(Ecofin Agency) - Canada's Montage Gold has discovered a large gold deposit in Côte d'Ivoire, capable of producing over 100 tonnes of gold over 16 years. The mine, called Koné, is expected to start operating in 2027.

The Ivorian government granted on July 10 two operating permits for the Koné project, a gold deposit spanning the Dianra and Kani departments. Koné will be the country’s biggest gold mine and the third-largest in West Africa. 

The project is expected to create around 2,500 jobs during construction and 1,000 jobs during operation. Montage Gold, its owner, should also invest CFA19.8 billion in local development.

The two operating permits for the project are valid for 28 years, combined. They can be extended if new gold reserves are found. 

"We are delighted to have received our mining permit, which represents an important milestone in the development of our Koné [...] project. We look forward to continuing to rapidly unlock value for our stakeholders as we advance the Koné project towards a construction launch scheduled for Q1 2025," commented Martino De Ciccio, CEO of Montage Gold.

Over 100 tons added to Cote d’Ivoire’s output

The first of the two recently granted permits allows Montage to develop its first mine in Cote d’Ivoire. The next step is thus fund mobilization, which the Canadian firm expects to complete by the end of this year. 

A feasibility study released in January 2024 estimates that $712 million are needed to develop the mine. The same study indicates that the deposit could deliver an average of 349,000 ounces of gold per year over the first eight years, with a peak of 378,000 ounces in the third year. 

Production at Koné should begin in 2027. It will join other projects launched in recent years. Such projects include Abujar, Séguéla, and Lafigué. The first two were launched in 2023 and the third in June 2024. 

Cote d’Ivoire produced 51 tons of gold in 2023, against 48 tons in 2022. This year, it is expected to produce 55 tons. 

Located 350 km from the Ivorian capital Yamoussoukro, the Koné project is fully owned by Montage Gold. However, the Ivorian mining code provides for a 10% free stake for the State when the mining permit is granted.

Emiliano Tossou