MONARCH MINING CORPORATION
(“
Monarch” or
the “
Corporation”) (TSX: GBAR) (OTCQB:
GBARF) is pleased to report additional results from the 2022
drilling program on its wholly-owned McKenzie Break gold project,
located 25 kilometres north of the Corporation’s wholly owned
Beacon mill.
The 2022 drilling program on the McKenzie Break
property totaled 16,104 metres in 53 holes. Today, Monarch is
reporting the results from an additional 13 holes totalling 4,523
metres (see Figure 1, Table 1 and 2). Assays are pending for the
remaining 17 holes of this drill program.
The drilling program was aimed at expanding the
size of the 2021 mineral resource estimate (“2021 MRE”), including
the current pit shell in the up-dip direction (to the west and
south), and the underground resource to the east and north. The
mineralized envelope currently measures 1,100 metres by 600 metres
and has been tested down to a vertical depth of 400 metres.
The most significant intersection was found in
hole MK-22-348, which returned 1.77 g/t Au over 31.0
m, including higher grade sections of 2.83 g/t Au
over 15.6 m and 8.42 g/t Au over 3.0 m
along the southeast limit of the current proposed pit shell.
Drill hole MK-22-363, located at the northeast
limit of the deposit, intersected 1.54 g/t Au over 14.91
m, including a high grade intercept of 9.09 g/t Au
over 1.48 m. This hole confirms that gold mineralization
remains open to the northeast.
Drill hole MK-22-342 intersected 1.33
g/t Au over 9.35 m from 8.0 m to 17.35 m down the hole,
confirming the near-surface gold mineralization continuing to the
south. The drill hole is located 70 metres south of the pit shell
limit and demonstrates the potential to extend the pit shell to the
south and southwest.
Drill hole MK-22-367 intersected 8.54
g/t Au over 1.40 m and 8.99 g/t Au over
1.0 m.
Since the publication of the 2021 MRE by
Geologica and GoldMinds (see Table 3), Monarch drilled a total of
41,465 m in 121 drill holes. The holes are relatively shallow
and were primarily drilled at the outer edge of the proposed pit
shell limits and in the area of the underground mineral resource
blocks. This drilling has confirmed that the pit shell and
underground mineral resource can be expanded beyond the limits
defined in the 2021 MRE.
“The known limits of the McKenzie Break
mineralization continue to be extended near-surface and at depth as
per our geological model, confirming that the proposed pit limits
can be expanded,” said Jean-Marc Lacoste, President and Chief
Executive Officer of Monarch. “We expect the remaining drill assays
will continue to give positive results and further expand the known
mineralization.”
Drilling and Quality Control
Drill results are obtained by sawing the drill core into equal
halves along its main axis and shipping one of the halves to ALS
Canada or AGAT Laboratories in Val-d’Or, Quebec, for assaying. The
samples are crushed, pulverized and assayed by fire assay, with an
atomic absorption finish. Samples exceeding 3 g/t Au are re-assayed
using the gravity method and samples containing visible gold are
assayed using the metallic screen method. Monarch uses a
comprehensive QA/QC protocol, including the insertion of standards,
blanks and duplicates.
The technical and scientific content of this
press release has been reviewed and approved by Louis Martin,
P.Geo., the Corporation’s qualified person under National
Instrument 43-101.
About
MonarchMonarch Mining Corporation (TSX: GBAR)
(OTCQB: GBARF) is a gold mining company that owns four projects,
including the Beaufor Mine, which is currently on care and
maintenance and has produced more than 1 million ounces of gold
over the last 30 years. Other assets include the Croinor Gold,
McKenzie Break and Swanson properties, all located near Monarch’s
wholly owned Beacon Mill with a design capacity of 750 tpd. Monarch
owns 29,504 hectares (295 km2) of mining assets in the prolific
Abitibi mining camp that host a combined measured and indicated
gold resource of 666,882 ounces and a combined inferred resource of
423,193 ounces.
Forward-looking statements All
statements, other than statements of historical fact, contained in
this press release including, but not limited to those describing
the timeline of the initiatives described in this press release,
those relating to the intended use of proceeds of the Offering, the
final approval of the Toronto Stock Exchange in connection with the
Offering, the entering into or more sale agreements, debt
settlement agreements, merger or other combination business
agreements, the Corporation’s commitments and initiatives outlined
in the press release, the intended results of the initiatives
described in this press release, the positive impact of the
foregoing on project economics, and generally those statements
which are discussed under the “About Monarch” paragraph and
elsewhere in the press release which essentially describe the
Corporation’s outlook and objectives, constitute “forward-looking
information” or “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of Canadian, and
are based on expectations, estimates and projections as of the time
of this press release. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by the Corporation as of the time of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. These
estimates and assumptions may prove to be incorrect.
Forward-looking statements are subject to known
or unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the
forward-looking statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the Corporation's ability to continue as a
going concern, the Corporation being a going concern able to
realize its assets and discharge its liabilities in the normal
course of business as they come due into the foreseeable future,
the generation of interest for its review of a range of
alternatives, in either the sale of part or all of the Company or
its assets, a merger or other business combination with another
party, a potential investment in Monarch, a debt restructuring, or
other strategic initiatives with the goal of maximizing return in
respect of the Company’s assets, the ability of the Corporation to
successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the
availability of financing or financing on favorable terms for the
Corporation, the business conditions of the Corporation will not
change In a materially adverse manner, expectations that the
business of the Corporation will continue in the ordinary course,
litigation as well as cash flow and capital structure risks and
general business risks. A further description of risks and
uncertainties can be found in Monarch's Annual Information Form
dated September 28, 2022, including in the section thereof
captioned “Risk Factors”, which is available on SEDAR at
www.sedar.com. Unpredictable or unknown factors not discussed in
this Cautionary Note could also have material adverse effects on
forward-looking statements.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
manuals of the Toronto Stock Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FOR MORE INFORMATION:
Jean-Marc Lacoste |
1-888-994-4465 |
President and Chief Executive
Officer |
jm.lacoste@monarchmining.com |
|
|
Mathieu Séguin |
1-888-994-4465 |
Vice President, Corporate
Development |
m.seguin@monarchmining.com |
www.monarchmining.com
Figure 1: McKenzie Break Significant
Intervals from Press Release
Table 1: McKenzie Break Assay Results
and Significant Intervals
Hole |
From (m) |
To (m) |
Width (m)* |
Au (g/t) |
MK-22-339 |
31.00 |
31.50 |
0.50 |
2.67 |
|
115.00 |
115.50 |
0.50 |
2.74 |
|
119.00 |
120.00 |
1.00 |
2.11 |
MK-22-342 |
8.00 |
17.35 |
9.35 |
1.33 |
Incl. |
16.50 |
17.35 |
0.85 |
4.18 |
|
58.00 |
60.00 |
2.00 |
2.39 |
|
92.00 |
93.00 |
1.00 |
5.11 |
|
141.00 |
141.55 |
0.55 |
2.36 |
MK-22-345 |
114.50 |
115.50 |
1.00 |
1.16 |
MK-22-347 |
234.43 |
236.41 |
1.98 |
3.48 |
|
270.00 |
271.64 |
1.64 |
1.12 |
|
286.56 |
288.00 |
1.44 |
1.72 |
|
291.44 |
294.33 |
2.89 |
1.78 |
|
315.90 |
318.22 |
2.32 |
1.69 |
|
390.60 |
391.35 |
0.75 |
4.40 |
MK-22-348 |
92.75 |
97.55 |
4.80 |
2.04 |
|
136.21 |
138.14 |
1.93 |
4.77 |
|
148.60 |
150.00 |
1.40 |
3.04 |
|
203.00 |
234.00 |
31.00 |
1.77 |
Incl. |
203.00 |
204.10 |
1.10 |
3.52 |
Incl. |
211.00 |
211.65 |
0.65 |
2.87 |
Incl. |
212.95 |
213.52 |
0.57 |
2.00 |
Incl. |
218.40 |
234.00 |
15.60 |
2.83 |
Incl. |
224.50 |
227.50 |
3.00 |
8.42 |
|
281.89 |
284.66 |
2.77 |
2.26 |
|
349.90 |
351.00 |
1.10 |
2.26 |
MK-22-351 |
|
|
|
NSA |
MK-22-358 |
103.50 |
105.50 |
2.00 |
1.68 |
|
118.50 |
119.50 |
1.00 |
1.05 |
|
175.00 |
176.00 |
1.00 |
1.12 |
MK-22-359 |
58.50 |
62.00 |
3.50 |
1.93 |
|
65.00 |
66.00 |
1.00 |
2.25 |
|
114.65 |
116.00 |
1.35 |
1.72 |
|
141.55 |
143.15 |
1.60 |
2.98 |
|
205.30 |
206.40 |
1.10 |
1.91 |
|
215.12 |
216.55 |
1.43 |
1.14 |
|
246.00 |
246.85 |
0.85 |
1.82 |
MK-22-360 |
211.90 |
212.79 |
0.89 |
1.30 |
|
222.00 |
223.85 |
1.85 |
1.08 |
|
242.66 |
243.38 |
0.72 |
2.66 |
|
279.08 |
280.23 |
1.15 |
1.55 |
|
305.77 |
306.89 |
1.12 |
1.85 |
|
311.77 |
312.28 |
0.51 |
2.20 |
|
352.90 |
354.27 |
1.37 |
1.46 |
MK-22-363 |
336.00 |
341.78 |
5.78 |
1.53 |
|
366.52 |
381.43 |
14.91 |
1.54 |
Incl. |
370.52 |
372.00 |
1.48 |
9.09 |
|
445.33 |
446.70 |
1.37 |
1.30 |
MK-22-365 |
238.50 |
241.50 |
3.00 |
1.62 |
|
255.50 |
257.00 |
1.50 |
1.56 |
MK-22-366 |
119.80 |
120.90 |
1.10 |
1.69 |
|
246.00 |
250.55 |
4.55 |
2.12 |
|
280.00 |
280.50 |
0.50 |
7.86 |
|
304.40 |
305.10 |
0.70 |
1.86 |
|
368.50 |
370.38 |
1.88 |
3.20 |
|
373.70 |
375.70 |
2.00 |
1.18 |
MK-22-367 |
44.00 |
45.00 |
1.00 |
1.10 |
|
124.00 |
124.74 |
0.74 |
1.39 |
|
164.00 |
165.40 |
1.40 |
8.54 |
|
273.00 |
274.00 |
1.00 |
8.99 |
|
304.00 |
305.00 |
1.00 |
1.17 |
|
330.00 |
333.00 |
3.00 |
1.18 |
*The width shown is the core length. True width
is estimated to be between 85% and 90% of core length.
NSA = No Significant Assays
Table 2: McKenzie Break Drill Hole
Location
Hole |
UTM_E (m) |
UTM_N (m) |
Azimut (°) |
Dip (°) |
Length (m) |
MK-22-339 |
309566.7 |
5358400 |
230 |
-88 |
165 |
MK-22-342 |
309636.7 |
5358223 |
230 |
-88 |
156 |
MK-22-345 |
309852 |
5358150 |
230 |
-88 |
234 |
MK-22-347 |
310029 |
5358437 |
230 |
-88 |
399 |
MK-22-348 |
309951 |
5358491 |
230 |
-88 |
365 |
MK-22-351 |
309800 |
5358200 |
230 |
-88 |
231 |
MK-22-358 |
309865 |
5358615 |
230 |
-88 |
213 |
MK-22-359 |
309900 |
5358936 |
230 |
-88 |
360 |
MK-22-360 |
310182.2 |
5359219 |
230 |
-88 |
480 |
MK-22-363 |
310295.2 |
5359114 |
230 |
-88 |
552 |
MK-22-365 |
310032 |
5358877 |
230 |
-88 |
435 |
MK-22-366 |
310231.1 |
5358811 |
230 |
-88 |
513 |
MK-22-367 |
310037.7 |
5358714 |
230 |
-88 |
420 |
Table 3: 2021 MRE for McKenzie
Break
Area (cut-off grade) |
Indicated resource |
Inferred resource |
Tonnes (t) |
Grade (g/t) |
Ounces (Au) |
Tonnes (t) |
Grade (g/t) |
Ounces (Au) |
Pit-constrained (0.50 g/t Au) |
1,441,377 |
1.80 |
83,305 |
2,243,562 |
1.44 |
104,038 |
Underground (2.38 g/t Au) |
387,720 |
5.03 |
62,677 |
1,083,503 |
4.21 |
146,555 |
TOTAL |
1,829,097 |
|
145,982 |
3,327,065 |
|
250,593 |
Notes :
- Mineral resources which are not
mineral reserves do not have demonstrated economic viability. An
Inferred Mineral Resource has a lower level of confidence than that
applying to a Measured and Indicated Mineral Resource and must not
be converted to a Mineral Reserve. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, market or other relevant issues. The quantity and
grade of reported inferred resources are uncertain in nature and
there has not been sufficient work to define these inferred
resources as indicated or measured resources.
- The database used for this mineral
estimate includes drill results obtained from historical records
and up to the recent 2018-2020 drill program.
- Mineral resources are reported at a
cut-off grade of 0.50 g/t Au for the pit-constrained and
underground mineral resources are reported at a cut-off grade of
2.38 g/t Au within reasonably mineable volumes.
- These cut-offs were calculated at a
gold price of C$1,980 ounce.
- The pit-constrained resources were
based on the following parameters: mining cost $3.5/t, processing,
transportation + G&A costs $27/t, Au recovery 95%, pit slopes
15 degrees for overburden and 50 degrees for rock.
- The underground reasonably mineable
volumes were based on the following parameters: mining cost $98/t,
processing, transportation + G&A costs $27/t, Au recovery 95%,
dilution of 15% at 0 g/t Au with a minimum stope dimension of 10m x
10m x 5m.
- The geological interpretation of
the deposits was based on lithologies and the typical mineralized
interval mainly composed by diorite hosted shear zones.
- The mineral resource presented here
was estimated with a block size of 5m x 5m x 5m for the
pit-constrained and for underground.
- The blocks were interpolated from
equal length composites calculated from the mineralized intervals.
Prior to compositing, high-grade gold assays were capped to 60 g/t
Au applied on 0.6-metre composites.
- The mineral estimation was
completed using the inverse distance squared methodology utilizing
two passes. For each pass, search ellipsoids followed the
geological interpretation trends were used.
- Tonnage estimates are based on rock
specific gravity of 2.77 tonnes per cubic metre for all the zones.
Results are presented undiluted and in situ.
- Estimates use metric units (metres,
tonnes and g/t). Metal contents are presented in troy ounces
(metric tonne x grade / 31.10348).
- This MRE is dated February 11,
2021, and with an amended date of October 14, 2021. The effective
date for the drillhole database used to produce this updated
mineral resource estimate is February 1, 2021. Tonnages and ounces
in the tables are rounded to the nearest hundred. Numbers may not
total due to rounding.
- No economic evaluation of the
resources has been produced.
- The MRE was prepared by Alain-Jean
Beauregard, P.Geo., Daniel Gaudreault, P.Eng. of Geologica
Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude Duplessi,
P.Eng. of GoldMinds GeoServices, all qualified persons under
National Instrument 43-101.
Table 4: Monarch Combined Mineral Resource
Estimates
Mineral resource estimates |
Tonnes (metric) |
Grade (g/t Au) |
Ounces |
Beaufor Mine1 |
|
|
|
Measured Resources |
328,500 |
5.7 |
59,900 |
Indicated Resources |
956,400 |
5.2 |
159,300 |
Total Measured and Indicated |
1,284,900 |
5.3 |
219,200 |
Total Inferred |
818,900 |
4.7 |
122,500 |
Croinor Gold2 |
|
|
|
Measured Resources |
97,700 |
6.24 |
19,600 |
Indicated Resources |
805,900 |
6.50 |
168,300 |
Total Measured and Indicated |
903,600 |
6.47 |
187,900 |
Total Inferred |
200,100 |
6.19 |
39,800 |
McKenzie Break3 |
|
|
|
In-pit |
|
|
|
Total Indicated |
1,441,377 |
1.80 |
83,305 |
Total Inferred |
2,243,562 |
1.44 |
104,038 |
Underground |
|
|
|
Total Indicated |
387,720 |
5.03 |
62,677 |
Total Inferred |
1,083,503 |
4.21 |
146,555 |
Swanson4 |
|
|
|
In-pit |
|
|
|
Total Indicated |
1,864,000 |
1.76 |
105,400 |
Total Inferred |
29,000 |
2.46 |
2,300 |
Underground |
|
|
|
Total Indicated |
91,000 |
2.86 |
8,400 |
Total Inferred |
87,000 |
2.87 |
8,000 |
TOTAL COMBINED5 Measured
and Indicated Resources Inferred
Resources |
|
|
666,882 423,193 |
|
1 Source: NI 43-101 Technical Report and Mineral Resource Estimate
for the Beaufor Mine Project, October 13, 2021, Val-d’Or, Québec,
Canada, Charlotte Athurion, P. Geo., Pierre-Luc Richard, P. Geo.,
and Dario Evangelista, P. Eng., BBA Inc. 2 Source: NI 43-101
Technical Report and Mineral Resource Estimate for the Croinor Gold
Project, June 17, 2022, Val-d’Or, Québec, Canada, Olivier
Vadnais-Leblanc, P.Geo., Carl Pelletier, P.Geo. and Eric Lecomte,
P.Eng., InnovExplo Inc. 3 Source: NI 43-101 Technical Evaluation
Report on the McKenzie Break Property, October 14, 2021, Val-d’Or,
Québec, Canada, Alain-Jean Beauregard, P.Geo., Daniel Gaudreault,
P.Eng., of Geologica Groupe-Conseil Inc., and Merouane Rachidi,
P.Geo., Claude Duplessis, P.Eng., of GoldMinds GeoServices Inc. 4
Source: NI 43-101 Technical Report and Mineral Resource Estimate
for the Swanson Project, January 22, 2021, Val-d’Or, Québec,
Canada, Christine Beausoleil, P. Geo. and Alain Carrier, P. Geo.,
InnovExplo Inc. 5 Numbers may not add due to rounding. |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4b93d70d-003a-423c-a0b0-fe27f0175084
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