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 the remaining 16 holes totalling 5,950
metres (see Figure 1, Figure 2, and Tables 1 and 2 for complete
results. True width is estimated to be between 85% and 90% of core
length). Some assays are still pending for one of the holes
(MK-22-362).
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 has increased and now measures 1,100 metres by
700 metres and has been tested down to a maximum vertical depth of
400 metres.
Recent results have defined broad zones of
mineralization, including 1.26 g/t Au over 23.6 m, followed by
another zone 47 m down the hole with 1.41 g/t Au over 17.3 m
(MK-22-349). This drill hole is located approximately
35 metres beyond the southeast limit of the pit shell defined
in the 2021 MRE.
Notable high-grade mineralization was recently
identified between two of the larger mineral resource blocks that
were defined in the 2021 MRE. This included 10.12 g/t Au over 1.73
m and 11.91 g/t Au over 1.84 m, both hosted in hole MK-22-350.
These intersections confirm the high-grade nature of the gold
mineralization in this area.
The most northeasterly holes of the program
continue to show encouragement and that the mineralization
continues and is very much open in the downdip direction. Better
intersections currently being reported included 5.90 g/t Au over
2.12 m (MK-22-361), 2.63 g/t Au over 1.87 m (MK-22-364) and 12.40
g/t Au over 1.52 m (MK-22-377).
Drilling results to expand the pit shell up dip
and to the west were positive and included 5.29 g/t Au over 1.63 m
and 9.19 g/t Au over 0.66 m (MK-22-379) in the northwest part of
the pit shell. The results of the southwest pit shell expansion
were also positive with 2.50 g/t Au over 3.0 m (MK-22-340) and 1.09
g/t Au over 5.75 m (MK-22-341). Intersections in both of these
areas show a strong probability that the pit shell can be expanded
updip to the west.
Several holes were drilled within the limits of
the proposed pit shell in order to fill in the larger gaps between
the previous drill holes. Best intersections included 12.7 g/t Au
over 0.91 m, 7.61 g/t Au over 2.71 m and 11.2 g/t Au over 1.27 m
(all within MK-22-368) and 3.67 g/t Au over 2.45 m and 2.78 g/t Au
over 5.29 m in hole MK-22-369.
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 recent drill results confirm that the
mineralization remains open downdip to the northeast as well as up
dip to the west along the northern and southern edges of the pit
shell,” said Jean-Marc Lacoste, President and Chief Executive
Officer of Monarch. “Our confirmation drilling, filling in larger
gaps for both the underground resource blocks and within the pit
shell, continues to give positive results and further our
understanding of 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, Québec, 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
Figure 2: McKenzie Break – Composite
Cross Section
Table 1: McKenzie Break Assay Results
and Significant Intervals
Hole |
From (m) |
To (m) |
Width (m)* |
Au (g/t) |
MK-22-340 |
92.00 |
95.00 |
3.00 |
2.50 |
MK-22-340 |
111.00 |
113.00 |
2.00 |
1.81 |
MK-22-341 |
78.80 |
79.40 |
0.60 |
2.89 |
MK-22-341 |
126.50 |
132.25 |
5.75 |
1.09 |
MK-22-346 |
180.14 |
181.54 |
1.40 |
0.83 |
MK-22-349 |
228.50 |
252.10 |
23.60 |
1.26 |
MK-22-349 |
285.00 |
286.00 |
1.00 |
2.01 |
MK-22-349 |
298.70 |
316.00 |
17.30 |
1.41 |
MK-22-350 |
87.40 |
88.72 |
1.32 |
2.20 |
MK-22-350 |
257.91 |
261.39 |
3.48 |
1.85 |
MK-22-350 |
277.14 |
278.87 |
1.73 |
10.12 |
MK-22-350 |
316.35 |
318.19 |
1.84 |
11.91 |
MK-22-355 |
84.90 |
86.00 |
1.10 |
1.96 |
MK-22-361 |
391.43 |
393.55 |
2.12 |
5.90 |
MK-22-362 |
276.50 |
280.50 |
4.00 |
1.06 |
MK-22-362 |
308.57 |
309.50 |
0.93 |
2.32 |
MK-22-362 |
332.00 |
336.00 |
4.00 |
0.92 |
MK-22-362 |
374.10 |
375.00 |
0.90 |
2.81 |
MK-22-364 |
313.83 |
315.70 |
1.87 |
2.63 |
MK-22-368 |
18.06 |
19.38 |
1.32 |
2.50 |
MK-22-368 |
93.75 |
94.66 |
0.91 |
12.70 |
MK-22-368 |
151.97 |
154.68 |
2.71 |
7.61 |
MK-22-368 |
202.76 |
204.03 |
1.27 |
11.20 |
MK-22-368 |
234.00 |
234.97 |
0.97 |
2.57 |
MK-22-369 |
43.48 |
45.93 |
2.45 |
3.67 |
MK-22-369 |
241.71 |
247.00 |
5.29 |
2.78 |
MK-22-369 |
255.72 |
257.23 |
1.51 |
1.38 |
MK-22-374 |
274.89 |
275.39 |
0.50 |
3.00 |
MK-22-374 |
309.95 |
311.00 |
1.05 |
2.90 |
MK-22-374 |
319.67 |
321.00 |
1.33 |
3.20 |
MK-22-375 |
233.96 |
235.15 |
1.19 |
19.96 |
MK-22-375 |
245.10 |
245.66 |
0.56 |
5.60 |
MK-22-375 |
268.16 |
271.10 |
2.94 |
2.02 |
MK-22-375 |
293.93 |
297.77 |
3.84 |
1.11 |
MK-22-376 |
250.28 |
251.18 |
0.9 |
4.60 |
MK-22-376 |
358.77 |
359.74 |
1.0 |
5.90 |
MK-22-377 |
119.16 |
120.68 |
1.52 |
12.40 |
MK-22-379 |
16.71 |
18.34 |
1.63 |
5.29 |
MK-22-379 |
96.83 |
98.44 |
1.61 |
2.21 |
MK-22-379 |
106.00 |
106.66 |
0.66 |
9.19 |
*The width shown is the core length. True width
is estimated to be between 85% and 90% of core length.
Table 2: McKenzie Break Drill Hole
Location
Hole |
UTM_E (m) |
UTM_N (m) |
Azimut (°) |
Dip (°) |
Length (m) |
MK-22-340 |
309604 |
5358352 |
230 |
-88 |
177 |
MK-22-341 |
309594 |
5358298 |
230 |
-88 |
159 |
MK-22-346 |
309948 |
5358348 |
230 |
-88 |
330 |
MK-22-349 |
310017 |
5358495 |
230 |
-88 |
399 |
MK-22-350 |
310077 |
5358480 |
230 |
-88 |
444 |
MK-22-355 |
309859 |
5358747 |
230 |
-88 |
438 |
MK-22-361 |
310239 |
5359214 |
230 |
-88 |
498 |
MK-22-362 |
310289 |
5359168 |
230 |
-88 |
531 |
MK-22-364 |
310311 |
5359055 |
230 |
-88 |
555 |
MK-22-368 |
309929 |
5358707 |
230 |
-88 |
360 |
MK-22-371 |
310192 |
5358621 |
230 |
-88 |
115 |
MK-22-374 |
310168 |
5359097 |
230 |
-88 |
468 |
MK-22-375 |
310120 |
5359026 |
230 |
-88 |
459 |
MK-22-376 |
310232 |
5358982 |
230 |
-88 |
525 |
MK-22-377 |
310276 |
5358960 |
230 |
-88 |
237 |
MK-22-379 |
309622 |
5358986 |
230 |
-88 |
255 |
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 |
|
|
666,882 |
Inferred
Resources |
|
|
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. |
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1f8eb95d-c580-4f7f-a3a8-469895de0d1d
https://www.globenewswire.com/NewsRoom/AttachmentNg/cd1ed3ef-e9f2-4e68-9515-d5c16a96076d
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