Montage Gold (TSX: MAU, OTCQX: MAUTF) has poured first gold at its flagship Koné mine in Côte d’Ivoire months ahead of its original schedule, marking the developer’s transition toward becoming a producer.
The Sept. 26 pour yielded about 1,140 oz. of gold after more than 400,000 tonnes of ore were processed through the oxide circuit since Sept. 8. Construction began in December 2024, and the company had initially scheduled first gold for the second quarter of 2027.
“Our ability to self-perform construction activities has significantly reduced capital cost requirements and allowed us to optimize the construction timeline,” Montage chief development officer Peder Olsen said in a news release.
The oxide circuit is expected to reach commercial production by the end of the year, with construction of the hard-rock comminution circuit on track for completion by mid-2027.
This is a major de-risking event for Montage, as it looks to transition from developer to producer, BMO analyst Raj Ray said.
Koné has an estimated 16-year mine life and is designed to produce more than 300,000 oz. of gold over its first eight years.
Shares in Montage were down 2.2% to C$19.45 ($13.73) apiece on Monday morning in Toronto, valuing the company at C$7.8 billion ($5.5 billion).
Insider growth
Construction of the Koné mine has created approximately 3,600 jobs, of which over 95% were nationals, a result of training programs initiated prior to launching construction, Montage said, adding that its owner-mining operating model has allowed construction employees to transition within the operating team.
Once fully ramped up, the mine is expected to create approximately 1,500 permanent roles.
“Koné is now the ninth operating gold mine in Côte d’Ivoire and poised to deliver strong benefits for all stakeholders,” Montage CEO Martino De Ciccio said. “We look forward to continuing to rapidly grow our business by advancing our development pipeline, with notably the Didievi project in Côte d’Ivoire which is poised to become our next development asset.”
Montage is also pursuing an exploration campaign aimed at adding higher-grade satellite deposits that could supplement Koné’s production. Its 2026 program includes 130,000 meters of drilling, bringing drilling since the 2024 feasibility study to about 380,000 metres.
The overall Koné mine measured and indicated resources have increased by 1.42Moz to 6.29Moz, with grade improving by 27% to 0.80 g/t Au, and inferred resources have increased by 1.62Moz to 2.03Moz, with grade increasing by 36% to 0.68 g/t Au, as compared to the basis used for the 2024 feasibility study.
Montage aims to discover higher-grade satellite deposits with the objective of boosting production throughout 2027.
