Beaufor Mine

Property Description

Monarques holds a 100% interest in the Beaufor Mine, which includes two mining leases, a mining concession and 23 mining claims covering an area of 5.9 km2. The mine is located at about 20 kilometres northeast of the town of Val-d’Or, in the Abitibi-East township, in the Province of Quebec.

For the fiscal year ended December 31, 2016, the Beaufor Mine produced 19,562 ounces of gold. The ore is processed at Monarques’ 100%-owned Camflo mill, located 50 km from the mine. The Beaufor Mine is an underground mine, using long-hole and room-and-pillar.

Reserves

Table of estimated mineral reserves

Notes

  • The independent and qualified person for the mineral reserve estimate, as defined by NI 43-101 is Laurent Roy, Eng. (OIQ No. 109779), of InnovExplo Inc. The effective date of the estimate is September 30, 2017.
  • The economic viability of the mineral reserve is proven.
  • Results are presented including dilution. Dilution varies from 10% to 15% for the long-hole stopes based on the position of the dyke, and is 0% for the room-and-pillar stopes as the stope width is less than 2.40m.
  • Results are presented including mining recovery rates. Mining recovery varies from 85% to 90% for long-hole stopes based on the position of the dyke and is 90% for room-and-pillar stopes.
  • The metallurgical gold recovery at the Camflo mill is 98%.
  • The mineral reserve was compiled using cut-off grades of 3.95 g/t Au (long-hole) to 4.66 g/t Au (room-and-pillar). Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • A constant specific gravity value of 2.75 t/m3 was used.
  • Ounce (troy) = metric tons x grade / 31.1035. Calculations used metric units (metres, tonnes, and g/t).
  • The mineral reserve was estimated using a long-term gold price of CAD 1,638.40 per ounce (metal price of USD 1,280 per ounce and an exchange rate 1.28 CAD/1 USD).
  • Tonnage and ounces estimates were rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Form 43-101F1.
  • The mineral reserve estimate is compliant with CIM standards and guidelines.
  • InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing, or other relevant issue that could materially affect the mineral reserve estimate.

Resources

Estimated mineral resource table, exclusive of mineral reserve

Notes

  • The independent and qualified person (“QP”) for the Mineral Resource Estimate as required by NI 43101 is Carl Pelletier, P.Geo. (OGQ 384), employee of InnovExplo Inc. The effective date of the estimate is September 30, 2017.
  • Mineral resources which are not mineral reserves do not have demonstrated economic viability.
  • Mineral reserves have been subtracted from mineral resources.
  • Results are presented in-situ and undiluted. The reported mineral resource is considered by the QP to have reasonable prospects for underground economic extraction.
  • The estimate includes 63 mineralized zones in the Beaufor mine.
  • Mineral Resources are estimated at variable cut-off grades ranging from 3.95 g/t Au (long-hole) to 4.66 g/t Au (room-and-pillar). Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • A specific gravity value of 2.75 t/m3 was used.
  • A minimum true vein width of 2.40 m was used.
  • Capping of high-grade values was done at 68.5 g/t Au for zones 8, B, M, M1 and Q, while all other zones were capped at 34.25 g/t Au and drill hole intersections were capped at 16.5 g/t over 2.40 m. Capping was done on raw assays.
  • The estimation method was polygonal on cross section.
  • Polygons for measured resources extend 8 m above and below development and up to 10 m laterally. Polygons for indicated resources do not extend more than 20 m from drill hole intercepts, along dip and along strike. Polygons for inferred resources do not extend more than 40 m from drill hole intercepts, along dip and along strike; they are generated where the drill spacing generally ranges from 20 m to 40 m and/or in areas of isolated drill holes where mineralization is interpreted to be the extension of known mineralized zones.
  • Ounce (troy) = metric tons x grade / 31.1035. Calculations used metric units (metres, tonnes, g/t)
  • Mineral Resources are estimated using a long-term gold price of CAD 1,638.40 per ounce (metal price of USD 1,280 per ounce and an exchange rate of 1.28 CAD/1 USD).
  • Tonnage and ounce estimates were rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Form 43-101F1.
  • CIM definitions and guidelines were followed in estimating mineral resources.
  • InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate.

Geology

The Beaufor deposit is included in the Bourlamaque granodiorite. Gold mineralization occurs in veins associated with shear zones that moderately dip south. The mineralization is associated with quartz-tourmaline veins resulting from the filling of shear and extension fractures. The gold-bearing veins show a close association with mafic dykes intruding on and undercutting the granodiorite. The dykes seem to have influenced the structural control of the gold-bearing veins.

Mineralization

Gold-bearing veins at the Beaufor Mine consist of quartz-tourmaline-pyrite veins, typical of Archean epigenetic lode gold deposits, that cross-cut the Bourlamaque Batholith. Mafic dykes that predate the mineralization are associated with shear- hosted gold-bearing veins. Shallowly dipping extensional gold-bearing veins are commonly observed at the Beaufor Mine. Shear zones striking N70o and dipping steeply to the southwest control the opening and gold enrichment of veins.

All the gold-bearing veins are contained in a strongly-altered granodiorite in the form of chlorite-silica forming anastomosing corridors of 5 m to 30 m in thickness. The veins at the Beaufor Mine form sometimes panels of more than 300 m in length by 350 m in height. The thickness of the veins varies from 5 cm to 5 m, but generally, the thickness of the quartz veining system 30 cm to 120 cm. The zones are limited by the Beaufor fault (N115o/65o-75o) and by a parallel system of shears (N70o/sub vertical).