Mr. Jean-Marc Lacoste reports
MONARQUES GOLD ESTIMATES PIT-CONSTRAINED RESOURCE ON ITS SWANSON GOLD PROJECT
Monarques Gold Corp. has provided the results of a mineral resource estimate for its Swanson gold project, 65 kilometres north from its wholly owned Beacon mill and 12 kilometres northeast of Barraute, Que. The CN railway line crosses the property, about 100 metres north of the Swanson deposit. Monarques acquired a 100-per-cent interest in the Swanson and McKenzie Break properties from Agnico Eagle Mines Ltd. (see press release dated Dec. 21, 2017). The resource estimate was prepared by Christine Beausoleil, PGeo, and Alain Carrier, PGeo, MSc, of InnovExplo Inc., both qualified and independent persons as defined by National Instrument 43-101. The effective date of the estimate is June 15, 2018.
"The great advantage of the Swanson project is that the railway track is directly on the property, which allows easy access to both our mills," said Jean-Marc Lacoste, president and chief executive officer of Monarques. "Much like for the McKenzie Break project, we are very pleased to have a pit-constrained resource for the Swanson project, as this could also mean additional feed for the Beacon mill. In addition, Monarques holds a mining lease on the Swanson property, which could allow us to put the deposit into production more quickly. Our new strategy of targeting pit-constrained resources from our McKenzie Break and Swanson properties, together with the reopening of our Beacon mill at the end of the year, could be a winning solution for all three projects."
The 2018 maiden mineral resource estimate was prepared using Leapfrog GEO and GEOVIA GEMS software. Leapfrog was used for 3-D modelling of the four mineralized zones while GEMS was used for grade estimation and block modelling. Statistical studies were done using Snowden Supervisor and Microsoft Excel software. The estimate was performed using 3-D block modelling with the ordinary kriging interpolation method.
The diamond drilling database contains the results of 146 surface and 63 underground drill holes provided by Monarques. Basic univariate statistics were performed on data sets of individual raw gold assays for each zone and for the dilution envelope. The capping (30 grams per tonne Au) was applied on raw assays before compositing at 1.5 m.
The estimate is reported for a potential scenario combining pit-constrained and underground resources at a cut-off grade of 0.8 g/t Au (pit constrained) and 2.7 g/t Au (underground). The cut-off grades were calculated using a gold price of $1,296 (U.S.) per ounce, a Canadian/U.S.-dollar exchange rate of 1.28 and the following parameters: (a) pit-constrained scenario: mining cost of $4.94 (Canadian)/t, processing cost of $27 (Canadian)/t, general and administrative of $4 (Canadian)/t, and pit slope of 50 degrees used during Whittle optimization; (b) underground scenario: mining cost of $90 (Canadian)/t, processing cost of $27 (Canadian)/t, and general and administrative of $10 (Canadian)/t.
The Swanson project mineral resource estimate for a potential scenario combining pit-constrained and underground resources at cut-off grades of 0.8 g/t Au (pit-constrained) and 2.7 g/t Au (underground) is summarized in the attached "Swanson maiden mineral resource estimate for a combined pit-constrained and underground scenario at a cut-off grade of 0.8 g/t Au (in pit) and 2.7 g/t Au (underground)" table, whereas the "Sensitivity analysis of the Swanson maiden mineral resource estimate for the pit-constrained scenario" table shows the sensitivity analysis of the Swanson maiden mineral resource estimate for the pit-constrained scenario.
SWANSON MAIDEN MINERAL RESOURCE ESTIMATE FOR A COMBINED PIT-CONSTRAINED AND
UNDERGROUND SCENARIO AT A CUT-OFF GRADE OF 0.8 G/T AU (IN PIT)
AND 2.7 G/T AU (UNDERGROUND)
Indicated resource Inferred resource
Zone Tonnage Grade (g/t Au) Ounces Tonnage Grade (g/t Au) Ounces
Pit-constrained 1,568,000 1.79 90,319 12,000 2.44 941
Underground 75,000 3.21 7,732 60,000 3.10 5,975
Total 1,643,000 1.86 98,051 72,000 2.99 6,917
Notes to the mineral resource table
* These mineral resources are not mineral reserves, as they do not have demonstrated
economic viability.
* The 2014 CIM definitions and guidelines for mineral resources have been followed.
* Results are presented in situ and undiluted and considered to have reasonable prospects for
economic extraction.
* The estimation encompasses four zones with a minimum true thickness of 2.5 metres using the
grade of the adjacent material when assayed, or a value of zero when not assayed.
* A high-grade capping of 30 g/t Au (four g/t Au for the dilution envelope) was applied to
assay grades prior to compositing grade for interpolation using an ordinary kriging
interpolation method, based on 1.5 m composite for block size of three m by three m by three m.
* Bulk density values were applied on the following lithological basis (grams per cubic centimetre):
I2 is 2.78; I4O, V3 and V4 are 2.90; and OVB is 1.5.
* The number of metric tonnes was rounded to the nearest thousand and the metal contents are
presented in troy ounces (tonne multiplied by grade divided by 31.10348).
* InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation,
socio-political or marketing issues, or any other relevant issue not reported in this technical
report that could materially affect the mineral resource estimate.
SENSITIVITY ANALYSIS OF THE SWANSON MAIDEN MINERAL
RESOURCE ESTIMATE FOR THE PIT-CONSTRAINED SCENARIO
Indicated resource Inferred resource
Cut-off Au (g/t) Tonnes Ounces Cut-off Au (g/t) Tonnes Ounces
0.6 1.65 1,798,000 95,499 0.6 2.22 14,000 997
0.7 1.72 1,685,000 93,157 0.7 2.28 13,000 952
0.8 1.79 1,568,000 90,319 0.8 2.44 12,000 941
0.9 1.87 1,453,000 87,173 0.9 2.56 11,000 907
1 1.94 1,338,000 83,651 1 2.66 10,000 856
The NI 43-101 technical report will be delivered and filed on SEDAR within the next 45 days.
The technical and scientific content of this press release has been reviewed and approved by Marc-Andre Lavergne, Eng, the corporation's qualified person, and by Christine Beausoleil, PGeo, and Alain Carrier, PGeo, MSc, of InnovExplo Inc., all of whom are qualified persons as defined by NI 43-101.
About Monarques Gold Corp.
Monarques Gold 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 square km of gold properties, including the Beaufor mine, the Croinor gold, 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.
MONARQUES GOLD MEASURED AND INDICATED RESOURCES
Tonnes (metric) Grade (g/t Au) Ounces
Wasamac property (1)
Measured resources 3.99 million 2.52 323,300
Indicated resources 25.87 million 2.72 2,264,500
Total measured and indicated resources 29.86 million 2.70 2,587,900
Beaufor mine (2)
Measured resources 74,400 6.71 16,100
Indicated resources 271,700 7.93 69,300
Total measured and indicated resources 346,200 7.67 85,400
Croinor gold mine (3)
Measured resources 80,100 8.44 21,700
Indicated resources 724,500 9.20 214,300
Total measured and indicated resources 804,600 9.12 236,000
Swanson property (4)
Indicated resources 1,643,000 1.86 98,051
McKenzie Break property (5)
Pit constrained
Indicated resources 939,860 1.59 48,133
Underground
Indicated resources 281,739 5.90 53,448
Simkar gold property (6)
Measured resources 33,570 4.71 5,079
Indicated resources 208,470 5.66 37,905
Total measured and indicated resources 242,040 5.52 42,984
Total
Measured and indicated resources 3,151,916
(1) Source: "Technical Report on the Wasamac Project," Rouyn-Noranda, Que., Canada,
Tudorel Ciuculescu, MSc, PGeo, Oct. 25, 2017, Roscoe Postle Associates Inc.
(2) Source: "NI 43-101 Technical Report on the mineral Resource and mineral Reserve
Estimates of the Beaufor mine" as at Sept. 30, 2017, Val d'Or, Que., Canada,
Carl Pelletier, PGeo, and Laurent Roy, Eng.
(3) Source: Monarques prefeasibility study (Jan. 19, 2018) and resource estimate
(Jan. 8, 2016).
(4) Source: "NI 43-101 Technical Report on the Swanson Project," June 15, 2018,
Christine Beausoleil, PGeo, and Alain Carrier, PGeo, MSc, of InnovExplo Inc.
(5) Source: "NI 43-101 Technical Report on the McKenzie Break Project," April 17,
2018, Alain-Jean Beauregard, PGeo, and Daniel Gaudreault, Eng, of Geologica
Groupe-Conseil Inc., and Christian D'Amours, PGeo, of GeoPointCom Inc.
(6) Source: MRB et Associes (January, 2015).
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