MONTAGE GOLD SETS SHORT-TERM DISCOVERY TARGET OF MORE THAN 1 MILLION OUNCES OF HIGHER-GRADE M&I RESOURCES

2024-10-07

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HIGHLIGHTS:

2024 exploration efforts at the Koné project are focused on both delineating higher grade satellite targets, with the goal of supplementing production from the commencement of operations, and identifying new targets A first drill campaign, totalling 30,170m , was completed at the end of July 2024 Mineralisation has now been confirmed at all 14 targets drilled since the start of the year 52 exploration targets now identified on the property, an increase from the 35 targets reported in July 2024

Drill results confirm potential to rapidly delineate maiden resources across several targets: Gbongogo deposit: Southern mineralised extension was confirmed, with results including 9m at 5.01 g/t Au, 13m at 1.53 g/t Au and 9m at 1.75 g/t Au ANV target: Confirmation of 1km long mineralised trend, with results including 51m at 2.00 g/t Au (incl. 1m at 18.86 g/t Au), 13m at 4.00 g/t Au (incl. 1m at 13.65 g/t Au), 17m at 1.86 g/t Au and 23m at 2.30 g/t Au (incl. 1m at 12.02g/t Au) Lokolo Main target: High grade mineralisation confirmed with results including 5m at 2.70 g/t Au, 8m at 5.56 g/t Au (incl. 2m at 35.13 g/t Au) and 11m at 6.28 g/t Au Diouma North target: High grade mineralisation confirmed with results including 22m at 2.9 g/t Au and 8m at 8.46 g/t Au (incl. 1m at 25.65 g/t Au and 1m at 28.58 g/t Au)

A second 60,000m drill programme was launched in September 2024 with the goal of delineating resources by year-end at several targets, in addition to further drill testing of other targets Targeting the discovery of more than 1Moz of M&I resources, at a grade 50% higher than the Koné deposit, to be achieved before the commencement of production

ABIDJAN , Côte d'Ivoire , Oct. 7, 2024 /CNW/ - Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCQX: MAUTF) is pleased to announce that it is continuing to make rapid progress to discover and delineate higher grade exploration targets at its Koné project in Côte d'Ivoire, with the goal of further improving the production profile from the commencement of the operation.

2024's first drill campaign was completed at the end of July, totalling 30,170 metres at a cost of approximately US$4 million , with the goal of prioritizing key targets for the next drill programme. The drill programme successfully confirmed mineralisation at all 14 targets which were drilled. A second 2024 drilling campaign, totalling 60,000 metres at an approximate cost of US$8 million , commenced mid-September with the goal of delineating resources at selected advanced targets by year-end, in addition to continuing to drill test and progress other targets.

Martino De Ciccio , CEO of Montage, commented: "We are very pleased with the rapid progress that we are making to accelerate our Koné project towards a construction launch, while seeking to further unlock value by investing in exploration. The drill results published today, along with the exhaustive review of historical geological data, confirm the prospectivity of the Koné area and provide confidence in our ability to quickly add higher grade satellites.

Moreover, in line with our commitment to accountability and transparency, we are pleased to set an aggressive Measured and Indicated Resource discovery target of at least 1 million ounces at a grade of more than 1 g/t Au, which would be 50% higher compared to the current Koné deposit grade, to be achieved before the commencement of production. This would represent significant returns on our exploration investment and aligns with our strategic objective of boosting production from the commencement of production while maintaining an annual production of at least 300koz for more than 10 years.

Following the recent award of our mining permit, we now look forward to further derisking the Koné project with the advancement of detailed engineering and concluding our financing process. This would further build on the momentum generated to progress our strategy of creating a premier African gold producer and delivering value for all our stakeholders."

Silvia Bottero , EVP Exploration of Montage said: "We are very excited to be rapidly advancing exploration at our Koné project given the prospectivity of the area, with the goal of quickly delineating high-grade satellite targets which can be slotted into the mine plan from the commencement of the operation. Moreover, the exhaustive geological review conducted, along with the excellent drill results obtained from the ongoing exploration programme, underpins our confidence in setting aggressive short-term discovery targets to quickly unlocking value through exploration.

Our exploration strategy is focused on both delineating resources in the short-term while also preparing for medium and longer-term exploration success, by continuously advancing exploration targets from conceptual stage through to the resource delineation phase. Given that we have already identified 52 exploration targets, which are at various stages of advancement, we are equally allocating our drilling capacity to immediate resource delineation and to progress early stage targets. We are very excited to pursue early-stage reconnaissance drilling as we believe that we are just scratching the surface given that Koné is one of West Africa's largest gold projects by land area and is located in a very favourable geological setting, being at the junction of major shearing structures hosting multimillion ounce deposits.

Beyond our Koné project, we are also making good progress on our strategic objective of building a standalone greenfield exploration portfolio, by applying for highly prospective grounds in the region, with the goal of sourcing our next development project through our exploration success.

Lastly, I'd like to thank our exploration team for their significant efforts and dedication to achieving rapid success. I'd also like to extend a warm welcome to the many that have eagerly joined our exploration team given our common objective of unlocking value through the execution of our proven exploration methodology."

ABOUT THE EXPLORATION PROGRAMME

Exploration Outlook and Objectives

Management believes that significant potential exists to add further higher-grade satellites, with the aim of enhancing the profile of the Koné project by slotting these discoveries early in the mine plan. In line with its commitment to accountability and transparency, management has set an aggressive target of discovering of at least 1 million ounces of Measured and Indicated Resources at a grade of over 1 g/t Au, which would be 50% higher compared to the current Koné deposit grade, to be achieved before the commencement of production. This confidence is supported by the success of the ongoing exploration programme, and the potential identified through the exhaustive screening and ranking methodology as described in the section below entitled " _Strategic Exploration Methodology _".

Achieving the set exploration target would represent a significant return on the exploration investment and aligns with the Company's strategic objective of boosting production from the commencement of production while maintaining an annual production of at least 300koz for more than 10 years. As shown in Figure 1 below, the objective is to replicate the recent exploration success which resulted in the addition of the Gbongogo Main higher grade satellite deposit (10.7MT at 1.43g/t Au containing 490koz of Probable Reserves 1 ) which is to be blended with the Koné deposit ore feed over the first three years of operations, resulting in an average gold production of 349,000 ounces per year during this period given that the Gbongogo Main deposit reserve grade is approximately 95% higher than that of the Koné deposit ore feed over the life of mine 1 .

[](https://mma.prnewswire.com/media/2523991/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

| 1 Source: Updated Feasibility Study press release dated January 16, 2024 available on Montage's website and on SEDAR+. See "Technical Disclosure". |

Overview of Exploration Targets

Based on the new drill data received and the below described exhaustive review of all available historical geological data, the number of identified exploration targets has increased from 35, as previously reported in July 2024 , to 52 targets across 6 mineralised trends in addition to the Koné deposit, as shown in Figure 2 below.

In total, 26 exploration targets are located within the permitted mining area within 3 major trends (Gbongogo-Korotou Trend, Lokolo Trend and Bafretou-Niondje Trend) which are located near the planned haul road, and host potential for higher grade discoveries. On the exploration permits, a further 26 targets have been identified across 4 major trends (Gbongogo-Korotou Trend, Sissédougou Trend, Yere Trend and TZ4 Trend), which also hosts the potential for higher grade mineralisation. Exploration efforts are focused on both the mining permitted area, due to its potential immediate benefits, as well as on the exploration permit to the north given the lead time required from discovery to permitting. Management anticipates that a trucking distance of 75km would result in an impact of approximately 0.2 g/t Au on the cut-off grade, thereby supporting its strategy of targeting over 1 g/t Au discoveries which have the potential to displace 0.7 g/t Au material sourced from the Koné deposit.

[](https://mma.prnewswire.com/media/2523992/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

| Source for Indicated Resources stated in map above: Updated Feasibility Study press release dated January 16, 2024 available on Montage's website and on SEDAR+. See "Technical Disclosure". |

Strategic Exploration Methodology

The Company's exploration strategy utilises a well-established and tested methodology based on a systematic approach to prioritise exploration efforts by weighing geological prospectivity against potential operational and economic parameters along with strategic considerations.

As a starting point, a comprehensive review of all available geological data was conducted by analysing geological maps, cross sections, structural data, surface geology, geochemistry, geophysics, regolith mapping, alteration profiles, drilling data, cores, analysis of artisanal mining activity, outcrops, and other survey data. This data, supplemented by the additional data gathered during the first drilling programme of 2024, has resulted in the identification of 52 exploration targets across 6 mineralised trends, which represents a significant increase over the 35 exploration targets previously reported in July 2024 . This process of assessing the potential of each target is a continuous and reiterative process based on the availability of new geological data.

Given the large number of identified targets, and in order to align exploration efforts to corporate strategic objectives, targets were then screened and ranked based not only on geological potential (such as potential grade and potential size) but also based on potential operational and economic parameters (such as potential metallurgical properties, potential strip ratio, distance to the envisaged Koné processing plant, etc). Lastly, a short, medium and long-term workplan was developed based on the ranking of the targets and other strategic considerations, such as expected lead-time from discovery to permitting. As a result of this exercise, a workplan has been developed to achieve the short-term target of discovering more than 1 million ounces of additional Measured and Indicated Resources at a grade of over 1 g/t Au, which would be 50% higher compared to the current Koné deposit grade, by the time production commences.

Figure 3 below outlines the Koné exploration targets and their ranking according to their associated level of geological and engineering data.

[](https://mma.prnewswire.com/media/2523993/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

2024 Exploration Programme

2024's first drill campaign was completed at the end of July, totalling 30,170 metres at a cost of approximately US$4 million , with the goal of prioritizing key targets for the next drill programme. Priority was attributed to higher grade targets located within the mining permit area (in proximity to the haul road) and to high grade targets located within the exploration permit (due to the lead-time required to define resources and obtain the mining permit). The drill programme successfully confirmed mineralisation at all 14 targets which were drilled.

As detailed in Table 1 below, the 30,170-metre drill programme was completed across 1,206 holes, which comprised 19 Diamond Drilling ("DD") holes for 1,765 metres, 113 Reverse Circulation ("RC") holes for 11,193 metres, 342 Aircore holes for 11,872 metres, and 740 Auger holes for 5,340 metres.

Table 1: Recently completed drill program breakdown

The main objectives of the drilling programme varied by area, as detailed below:

Diouma North, Gbongogo South, Lokolo Main and Sissédougou (ANV) targets: Prove the continuity of mineralisation and determine their potential scale Bafretou 2, Sena, Niondje, Lokolo South 2 targets: Follow-up on historical intercepts to advance these targets through the exploration pipeline Sissédougou ( Koban North ) target: Re-interpret and confirm historical data Bafretou 3, Marahoué Gap, Gbongogo-Korotou Trend, Yere targets: Develop new targets along untested geochemical or structural trends

Notable intercepts from the ongoing 2024 drilling campaign include:

Gbongogo South : 9m at 5.01 g/t Au (incl. 1m at 40.70 g/t Au) and 13m at 1.53 g/t Au and 9m at 1.75 g/t Au Diouma North: 22m at 2.90 g/t Au, 17.45m at 2.74g/t Au, 14m at 8.04g/t Au and 23m at 1.52 g/t Au Lokolo Main: 12m at 6.60g/t Au, 8m at 5.56 g/t Au and 5m at 2.70 g/t Au Sissédougou / ANV : 51m at 2 g/t Au (incl. 1m at 18.86 g/t Au), 19m at 3.08g/t Au and 13m at 4.00 g/t Au (incl. 1m at 13.65 g/t Au) and 17m at 1.86 g/t Au and 23m at 2.30 g/t Au (incl. 1m at 12.02g/t Au) Yere North : 14m at 1.62g/t Au

Notable results are further detailed in Appendix 2 with full results available here .

A second 2024 drilling campaign, totalling 60,000 metres for an approximate cost of US$8 million , commenced mid-September. The drilling metreage is expected to be equally split between a systematic infill drill programme on selected advanced targets (with the goal of delineating resources by year-end) and drilling to continue to progress other targets. In addition, based on the progress being made to advance new targets towards resource delineation status and rig availability, Montage will also assess the potential to conduct a small step-out drill campaign at the Koné and Gbongogo deposits to further evaluate the continuity of the orebody.

DETAILS BY SELECTED TARGETS

_Gbongogo South confirms potential for Gbongogo mineral __resource extension _

As shown in Figure 4 below, Gbongogo South is situated approximately 250 metres south of the Gbongogo main pit and has direct access to the planned Koné-Gbongogo Main haul road, within the mining permit boundary. The first 2024 drill programme confirmed the continuity of mineralisation from surface up to 100 metres depth over a strike of over 300 metres. Mineralisation is lithologically constrained, mostly following the contact between the rhyolite-footwall contact and the graywacke-conglomerate hanging wall. Gbongogo South also shows localised diffusion of quartz-tourmaline veins which are associated with higher grade gold intercepts. Mineralisation remains open along strike and downdip.

[](https://mma.prnewswire.com/media/2523994/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

The first 2024 drilling programme successfully confirmed the potential for Gbongogo to extend further south as a result of significantly improving the definition of mineralisation. As shown in Figure 5 below, results were defined from orientated drill-holes perpendicular to the interpreted mineralised structures that enabled an interpretation of an estimated 40-metre wide corridor in which multiple mineralised zones occur. In Q4-2024, the drilling programme is expected to include systematic infill drilling on Gbongogo South with the objective of delineating a maiden mineral resource estimate. The additional holes aim to delineate extensions both along strike and down dip on known mineralisation.

[](https://mma.prnewswire.com/media/2523995/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

_Lokolo Trend shows potential to host multiple higher-grade __satellites _

The Lokolo Trend is located adjacent to the main haul road and within the fully permitted Koné-Gbongogo mining area. The Lokolo Trend, which follows the north-east trending Séguéla-Syama regional structure, has been previously explored returning higher-grade mineralised intercepts at Lokolo Main, in turn forming the basis for the first 2024 drill programme. Host rocks are a package of volcanic rocks including silicified rhyolite, andesites and foliated mafic volcanic schists. Higher grade mineralisation is associated with quartz-diorite intrusions plunging to the SE-SSE. Mineralisation within the Lokolo Trend remains open at depth and along strike, following a continuous 9km surface geochemical anomaly.

The first 2024 drilling programme explored 4 of a total of 8 targets in the Lokolo area, the most advanced of which, Lokolo Main, continued to provide higher-grade intercepts as shown in Figure 6 below.

[](https://mma.prnewswire.com/media/2523996/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

As shown in Figures 6 and 7, the first 2024 drilling programme confirmed that mineralisation is open along strike and regionally hosted in an interpreted NE/SW trending shear zone exhibiting strong foliation, sericite alteration and quartz veining. The second 2024 drilling programme includes systematic infill drilling over the central area of Lokolo Main aiming to extend mineralisation along strike and at depth with the objective that, with confirmatory results, a maiden resource can be delineated by year end.

[](https://mma.prnewswire.com/media/2523997/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

Sissédougou Trend returns promising higher-grade intercepts

Following the previous encouraging exploration results received on the Sissédougou Trend, the first 2024 drill programme continued to evaluate the potential of this target, returning further higher-grade intercepts. In particular, the Anomaly 5 target ("ANV") returned a series of high grade intercepts, whilst confirming the continuity of the mineralised trend along strike. The ANV mineralisation is structurally controlled, hosting an array of gold bearing quartz veins inside a sheared, sub-vertical package of siliclastic sediments. The results, as shown in Figure 8, supplement the historical drill results produced by La Mancha and Endeavour Mining between 2012 and 2017, and provide greater encouragement over the continuity of the mineralisation.

[](https://mma.prnewswire.com/media/2523998/Montage_Gold_CorpMONTAGE_GOLD_SETS_SHORT_TERM_DISCOVERY_TARGET.html)

Continued progress on the Gbongogo-Korotou, Bafretou-Niondje and Yere Trends

Earlier in the year the Company announced results from the Diouma North Target, with diamond drilling highlights including 17 metres at 2.74 g/t Au and 22 metres at 1.52 g/t Au. The Diouma North target will remain a priority target for the second 2024 drill campaign.

North of the Gbongogo and Diouma targets lies the adjoined Korotou trend (jointly classified in Figure 2 above and denoted as the Gbongogo-Korotou Trend). Initial prospectivity was identified using a combination of airborne VTEM imagery, regional geology and intrinsic understanding of the area's structural setting. However, during regolith mapping it was identified that the Korotou area is covered by both alluviums and a thick cuirasse interpreted as not in-situ. As a result, standard soil sampling campaigns are ineffective on the cover.

Earlier from Lundin Mining Corporation

MONTAGE GOLD CLOSES C$180 MILLION PRIVATE PLACEMENT 2024-08-14
MONTAGE GOLD UPSIZES BROKERED PRIVATE PLACEMENT TO C$180M 2024-07-17
/C O R R E C T I O N from source -- Montage Gold Corp./ 2024-07-16