Preliminary Economic Assessment for the Koné Gold Project Côte D'ivoire Ni
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PRELIMINARY ECONOMIC ASSESSMENT FOR THE KONÉ GOLD PROJECT CÔTE D’IVOIRE NI 43-101 TECHNICAL REPORT Report Date: 7 June, 2021 Effective Date: 25 May, 2021 Prepared for: MONTAGE GOLD CORP 2000 – 885 West Georgia Street Vancouver, BC V6C 3E8 Prepared by: Leve 2, 60 Leichhardt Street, Spring Hill Brisbane Queensland 4000 Australia 3265 Kone PEA 43-101 Report Rev 0a.docx Revision History Rev Date Description 0 June 7, 2021 Issued for Use 3265 Kone PEA 43-101 Report Rev 0a.docx Page 1 Date and Signature Page The independent Qualified Person (within the meaning of NI 43-101) for the purposes of this report is Dr Geoff Duckworth, representing Lycopodium. Further review as detailed below has been undertaken by Jon Abbott, Mike Hallewell, Pieter Labuschagne, Carl Nicholas, Chris Reardon and Ed Tuplin. The author has undertaken an extensive review of Montage Gold's Kone Gold Project technical and economic data and has reviewed Montage Gold's contributions to this report. The overall report entitled Preliminary Economic Assessment Technical Report, Kone Gold Project, Cote d'Ivoire was collated and signed by the following author: Signed, this 7th June, 2021. Dr. GeoffDuckworth B.Eng (Chem), M.Eng.Sc, PhD, FIChemE, MIEAust, FAuslMM, RPEQ 2702 Study Manager Lycopodium Minerals Pty Ltd Other discipline specific QPs were: • Jonathon Abbott: Consulting Geologist, MPR Geological Consultants Pty Ltd, BASc Appl. Geol, MAIG. • Mike Hallewell: Consultant, MPH Minerals Consultancy Ltd., B.Sc, FIMMM, FSAIMM, FMES, C.Eng. • Pieter Labuschagne: Consultant, GCS (Pty) Ltd, M.Sc Hydrogeology (Pr.Sci.Nat 400386/11). • Carl Nicholas: Consultant, Mineesia Ltd., M.Sc, B.Sc (Hons), DIC, CEnv, MIMMM. • Chris Reardon: Country Manager, Orea Gold Inc., B.Sc • Ed Tuplin: Consultant, Knight Piesold Pty. Ltd., B.Sc, M.Sc, MAuslMM (CP), RPEQ (10166) Signed QP certificates are located at the end of the report. 3265 Kone PEA 43-101 Report Rev 0a.docx Page 2 TABLE OF CONTENTS 1. SUMMARY ....................................................................................................................... 3 1.1 Introduction ............................................................................................................................... 3 1.2 Property Description and Ownership......................................................................................... 3 1.2.1 Property Description ............................................................................................................. 3 1.2.2 Ownership ............................................................................................................................. 3 1.3 Accessibility, Climate, Local Resources, infrastructure and Physiography ................................ 3 1.4 Geology and Mineralization ....................................................................................................... 4 1.5 Exploration and Resource Definition ......................................................................................... 4 1.6 Metallurgical Testing .................................................................................................................. 5 1.7 Mineral Resource Estimate ........................................................................................................ 5 1.8 Mining ........................................................................................................................................ 6 1.9 Recovery Method ....................................................................................................................... 7 1.10 Project Infrastructure ................................................................................................................. 8 1.10.1 Water Supply ......................................................................................................................... 8 1.10.2 Power Supply ........................................................................................................................ 9 1.10.3 Tailings Storage Facility ......................................................................................................... 9 1.11 Market Studies and Contracts .................................................................................................. 10 1.12 Environmental .......................................................................................................................... 10 1.13 Capital and Operating Costs ..................................................................................................... 11 1.13.1 Capital Cost ......................................................................................................................... 11 1.13.2 Operating Cost Mining ........................................................................................................ 11 1.13.3 Operating Cost Process and Infrastructure ......................................................................... 12 1.14 Economic Analysis .................................................................................................................... 12 1.15 Recommendations ................................................................................................................... 13 1.15.1 Environmental ..................................................................................................................... 13 1.15.2 Geology ............................................................................................................................... 14 1.15.3 Mining ................................................................................................................................. 14 1.15.4 Metallurgical Testwork ....................................................................................................... 14 1.15.5 Process ................................................................................................................................ 14 1.15.6 Infrastructure ...................................................................................................................... 14 2. INTRODUCTION .............................................................................................................. 16 2.1 Basis of Technical Report ......................................................................................................... 16 2.2 Property Inspections by QPs .................................................................................................... 16 2.3 Effective Dates ......................................................................................................................... 16 2.4 Abbreviations ........................................................................................................................... 17 3. RELIANCE ON OTHER EXPERTS ........................................................................................ 19 4. PROPERTY DESCRIPTION AND LOCATION ........................................................................ 20 4.1 Property Location ..................................................................................................................... 20 4.2 Mineral Tenure ......................................................................................................................... 20 4.2.1 Mineral Tenure Framework ................................................................................................ 20 4.2.2 Project Mineral Tenure and Ownership .............................................................................. 21 5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, PHYSIOGRAPHY ........... 25 5.1 Accessibility .............................................................................................................................. 25 5.2 Climate ..................................................................................................................................... 25 5.3 Local Resources, Infrastructure ................................................................................................ 25 5.4 Physiography ............................................................................................................................ 25 3265 Kone PEA 43-101 Report Rev 0a.docx Page |i 6. HISTORY ........................................................................................................................ 27 7. GEOLOGICAL SETTING AND MINERALIZATION ................................................................. 28 7.1 Regional Geological Setting ...................................................................................................... 28 7.2 Koné Exploration Permit Geological Setting ............................................................................ 29 7.3 Koné Deposit Geological Setting and Mineralization ............................................................... 30 7.3.1 The Diorite Sequence .......................................................................................................... 32 7.3.1.1 Coarse Grained Diorite (CDI) ............................................................................................... 32 7.3.1.2 Fine Grained Diorite (FDI) ................................................................................................... 33 7.3.1.3 Black Siliceous Diorite (BSD) ............................................................................................... 34 7.3.2 Hanging Wall Geology ........................................................................................................