Montage Gold Corp (TSXV: MAU) this morning released an updated inferred mineral resource estimate for its Morondo Gold Project, located in Cote d’Ivoire, while also releasing an update for the ongoing preliminary economic assessment. More specifically, the updated resource estimate is for the Kone deposit found on site.
The company this morning reported a revised resource estimate consisting of 3.16 million ounces of gold at an average grade of 0.80 g/t gold, based on a 0.4 g/t gold cut-off on an inferred basis. This effectively increased the resource estimate by 85%, from that of the prior 1.71 million ounces at 0.83 g/t gold.
Also included is a higher grade component of 2.03 million ounces of gold grading 1.1 g/t at a 0.70 g/t cut-off, which the company says is expected to provide the company with flexibility in processing at higher grades in the early years of operation to improve project economics.
|Cut Off Grade (Au g/t)||Mt||Au g/t||Au Moz|
The deposit remains open along strike and at depth, with a 35,000 metre drill program currently underway to further grow the resource and upgrade a portion of the resource to the indicated category. The current estimate is based on 2.35 kilometres of strike, with the deposit extending to depths of 475 metres below surface. The new estimate is also based on a total of 40,540 metres of drilling at the deposit.
With regards to the preliminary economic assessment, or PEA, the company indicated that it remains on track for completion late in the first quarter of 2021, with results to be released in April. An indicated mineral resource meanwhile is slated to be released by the end of the second quarter, and a feasibility study by the end of the year.
Montage Gold last traded at $1.00 on the TSX Venture.
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