support for the Koné project and its benefits.

Koné is regarded one of the highest quality gold projects in Africa. Total reserves (proven and probable) on the 2,259 sq. km. property are currently estimated at 174.3 million tonnes grading 0.72 gram per tonne gold, for just over 4 million oz. of gold.

As outlined in the feasibility study, the proposed mine will be characterized by sizeable low-cost production and a long mine life of at least 16 years. During the first eight years, gold production is expected to average over 300,000 oz. annually, at an all-in sustaining cost of $998/oz.

Montage has now lodged its mining permit applications with the corresponding government agency and anticipates receiving all necessary approvals for the Koné project during the second half of this year.

The mine permit submissions will cover a total area of 357.5 sq. km., encompassing the Koné deposit, the Gbongogo Main deposit, a 35 km haulage corridor, along with sufficient land area for all plant and related surface infrastructure for development of the mine.

Shares in Montage Gold rose 4.0% to C$1.30 by 10:50 a.m. ET, near a 52-week high of C$1.41. Its market capitalization stood at C$310.8 million ($227m).