Monarch announces high-grade assays as it moves towards production restart at Beaufor mine

Just days after Triple Flag Precious Metals (TSX: TFPM) agreed to acquire a 2.75% net smelter return (NSR) royalty on Monarch Mining’s (TSX: GBAR; US-OTC: GBARF) Beaufor gold mine in Quebec for $11.25 million in cash, Monarch has released new high-grade assays from its drill program, the majority of which are within 100 metres of workings at the past-producing gold mine. 

Mining at Beaufor was suspended in 2018 due to low grades and weak gold prices, but the company plans to resume mining later this year. According to a securities filing in December, Monarch based its decision to restart the mine on “positive drilling results, the current gold price environment, the proposed production strategy” and the securing of financing.  

The new production strategy envisions operating the Beaufor mine via two accesses — the production ramp and the shaft — while previous production had been accessed only by the shaft, the filing stated.  

In preparation for the restart, about 15,000 tonnes of ore have been extracted and transported to the Beacon mill. 

Highlights of the most recent drill results included 2.1 metres grading 52.19 grams gold per tonne starting at 10.9 metres in hole BEU-21-12-014 and 1.41 metres grading 44.90 grams gold per tonne starting at 123.6 metres in drill hole BEU-21-30-085.  

“Beaufor continues to show strong exploration potential at depth, as we continue to encounter high-grade gold mineralization in various parts of the mine,” Jean-Marc Lacoste, the company’s CEO said in a press release on February 10. 

The Beaufor mine, located 20 km northeast of the town of Val-d’Or, began commercial production in the early 1930s and has produced over 1.1 million oz. gold, according to Monarch. In the two years before it shut down, the mine produced 28,467 oz. gold grading 4.55 grams gold per tonne.  

Monarch Mining was spun out from Monarch Gold last year after Yamana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) acquired the company. Monarch Mining received the Beaufor mine, the Beacon mill, three projects in Quebec (Mckenzie Break, Croinor and Swanson), along with $14 million in cash.  

Last month, the company released drill results from the same area of the Beaufor mine. 

Highlights included 1.3 metres grading 46.29 grams gold per tonne starting from 32.8 metres in drill hole BES-21-048 and 2.5 metres grading 9.71 grams gold per tonne starting from 173.5 metres in drill hole BES-21-034.   

Beaufor has measured and indicated resources of 1.3 million tonnes grading 5.3 grams gold per tonne for 219,500 contained ounces. The inferred resource adds 818,900 tonnes at 4.7 grams gold per tonne for 122,500 contained ounces of the metal. 

At presstime, Monarch Mining was trading at 71¢ per share within a 52-week trading range of 62¢ and $1.14. The company has 84.69 million common shares outstanding for a market cap of $60.13 million.