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Montage Gold shares jump after high-grade drill results at Didievi
Drilling at the Blaffo Guetto deposit returned 20.97 grams gold per tonne over 15 metres and 8.46 grams per tonne over 27.4 metres, setting up a $13.5 million follow-up program.
Montage Gold said it is seeing growing confidence in the Didievi project in Côte d’Ivoire after drill results at its Blaffo Guetto deposit. The company said the stock rose following new exploration work that it believes strengthens the case for what could become its next gold development asset.
In the latest results, hole BGDD26-090 cut 15 metres grading 20.97 grams gold per tonne from 127 metres downhole, and about 13 metres grading 4.75 grams gold from about 168 metres. A second hole, BGDD26-093, returned 27.4 metres grading 8.46 grams gold from 184 metres depth, with both holes part of a recently completed 40,000 metre drilling program.
Montage plans to advance the project with a follow-up program covering 60,000 metres, estimated to cost $13.5 million, and said it is scheduled to be completed by year end. The company also said environmental and social impact assessment studies are already under way as it looks to fast track development.
Shares rose 6.5% to C$16.44 in Toronto, valuing the miner at about C$6.6 billion, according to Mining.com. Analyst Ovais Habib at Scotia Capital estimated Didievi could produce about 200,000 ounces of gold annually once operations begin, and Montage said mineralization at Blaffo Guetto remains open along strike and at depth.
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