Expected to emerge as Côte d'Ivoire's largest gold mine, the Koné project by Canadian Montage Gold has the potential to yield more than 100 tonnes of gold. The mine's production will be subject to royalties held by Barrick and Endeavour, two companies involved in gold mining within the country.

Canada's Montage Gold has opted to acquire half the royalties of Barrick Gold and Endeavour on the projected output of the Koné gold mine in Côte d'Ivoire. In a press release dated November 21, Montage confirmed it paid $10 million to complete this acquisition. Two years ago, in November 2022, Montage bought exploration permits next to its Koné project, where Barrick and Endeavour retained royalties of 1.4% and 0.6%, respectively. Barrick now holds a 0.7% royalty, while Endeavour's has a 0.3% royalty. 

“We are pleased to have the strategic and financial flexibility to exercise our right to repurchase a 1.0% royalty on our Koné project[...]. We believe that this investment offers the opportunity to significantly enhance the value unlocked by our exploration efforts, as many of the identified exploration targets are covered by the royalty repurchased,” commented Montage CEO Martino De Ciccio.

According to a 2024 feasibility study, the Koné project is set to yield 3.57 million ounces (101 tonnes) of gold over its 16-year lifespan. Montage predicts annual production of over 300,000 ounces in the first decade of activity. This would add one million ounces to its reserves by the time production starts in 2027. If this strategy works out, earnings from the royalty buyback could grow.

Besides the royalties, Barrick also benefits from being a shareholder in Montage, just like Zijin Mining from China. The Ivorian government holds a free 10% interest in the mine and can receive up to a 6% royalty on gold production.

Emiliano Tossou