Property Description

Monarch Gold holds a 100% interest in the Fayolle property, an advanced high-grade gold project. The property consists of 39 mineral claims covering an area of 1,373 hectares (14 km²) in Aiguebelle and Cléricy townships, approximately 35 km northeast of Rouyn-Noranda, Quebec.

Ressource Estimate (August 2019)

Fayolle 2019 mineral resource estimate for a combined pit-constrained and underground scenario at cut-off grades of 0.9 g/t Au (in-pit) and 2.2 g/t Au (underground)

Notes to the mineral resource table:

  1. The independent and qualified person for the mineral resource estimate, as defined by NI 43101, is Alain Carrier, M.Sc., P.Geo. (InnovExplo), and the effective date of the estimate is August 30, 2019.
  2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
  3. The mineral resource estimate follows 2014 CIM definitions and guidelines for mineral resources.
  4. Results are presented in situ and undiluted and considered to have reasonable prospects for economic extraction.
  5. The estimation encompasses three mineralized zones and a dilution envelope with a minimum true thickness of 2.5 m using the grade of the adjacent material when assayed or a value of zero when not assayed.
  6. High-grade capping of 40 g/t Au (Zones 1 and 2), of 90 g/t Au (Zone 3) and of 5 g/t Au (dilution envelope) were applied to assay grades prior to compositing grade for interpolation using an Inverse Squared Distance (ID2) interpolation method based on 1.5 m composite and block size of 5 m x 5 m x 5 m, with bulk density values of 2.82 g/cm3 applied to the rocks and of 2.0 g/cm3 applied to the overburden.
  7. All blocks were classified as Indicated resources. Indicated corresponds to a densely drilled area (within 20 to 25 m spacing) interpolated in pass 1 using a minimum of 2 drill holes. Indicated blocks have an average composite closest distance of 10 m and have used a minimum of 10 composites during interpolation.
  8. The estimate is reported for a potential scenario combining pit-constrained and underground at cut-off grades of 0.9 g/t Au (in-pit) and 2.2 g/t Au (underground). The cut-off grades were calculated using a gold price of USD1,300/oz, a CAD:USD exchange rate of 1.33, and the following parameters (CAD): (a) Pit-contrained scenario: mining cost $4.94/t; processing cost $27.00/t; G&A $4.00/t, pit slopes of 45° (rock) and of 30° (overburden) during Whittle optimization; (b) Underground scenario (CAD): mining cost $65.00/t; processing cost $27.00/t; G&A $8.00/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).  
  9. The number of metric tons was rounded to the nearest hundred and the metal contents are presented in troy ounces (tonne x grade / 31.10348) rounded to the nearest tenth.
  10. InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue not reported in this Technical Report that could materially affect the mineral resource estimate.

Cut-off grade sensitivity analysis on the Indicated resources for the pit-constrained portion

Cut-off grade sensitivity analysis on the Indicated Resources for the underground portion

Fayolle 2019 resource block model