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Montage Gold Announces Koné Gold Project PEA with After-Tax NPV of $652M and 31% IRR
VANCOUVER, BC, May 25, 2021 /CNW/ - Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCPK: MAUTF) is pleased to announce the results of the Prelimi
About this update from Montage Gold Corp.
[{"type":"text","content":" VANCOUVER, BC, May 25, 2021 /CNW/ - Montage Gold Corp. (\"Montage\" or the \"Company\") (TSXV: MAU) (OTCPK: MAUTF) is pleased to announce the results of the Preliminary Economic Assessment (the \"PEA\" or the \"Study\") for the Koné Gold Project (\"Koné Gold Project\", \"Project\", or \"KGP\") in Côte d'Ivoire. The PEA was prepared in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\"). Please note that all financial figures in this press release are in United States dollars, unless otherwise noted. HIGHLIGHTS Significant Production Potential – Establishing a Foundation for a New Gold District 11Mtpa operation producing 3.0Moz of gold over a 14.7 year Life-of-Mine (\"LOM\") Average annual gold production of 249,000 ounces in first 9 years, 205,000 ounces/year LOM. Peak production 308,000 ounces in years 2 and 3 Strong Financial Metrics $652M after-tax NPV5% and 31% IRR at base case $1,600 gold price $1,015M after-tax NPV5% and 46% IRR at spot $1,850 gold price LOM EBITDA1 of $2,304M at a gold price of $1,600 per ounce Fast capital payback of 2.8 years Simple Project with Economies of Scale Average AISC1 of $835/payable oz during first 3 years LOM AISC1 of $975/payable oz LOM total cash costs of $15.39/t processed Simple deposit with true widths up to 330m and limited pre-strip LOM strip ratio of 0.93:1 Clean metallurgy and standard CIP flowsheet Low rock hardness driving low power requirements Low-cost, reliable on-site LNG/solar power generation Significant community support built over 10+ year history Development Capital Pre-production capital requirement of approximately $490M Exploration Upside within Trucking Distance Majority of 1,442km2 KGP land package is unexplored Over 100km strike length of prospective mineral trends within trucking distance Fully Funded to Complete Feasibility Study and 55,000m Drill Program Hugh Stuart, Montage CEO commented, \"Since its listing in October 2020, Montage has moved quickly and efficiently to demonstrate that the Koné Gold Project has the potential to be one of the largest gold projects in Africa situated within a highly prospective emerging district. \"The PEA shows that Koné has the potential to produce over 200,000 ounces/year LOM with 249,000 ounces/year for the fi...