Montreal, Quebec, Canada, September 27, 2019 – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) reported its results today for the fourth quarter and fiscal year ended June 30, 2019. Amounts are in Canadian dollars unless otherwise indicated.
“The favourable gold price environment and a smaller workforce enabled us to have a solid quarter on the operations front,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “We believe that this favourable gold price environment should also have a positive impact on Monarch’s valuation given our strong gold mining assets, namely eight projects with a combined NI 43-101 compliant resource of more than 4 million ounces of gold and two mills with a total capacity of 2,350 tonnes per day, as well as a significant portfolio of exploration projects and mining companies’ securities. In addition, our main Wasamac project generated considerable interest from potential strategic partners in the last quarter, and again at the Beaver Creek mining conference in Colorado in September, where we met with over 70 mining and finance companies.”
“Although our production activities at the Beaufor mine and Camflo mill are temporarily suspended, the favourable gold price environment could change our plans in the short and medium term. We have implemented a strategy for developing our other advanced gold projects, namely Beaufor, Croinor Gold, Fayolle and McKenzie Break, which could eventually provide feed for our Camflo and Beacon mills. In line with this, we recently started a new drilling program on McKenzie Break, which we consider one of the most advanced of the group given its high-grade near-surface resources. We are confident that our current and future efforts will bring us closer to our ultimate goal of becoming a 100,000 to 200,000 ounce-per-year gold producer,” concluded Mr. Lacoste.
Summary of financial results
Key operating statistics
(1) The average selling prices for the year would be $14 higher ($28 higher in fiscal 2018) if gold deliveries (861 ounces in fiscal 2019 and 2,583 ounces in fiscal 2018) to Auramet International LLC in connection with deferred revenues for the year had been recognized at market price on the date the agreement was entered into on October 2, 2017, instead of at the recorded price, representing the amounts received from future gold production divided by the ounces to be delivered.
(2) Production cash cost is a non-IFRS measure of financial performance without a standard meaning under IFRS. It may therefore not be comparable to a similar measure presented by another company. See "Non-IFRS measures" in the Corporation's management discussion and analysis for the year ended June 30, 2019.
The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, Eng., the Corporation’s qualified person under National Instrument 43-101.
ABOUT MONARCH GOLD CORPORATION
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining company focused on pursuing growth through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns over 300 km² of gold properties (see map), including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor mine, Croinor Gold (see video), Fayolle, McKenzie Break and Swanson advanced projects and the Camflo and Beacon mills, as well as other promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.
Table 1 - Monarch combined gold resources
1 Source: Technical Report on the Wasamac Project, Rouyn-Noranda, Québec, Canada, Tudorel Ciuculescu, M.Sc., P.Geo.,October 25, 2017, Roscoe Postle Associates Inc.
2 Source: Monarques prefeasibility study (January 19, 2018) and resource estimate (January 8, 2016)
3 Source: NI 43-101 Mineral Resource estimate of the Fayolle Project, August 30, 2019, Alain Carrier, P.Geo., M.Sc., ofInnovExplo Inc.
4 Source: NI 43‐101 Technical Report on the McKenzie Break Project, April 17, 2018, Alain-Jean Beauregard, P.Geo., andDaniel Gaudreault, Eng., of Geologica Groupe-Conseil Inc. and Christian D’Amours, P.Geo., of GeoPointCom Inc.
5 Source: NI 43‐101 Technical Report on the Swanson Project, June 20, 2018, Christine Beausoleil, P.Geo., and AlainCarrier, P.Geo., M.Sc., of InnovExplo Inc.
6 Source: NI 43-101 Technical Report on the Mineral Resource and Mineral Reserve Estimates of the Beaufor Mine as atSeptember 30, 2017, Val-d’Or, Québec, Canada, Carl Pelletier, P. Geo. and Laurent Roy, Eng.
7 Source: MRB et Associés (January 2015)
8 Source: NI 43-101 Mineral Resource estimate of the Monique Project as at August 28, 2019, Merouane Rachidi, Ph.D.,P.Geo., and Claude Duplessis, Eng. of GoldMinds Geoservices.
9 Probe Metals Inc. may earn a 60% interest in the Monique property by spending an aggregate of $2,000,000 onexploration before January 2021.
10 Numbers may not add due to rounding.