Montage Gold looks to finance Kone

Stuart expects the company to raise US$180-200 million in equity, once the debt component and permitting are completed, with the hope the company's share price would be at a much higher level after these elements have been concluded.

The company may also include a streaming agreement to help reduce potential shareholder dilution. "A stream is likely to be a component as the streamers are beating each other up [to get business] with the terms they offer becoming really attractive," said Stuart.

Montage is looking to develop an open pit mining operation with a carbon-in-leach plant an initial 15-year life to produce more than 300,000ozpa, with a sub-$1000/oz all-in sustaining cost. The company is also open to undertaking the development as a joint venture. In this scenario, shareholders Perseus Mining and Endeavour Mining could be the most logical partners.

A boost to the project is expected to come from the Gbongogo Main satellite deposit which hosts around 500,000oz grading 1.4gpt, and could add 30,000-50,000ozpa to Kone's output. "This has the same process flowsheet as Kone, which is a real advantage," said Stuart.

Once the Kone open pit is exhausted in year nine of operation, Montage aims to repurpose it for in-pit tailings disposal, which means a smaller tailings storage facility footprint. "This is a new concept in Cote d'Ivoire, and so we are working with the government to educate them about this," said Stuart.

Regional risk

Stuart said Cote d'Ivoire is not experiencing the political turmoil or Jihadist insurgency seen in some of its Western African neighbours. "Coastal states tend to have a different dynamic than the inland Sahel states. The country has been stable for the past 10-12 years, and several mines have been built during that time," he said.