Kone

Operator
Montage Gold

Location
Côte d'Ivoire

Stream
au

Primary Metal
au

Project Overview

The Koné Project is located approximately 350 kilometres north-west of Yamoussoukro, the political capital of Côte d’Ivoire, and approximately 600 kilometres north-west of Abidjan, the commercial capital of the country.

The Project consists of the Koné and Gbongogo deposits that are hosted in quartz-diorite intrusions that were emplaced within dilational bends of a regional NNE-SSW oriented shear zone within Birimian aged volcaniclastic rocks. Mineralization at the Koné deposit is generally disseminated in fine-graded pyrite, with higher grades associated with high-density swarms of 2 mm to 5 mm thick, foliation-parallel, quartz veinlets containing fine grained sulfide. The Gbongogo deposit generally hosts higher grade mineralization relative to Koné. It correlates with the presence of a quartz and/or tourmaline stockwork and alteration selvages within a plunging quartz diorite that has undergone brittle deformation.

Both deposits will be mined by open pit methods with the Koné deposit exploited by a smaller North Pit and larger South pit and Gbongogo deposit by a single pit. Processing will be at a nominal rate of 11.0 Mtpa through a conventional Leach-CIP plant. Tailings will be deposited initially in a Tailings Storage Facility (TSF), confined by a cross valley embankment, and when mining in the Koné South Pit is completed deposited in-pit.

Stream Details

Date of Contract 23-Oct-24
Term Life of Mine
Stream 19.5% of Au until 400 koz, then 10.8% of Au until an additional 130 koz, then 5.4% of Au for life of mine thereafter
Upfront Consideration $625M
Per Unit Production Payment 20% of spot price of gold*

*For the first five years after the Precious Metals Purchase Agreement (“PMPA”) is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100/oz or greater than $2,700/oz. For example, if spot gold is $3,200 per ounce, Wheaton’s production payment would be $675 per ounce, equating to 21% of the spot price. This price adjustment mechanism expires on the fifth anniversary of the PMPA, after which the production payment will be equal to 20% of the spot price going forward.