Montage Gold Indicates IRR Of 31% For Kone Project In PEA
Montage Gold Corp. (TSXV: MAU) shared today the results of its preliminary economic assessment for the Koné Gold project in Côte d’Ivoire. The results highlighted a US$652.2M after-tax NPV5% and 30.9% after-tax IRR at a base case price of US$1,600 per gold ounce.
The company indicated this morning that potential total gold production as per the PEA is pegged at 3.0 million ounces over 14.7 years life of mine. The study points to average annual gold production of 249,000 ounces for the first 9 years, peaking at 308,000 ounces in years 2 and 3, and an average 205,000 ounces for the life of mine.
Montage pegs EBITDA for the life of mine at US$2,304.3 million, calculated at US$1,600 per ounce gold price. On an annual basis, EBITDA is pegged at US$261.5 million per year for the first 3 years and US$187.7 million per year for the first 9 years.
The company also noted that total cash costs for the life of mine is estimated to be at US$15.39 per tonne processed. The average AISC is estimated at US$835 per payable ounce for the first three years and US$975 per payable ounce for the life of mine.
The estimate for capital requirement on a pre-production level is around US$490 million. The total capital requirement for the life of mine is estimated at US$935 million including closure costs. Pre-production capital requirements meanwhile are estimated at $490 million.
The company intends to complete a feasibility study on the project by the end of the fiscal year, while infill drilling on the property continues to upgrade resources. The company is also looking to obtain mining permits for the property this year, along with completing an environmental and social impact study.
You may view the detailed results of Montage’s PEA of the Koné Gold project here.
Montage Gold Corp. last traded at $0.91 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
