VANCOUVER, BC, Montage Gold Corp. (“Montage” or the “Company”)is pleased to announce the appointment of HCF International Advisers Ltd. to assist in the raising of project finance for the development of the Koné Gold Project in Côte d’Ivoire (“KGP” or the “Project”).
Hugh Stuart, CEO of Montage, commented, “Montage has made significant progress since its initial public offering in October 2020 to transition from an exploration stage company with a 1.5M ounce Inferred Resource to a development stage company with a 3.4M ounce Probable Mineral Reserve.
The release of our Definitive Feasibility Study (“DFS”) results on February 14, 2022, illustrated the expected robust economics of the KGP with a long potential mine life of 14.8 years, producing an estimated average of 207koz/year at all-in sustaining costs (non-GAAP) of $933/oz.
During the first 5 years of production, the Project is expected to produce 272koz/year with a payback period of 2.7 years at a gold price of $1,600/oz. Investment interest in the Project has increased significantly following the release of the DFS and we look forward to commencing the project financing mandate which will run in parallel with our ongoing permitting efforts.”
HCF International Advisers Ltd. (“HCF”) is a leading independent corporate finance advisory boutique based in London, UK with a primary focus on the global mining and metals sector. HCF provides strategic and financial advice across the complete life cycle of a project with an extensive track record of securing the funding required to bring the project into operations. In particular, it has a strong history of securing funding for projects in Africa. HCF is comprised of professionals who have extensive financing and technical experience as well as expertise in the funding of gold projects.
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, 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 estimated to produce 3.06M ounces of gold at AISC (non-GAAP) of $933 per ounce over life of mine, with average annual production of 207koz, and peak production of 320koz. Montage has a management team and Board with significant experience in discovering and developing gold deposits in Africa.
TECHNICAL DISCLOSURE
The mineral reserve estimate for the Project 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 National Instrument 43–101.
Data verification programs have included review of QA/QC data, re-sampling and sample analysis programs, and database verification. Validation checks were performed on data, and comprise checks on surveys, collar co-ordinates and assay data. Sufficient verification checks were undertaken on the database to provide confidence that the database is virtually error free and appropriate to support mineral resource and reserve estimation.
A technical report for the Project is being prepared in accordance with National Instrument 43-101 and will be filed on SEDAR at www.sedar.com and on the Company’s website at www.montagegoldcorp.com. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.
The technical disclosure contained in this press release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is the Chief Executive Officer of the Company, a Chartered Geologist and a Fellow of the Geological Society of London. Mr. Stuart is not independent of Montage as he is an officer, director and shareholder of Montage.
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.
NON-GAAP MEASURES
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (“IFRS”), including “all-in sustaining costs” or AISC. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses “all-in sustaining costs” because it understands that certain investors use this information to determine the Company’s ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. AISC is considered to be key indicators of a project’s ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management’s discussion and analysis, available under our corporate profile at www.sedar.com for a more detailed discussion of how we calculate such measures.
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