Montage Gold Accelerates $860M Kone Project Toward Earlier Production

Kitco Mining Interview with Martino Dicho – Coney Gold Project & Montage Gold Strategy

Key Concepts:

• Coney Gold Project (Côte d'Ivoire): Montage Gold’s flagship project, an $860 million development aiming for >300,000 oz/year production.
• Oxide Circuit: An accelerated production pathway focusing on easily processed oxide ores.
• Greenfield Pipeline: Exploration projects in early stages of development.
• Multi-Asset Company: A mining company with diverse projects and operations, reducing risk.
• Junior Explorer Strategy: Investing in and partnering with smaller exploration companies to leverage expertise and access new projects.
• Free Cash Flow (FCF): The cash a company generates after accounting for capital expenditures.
• Teo Discovery: A recent high-grade gold discovery within the Coney Gold Project area.
• DDV Project (Côte d'Ivoire): African Gold’s development-stage project acquired by Montage Gold.
• Wend Permit (Côte d'Ivoire): A newly awarded exploration permit adding to Montage Gold’s land package.

1. Coney Gold Project Development & Acceleration

Montage Gold is developing the $860 million Coney Gold project in Côte d'Ivoire, targeting production exceeding 300,000 ounces of gold per year for the first eight years of a 16-year mine life. Originally slated for Q2 2027 production, the company now anticipates first production later in 2026, driven by the addition of an oxide circuit. This circuit allows for the processing of oxide ores, bringing production forward by 5-6 months. The accelerated timeline lowers peak funding requirements and generates upfront cash flow for reinvestment into exploration and future projects. Recent exploration has revealed higher-grade deposits (1-1.6 g/ton) compared to the main Koné deposit (0.5 g/ton), potentially increasing overall production. The project has already reached 2,000 personnel and 100 pieces of equipment on site.

2. Economic Impact of Accelerated Production & Gold Price

The early production enabled by the oxide circuit is particularly advantageous given the current gold price of $2,300/oz (as of the interview date, referenced as $4,600 in the transcript – likely a typo). This allows for lower production costs and increased profitability. The upfront cash flow will facilitate continued exploration and expedite the transition to the next project – the African Gold transaction. Martino Dicho stated, “with gold price at $2,300 per ounce, I can very much understand your motivation to bring that on and bring that on much quicker.”

3. Exploration Success & Resource Expansion

The Coney property contains over 50 identified targets, significantly exceeding the two deposits initially studied. In the past two years, seven new deposits have been added to the resource stage, with many more promising targets under investigation. These new deposits exhibit significantly higher grades (1-1.6 g/ton) compared to the main Koné deposit (0.5 g/ton). The company is rapidly advancing these deposits towards indicated resource status, conducting metallurgical and geotechnical studies concurrently with drilling. The entire 35km stretch between the Koné and Gogo deposits is already permitted, allowing for seamless integration of these satellite deposits into the mine plan. Additional permitting for the northern part of the property is expected later in 2026.

4. Strategic Expansion into African Gold & Greenfield Pipeline

Montage Gold is pursuing a strategy of becoming a multi-asset company focused in Africa. Beyond the Coney project, the company has taken a 20% stake in African Gold in Côte d'Ivoire, with a negotiated option for operatorship. Drilling conducted by Montage Gold’s team doubled the resource at the DDV project to 1 million ounces at 2.5 g/ton within a short timeframe (March-June). An offer to acquire the remaining 80% of African Gold shares was made in late 2025 and is expected to close in March 2026. The company has also secured the Wend permit in Côte d'Ivoire, further solidifying its presence in the country.

5. Junior Explorer Investment Strategy

Montage Gold is actively investing in junior exploration companies, including Sanu Gold in Guinea, taking a 20% stake and a seat on the technical committee. This strategy leverages Montage Gold’s technical expertise and shareholder backing to partner with companies exploring promising ground. Sanu Gold’s Diana property has yielded encouraging results (50 meters at 3 g/ton), demonstrating the potential of the Sigiri Basin in Guinea. The success of this strategy is exemplified by the increase in African Gold’s share price from 5 cents to 50 cents following Montage Gold’s involvement. The company also has a stake in Oram, located near the Coney project.

6. Backing & Potential Acquisition Opportunities

Montage Gold is backed by the London Group and Xian Mining, both aggressive investors with a history of developing assets. The mandate from these shareholders is to build a multi-asset African mining company, mirroring the success of the team’s previous experience with Endeavor Mining (building four mines and discovering 15 million ounces in 10 years). The company remains opportunistic regarding potential acquisitions, including the possibility of acquiring assets from Barrick Mining should they proceed with a separation of their North American and international operations. However, any acquisition will be evaluated based on price, asset quality, and value creation.

7. Gold Price Disconnect & Market Dynamics

There is a significant disconnect between the current gold price ($2,300/oz) and the long-term price forecasts of many analysts (under $3,000/oz). Martino Dicho believes this gap will narrow as companies report strong earnings and demonstrate the substantial free cash flow being generated by the gold mining industry. He anticipates increased investment from generalist funds into the sector, initially focusing on larger, more liquid companies before flowing down to smaller, pre-production and exploration companies. He stated, “I think as as time goes by that gap is going to narrow for sure.”

8. Key Catalysts for 2026

Montage Gold anticipates a catalyst-rich year, including:

• Further exploration results from the Teo discovery.
• Resource updates for both the Coney project and the DDV project (African Gold).
• Closure of the African Gold acquisition.
• First gold pour from the Coney project, marking the transition to a producing company.

Conclusion:

Montage Gold is rapidly advancing the Coney Gold project towards production, leveraging exploration success, strategic acquisitions, and a favorable gold price environment. The company’s multi-asset strategy, coupled with strong shareholder backing, positions it for significant growth and the potential to become a leading gold producer in Africa. The accelerated production timeline, driven by the oxide circuit and high-grade discoveries, promises to deliver substantial value to shareholders. The company’s proactive approach to exploration and strategic partnerships demonstrates a commitment to long-term sustainable growth.