Monarch discovers high-grade zone at McKenzie Break

The latest drill results from Monarch Gold’s (TSX: MQR) McKenzie Break gold property, 25 km north of Val d’Or, Que., suggest a new high-grade zone of gold mineralization to the east of the current resource.

Drill highlights include 7 metres of 32.3 grams gold per tonne, 14 metres of 5.28 grams gold, and 11 metres of 10.5 grams gold, at a depth of more than 300 metres down-hole.

“These are truly the best results we have encountered so far on McKenzie Break, with the discovery of a new high-grade mineralized horizon to the east and below the current resource,” Jean-Marc Lacoste, the company’s president and CEO, said in a press release. “This drilling has shown excellent continuity of the mineralization between holes drilled on 50-metre centres and a significant thickening of the mineralization towards the east and south.”

Monarch now plans to drill four additional holes to test potential extensions of this new zone; the 1,600 metre program is anticipated to start at the end of the first quarter.

Of the five holes reported in the release, three are new diamond holes drilled last year, while two are extensions of holes completed in 2018 for a total of 1,462 metres of drilling.

A flooded portal at Monarch Gold’s McKenzie Break gold project. Credit: Monarch Gold.

The McKenzie Break project features a high-grade, multiple-narrow-vein deposit, with a 2018 report outlining pit-constrained indicated resources of 939,860 tonnes grading 1.59 grams gold for a total of 48,133 ounces. Additional inferred resources stand at 574,780 tonnes at 3.46 grams gold totalling 64,027 ounces. Indicated resources in the underground category are at 281,739 tonnes grading 5.9 grams gold.

Monarch Gold holds over 300 sq. km within its projects in the Abitibi greenstone belt, as well as the Camflo and Beacon mills. McKenzie Break is a potential source of feed for the 1,600 t/d-Camflo, which is 62 km away. The company’s flagship Wasamac deposit has measured and indicated resources of 29.9 million tonnes grading 2.7 grams gold for a total of 2.6 million ounces. Additional inferred resources measure 4.2 million tonnes at 2.2 grams gold for 293,900 ounces. A feasibility study for the deposit from 2018 outlines a 6,000 t/d underground operation producing an average of 142,000 oz. gold per year at all-in sustaining costs (AISCs) of $826 per oz., with a pre-production capital cost of $464 million.

Monarch started the permitting process for Wasamac in November 2019, which is expected to take two years to complete.

At press time in Toronto, Monarch shares were trading at 20¢, up 8.1% and within a 52-week trading range of 18¢ to 33¢. The company has 266.3 million common shares outstanding for a $53.2-million market capitalization.