Mr. Jean-Marc Lacoste reports
MONARCH GOLD PRODUCES 3,572 OUNCES OF GOLD AND GENERATES $7.3 MILLION IN REVENUE IN THE FOURTH QUARTER
Monarch Gold Corp. has released its production and corporate highlights for the fourth quarter ended June 30, 2019.
Monarch produced 3,572 ounces of gold in the fourth quarter, up 169 per cent from the third quarter and down 24 per cent from the 4,695 ounces produced last year. The increase was attributable to a rise in the production rate at the Camflo mill and the Beaufor mine combined with a higher grade of ore.
- The corporation recorded revenues of $7.3-million in the fourth quarter from the sale of 2,666 ounces of gold at an average price of $1,764 per ounce plus custom milling revenue, which was down 3.1 per cent from the third quarter due to an increase in the tonnage milled from the Beaufor mine.
- As at June 30, 2019, the corporation had more than 1,100 ounces of gold in inventory.
"This was a solid quarter in terms of performance, especially given that we operated with approximately one-third the work force we had last year," said Jean-Marc Lacoste, president and chief executive officer of Monarch. "This quarter also marks the suspension of our production activities at the Beaufor mine during the quarter, as of June 27, 2019, and at the Camflo mill on July 10, 2019. Given the current gold environment, our team is focusing on identifying new exploration targets at the Beaufor mine and preparing a drilling program on the most promising targets, while Camflo is currently undergoing maintenance work that should take place over a 90-day period.
"Despite the fact that we have suspended our production activities, Monarch is in an excellent position to benefit from the current upward trend in gold prices. The corporation has a large portfolio of high-quality mining assets that include two mills, six advanced gold projects with total measured and indicated resources of more than 3.1 million ounces of gold, a 14.2-per-cent interest in Unigold, as well as a strong financial position. Our goal in the coming quarters will be to develop our flagship Wasamac project, which has an annual production potential of 142,000 ounces of gold over 11 years (see press release dated Dec. 3, 2018), and to increase the value of our assets through partnerships and other transactions."
Three months Three months ended 12 months ended 12 months ended
ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018
Ore processed (tonnes) 27,648 30,523 96,212 98,394
Gold recovery (%) 98.24 98.70 98.17 98.76
Ounces produced 3,572 4,695 13,225 15,071
Ounces sold 2,666 4,589 12,534 14,856
On May 9, 2019, the corporation acquired a block of 6.5 million shares of Unigold Inc. from an investor at an agreed price of 11.5 cents per share, for a total of $747,500, payable by the issuance of 3.25 million common shares of the corporation at an agreed price of 23 cents each.
- On June 10, 2019, the corporation announced that it had been awarded the 2018 F. J. O'Connell trophy in the "underground operations -- less than 400,000 hours worked" category for the Beaufor mine by the Quebec Mining Association at its annual conference held on June 5 and 6, 2019, in Entourage sur-le-Lac, Lac Beauport, in the Quebec City area (see press release).
- On June 18, 2019, the corporation announced the signature of binding letters of intent for the acquisition of an aggregate 100-per-cent interest in the Fayolle property from Hecla Quebec Inc., formerly known as Aurizon Mines Ltd., and Typhoon Exploration Inc. (see press release).
- On June 19, 2019, the corporation announced that its wholly owned subsidiary, Louvem Mines Inc., had sold a 2-per-cent net smelter return royalty on certain claims of the Chimo mine property to Cartier Resources Inc. in consideration of a cash payment of $350,000 (see press release).
- On July 25, 2019, the corporation sold its portfolio of net smelter return royalties on the Chimo property (owned by Chalice Gold Mines Ltd.) for a cash payment of $350,000. Monarch held a portfolio of NSR royalties ranging from 0.5 per cent to 2.5 per cent on the Chimo property, which surrounds the Chimo mine property.
The technical and scientific content of this press release has been reviewed and approved by Marc-Andre Lavergne, PEng, the corporation's qualified person under National Instrument 43-101.
About Monarch Gold Corp.
Monarch Gold 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 square kilometres of gold properties, including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Croinor gold, McKenzie Break, Beaufor 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.
We seek Safe Harbor.
MEASURED AND INDICATED RESOURCE
Tonnes (metric) Grade (g/t Au) Ounces
Measured resources 3,990,000 2.52 323,300
Indicated resources 25,870,000 2.72 2,264,500
Total 29,860,000 2.70 2,587,900
Croinor gold mine
Measured resources 80,100 8.44 21,700
Indicated resources 724,500 9.20 214,300
Total 804,600 9.12 236,000
Indicated resources (pit constrained) 1,694,000 1.80 98,100
Indicated resources (underground) 58,100 3.17 5,900
Total 1,752,100 1.85 104,100
McKenzie Break property
Indicated resources (pit constrained) 939,860 1.59 48,133
Indicated resources (underground) 281,739 5.90 53,448
Total 1,221,599 2.58 101,581
Measured resources 74,400 6.71 16,100
Indicated resources 271,700 7.93 69,300
Total 346,200 7.67 85,400
Simkar gold property
Measured resources 33,570 4.71 5,079
Indicated resources 208,470 5.66 37,905
Total 242,040 5.52 42,984
Total combined measured and indicated resources 3,157,865
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