Strong contribution from custom milling operations
Montreal, Quebec, Canada, May 10, 2019 – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) reported its results today for the third quarter ended March 31, 2019. Amounts are in Canadian dollars unless otherwise indicated.
- Forecast average production of 142,000 ounces of gold per year for 11 years
- Pre-tax NPV of $522 million
- Pre-tax IRR of 23.6%
- Cash production cost of US$550 per ounce
“As I said not so long ago, this slowdown in our operations is mainly due to the lower production rate at the Beaufor mine, which we reassess on a month-to-month basis, as well as maintenance work at the Camflo mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch.
“We continue to focus our efforts on advancing our flagship Wasamac project, a potential game-changer for Monarch and a project that continues to generate significant interest in North America and abroad. We are currently looking at several options and discussions are ongoing. We are also planning our next work programs for the Croinor Gold and McKenzie Break projects, which both returned excellent 2018 drill results. Finally, we are proud to have succeeded in acquiring the block of shares of Unigold, whose main asset, the Neita concession, has excellent high-grade exploration potential.”
Summary of financial results
Key operating statistics
(1) The average selling prices for the nine-month period ended March 31, 2019, would be $15 higher ($32 higher for the same period ended March 31, 2018) if gold deliveries (861 ounces for the quarter) to Auramet International LLC in connection with deferred revenues for the period 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 quarter ended March 31, 2019.
The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.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 close to 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, the Croinor Gold (see video), 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.