The report confirms the profitability of the Beaufor mine
Montreal, Quebec, Canada, December 28, 2017 – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7)is pleased to report the results of the updated mineral resource and reserve estimates for its wholly-owned Beaufor mine. The mineral resource and reserve estimates were prepared by InnovExplo inc., in collaboration with Beaufor mine personnel and the Corporation in accordance with NI 43-101. Unless otherwise indicated, all amounts in this press release are presented in Canadian dollars.
The Beaufor mine is located approximately 20 km northeast of Val-d'Or, in the province of Quebec. The mine has been in operation since 1930. The ore from the Beaufor mine is processed at the Camflo mill, which has a 1,600 tonne-per-day milling capacity. The mill is operated by Usine Camflo inc., also wholly-owned by Monarques.
“The outcome of the technical report is positive for Monarques, as it confirms the profitability of the Beaufor mine,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “Furthermore, the report does not consider the Camflo mill's current custom milling activities, which could enhance the mine’s profitability. We are also continuing to assess our options for extending the mine life through targeted drilling programs on the most promising identified zones.”
Key economic parameters
Based on a gold price of $1,638/oz, reflecting a gold price of US $1,280/oz and an exchange rate of 1.28 CAD/1 USD, the study demonstrates that the Beaufor mine could generate an after-tax net present value of $4.41 million at a 5% discount rate with a total production of 30,018 ounces over the mine life. Operating costs would total $41.5 million and the total project cost would be $43.0 million. The average production cost would be $1,433/oz.
Table of economic parameters
Table of estimated mineral reserves
Estimated mineral resource table, exclusive of mineral reserve
A technical report on the Beaufor mine’s mineral resource and reserve estimates, as presented above, will be filed today, Thursday, December 28, 2017, on SEDAR following the publication of this press release.
The technical content of this press release was reviewed and approved by Mr. Marc-André Lavergne, Eng., a qualified person according to NI 43-101.
The mineral resource estimate of the Beaufor mine was prepared under the supervision of Mr. Carl Pelletier, B.Sc. Geo., an employee of InnovExplo Inc. Mr. Pelletier is an independent qualified person according to NI 43-101 and has reviewed and approved the technical content of this release, which corresponds to the mineral resource estimate of the technical report. The mineral reserve estimate of the Beaufor mine was prepared by Mr. Laurent Roy, Eng., an employee of InnovExplo Inc. Mr. Roy is an independent qualified person according to NI 43-101 and has reviewed and approved the technical content of this release, which corresponds to the mineral reserve estimate of the technical report.
ABOUT MONARQUES GOLD CORPORATION
Monarques Gold Corp (TSX-V:MQR) is an emerging gold producer 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 Beaufor mine, the Croinor Gold (see video), Wasamac, McKenzie Break and Swanson advanced projects, and the Camflo and Beacon mills, as well as six promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill. Monarques enjoys a strong financial position and has more than 150 skilled employees who oversee its operating, development and exploration activities.
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarques’ actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.