- BBA Inc. awarded contract for mineral resource estimate (MRE)
on Beaufor Mine gold deposit.
- New MRE to incorporate 2020-2021 drill program results and use
new and more advanced 3D technology to treat vast amounts of
historical data.
- Excavation of exploration drift initiated to provide drill bays
for testing depth extensions.
Montreal, May 10, 2021 /CNW Telbec/ - MONARCH MINING CORPORATION
("Monarch" or
the "Corporation") (TSX: GBAR) (OTCMKTS:
GBARF) is pleased to announce that it has awarded the mineral
resource estimate (MRE) contract for the Beaufor Mine gold project
to BBA Inc.
The Beaufor Mine first entered commercial production in the
early 1930's and over the years has produced over 1.1 million
ounces of gold. The mine is currently on care and maintenance,
which has given Monarch an
opportunity to drill-test targets throughout the mine area. In
June 2020, the Corporation initiated
a 42,500-metre diamond drilling program to test near-mine
targets.
Monarch has retained the
services of the engineering consulting group BBA Inc. to update the
resource estimate for the Beaufor Mine property. Up until
December 2020, MREs for the Beaufor
Mine used a polygonal method on cross sections. The MRE to be
produced by BBA Inc. will represent the first block model type
resource estimate for the property. It will include much of the
historical information as well as results of the ongoing 2020-2021
drilling program. This work is in line with Monarch's vision and approach of using new and
more advanced technologies to treat vast amounts of historical data
that had previously been worked and viewed in a predominantly 2D
format. The MRE is expected to be completed in early Q3 2021.
The results of the ongoing 2020-2021 drilling program to be
included in the updated MRE represent 171 recently completed holes
(~17,000 metres of drilling). Significant results include 783 g/t
Au over 0.2 m and 293 g/t Au over
0.5 m (see press release dated
October 1, 2020), 35.87 g/t Au over
9.8 m (see press release dated
January 19, 2021) and 187.0 g/t Au
over 0.5 m, 151.5 g/t Au over
0.5 m and 147.5 g/t Au over
0.3 m (see press release dated
April 29, 2021).
Monarch has begun driving an
exploration drift with drill bays at the lower-most level of the
mine, approximately 900 metres below surface. The drill bays will
allow the Corporation to properly test the continuity of the
mineralized zones at depth (see Figures 1 and 2). Historical
intersections, obtained from up to 150 metres below the mine
workings, include 16.45 g/t Au over 6.75
m (hole 120-126), 17.06 g/t Au over 4.25 m (hole 18-150-69) and 26.11 g/t Au over
5.6 m (hole 128-35) (core lengths do
not represent true thickness). The first phase of the exploration
drift, currently in progress, consists of 75 metres of lateral
development plus drill bays, which will allow for 4,400 metres of
exploration drilling. This drilling is considered an integral part
of the ongoing 42,500-m program.
"We are very much looking forward to seeing the results of the
BBA Inc. mineral resource estimate, which will not only reflect the
results of our most recent exploration drilling but will also
reinterpret the geology and mineralization using 3D modelling. This
work will allow us to review and revisit parts of the mine that may
not have been included in the previous polygonal resource estimate.
We are also thrilled to be doing exploration drilling below the
current mine workings, which up until now has been limited by the
lack of a proper exploration drilling drift and drill stations.
Given the results we have seen to date and discoveries at
neighbouring mines at deeper depths, we have great confidence that
Beaufor's mineralization continues at depth," said Jean-Marc Lacoste, President and Chief Executive
Officer of Monarch.
The technical and scientific content of this press release has
been reviewed and approved by Christian
Tessier, P.Geo., the Corporation's qualified person under
National Instrument 43-101.
About Beaufor
The Beaufor Mine is located within the
Bourlamaque Batholith at the eastern contact with the Dubuisson
Formation. The Bourlamaque Batholith, a synvolcanic intrusion, is a
major geological feature of the Val-d'Or mining camp. It is a quartziferous
granodiorite cut by fine-grained dioritic dykes. Gold
mineralization occurs in veins associated with shear zones dipping
moderately south. Mineralization is associated with
quartz-tourmaline-pyrite veins resulting from the filling of shear
and extension fractures. Gold-bearing veins show a close
association with mafic dykes intruding the granodiorite. A National
Instrument 43-101 resource estimate for the Beaufor Mine property
was prepared for Monarch Mining in December
2020 by Carl Pelletier, P.
Geo., InnovExplo Inc., and John
Langton, P. Geo., JPL GeoServices Inc. The mineral resource
estimate is listed in the table below.
Table 1: 2020 mineral resource estimate for the Beaufor
Mine
Category
|
Tonnes
|
Grade (g/t
Au)
|
Gold
(ounces)
|
Measured
|
121,000
|
5.62
|
21,900
|
Indicated
|
310,100
|
7.10
|
70,800
|
Total
M+I
|
431,100
|
6.68
|
92,700
|
Inferred
|
134,600
|
6.96
|
30,100
|
Mineral Resource
Estimate notes:
|
|
1.
|
The independent and
qualified person for the 2020 MRE, as defined by NI 43-101, is Carl
Pelletier, P.Geo. (InnovExplo Inc.), and the effective date is
December 18, 2020.
|
2.
|
These mineral
resources are not mineral reserves as they do not have demonstrated
economic viability. The mineral resource estimates follow CIM
Definition Standards and Guidelines.
|
3.
|
A capping of
68.5 g/t Au on assays was applied for zones 8, B, M, M1
and Q, and 34.25 g/t for all other zones. The DDH intercepts (min.
2.4 m) were capped at 16.5 g/t.
|
4.
|
The estimate method
was polygonal on cross-sections with a minimum width of 2.4 m using
a density of 2.75 t/m3 for the 63 mineralized
zones.
|
5.
|
Measured resource
polygons extend 8 m above and below development and up to
10 m laterally. Indicated resource polygons extend up to
20 m from DDH intercepts, along dip and along strike and a
minimum of 2 polygons need to be in contact. Inferred resource
polygons extend up to 40 m from DDH intercepts, along dip and
along strike where a drill spacing ranges from 20 m to
40 m and/or in areas of isolated drill holes where
mineralization is known.
|
6.
|
The reasonable
prospect for an eventual economical extraction is met by having a
reasonable minimum width for the polygons, a cut-off grade of
3.20 g/t Au, application of constraining volumes on the
blocks (potential underground scenario) below a 30 m crown pillar.
The cut-off grades inputs are: a gold price of USD1,612/oz, a
CAD:USD exchange rate of 1.34; a mining cost of $100/t for the long
hole method and $145/t for the room and pillar method; a processing
cost of $50/t; and G&A and environment of $13/t and includes
the royalty of 1.0% and a refinery charge of $5/t. The cut-off
grades should be re-evaluated in light of future prevailing market
conditions (metal prices, exchange rate, mining cost,
etc.).
|
7.
|
Results are presented
in situ. Ounce (troy) = metric tons x grade / 31.10348. The number
of tonnes and ounces was rounded to the nearest hundred. Any
discrepancies in the totals are due to rounding effects; rounding
followed the recommendations as per NI 43-101.
|
8.
|
InnovExplo Inc. is
not aware of any known environmental, permitting, legal,
title-related, taxation, socio-political, marketing or other
relevant issue that could materially affect the mineral resource
estimate.
|
About BBA Inc.
BBA Inc. has been providing a wide
range of consulting engineering services for over 40 years. Today,
its engineering, environmental and commissioning experts team up to
quickly and accurately pinpoint the needs of industrial and
institutional clients. The firm's expertise is recognized in the
fields of energy, mining and metals, biofuels and oil and gas. With
14 offices across Canada to
provide clients with local support and field presence, BBA Inc. is
recognized for providing some of the industry's most innovative,
sustainable and reliable solutions. www.bba.ca
About Monarch
Monarch
Mining Corporation (TSX: GBAR) is a fully integrated mining company
that owns four advanced projects, including the fully permitted
past-producing Beaufor Mine, which has produced more than 1 million
ounces of gold over the last 30 years. Other advanced assets
include the Croinor Gold, McKenzie Break and Swanson properties, all located near
Monarch's wholly owned and fully
permitted Beacon 750 tpd mill. Monarch owns 28,725 hectares
(287 km2) of mining assets in the prolific Abitibi
mining camp that host 588,482 ounces of combined measured and
indicated gold resources and 329,393 ounces of combined inferred
resources.
Forward-Looking Statements
The forward-looking
statements in this press release involve known and unknown risks,
uncertainties and other factors that may cause Monarch's actual results, performance and
achievements to be materially different from the results,
performance or achievements expressed or implied therein. Neither
TSX nor its Regulation Services Provider (as that term is defined
in the policies of the TSX) accepts responsibility for the adequacy
or accuracy of this press release.
Table 2: Monarch combined
gold resources
|
Tonnes
(metric)
|
Grade
(g/t Au)
|
Ounces
|
Croinor
Gold1
|
|
|
|
Measured
Resources
|
80,100
|
8.44
|
21,700
|
Indicated
Resources
|
724,500
|
9.20
|
214,300
|
Total Measured and
Indicated
|
804,600
|
9.12
|
236,000
|
Total
Inferred
|
160,800
|
7.42
|
38,400
|
Beaufor
Mine2
|
|
|
|
Measured
Resources
|
121,000
|
5.62
|
21,900
|
Indicated
Resources
|
310,100
|
7.10
|
70,800
|
Total Measured and
Indicated
|
431,100
|
6.68
|
92,700
|
Total
Inferred
|
134,600
|
6.96
|
30,100
|
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
|
|
|
588,482
|
Inferred
Resources
|
|
|
329,393
|
1 Source:
Monarch Gold prefeasibility study (January 19, 2018) and resource
estimate (January 8, 2016). This resource estimate was prepared for
Monarch Gold and has not been reviewed by a qualified person for
Monarch Mining as required under National Instrument 43-101 and is
thus considered as an historical estimate.
2 Source: NI 43-101 Technical Report
and Mineral Resource Estimate for the Beaufor Mine, December 18,
2020, Val-d'Or, Québec, Canada, Carl Pelletier, P. Geo., InnovExplo
Inc. and John Langton, P. Geo., JPL GeoServices Inc.
3 Source:
NI 43-101 Technical Evaluation Report on the McKenzie Break
Property, February 1, 2021, Val-d'Or, Québec, Canada, Alain-Jean
Beauregard, P.Geo., Daniel Gaudreault, P.Eng., Geologica
Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude
Duplessis, P.Eng., 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 up due to rounding.
|
www.monarchmining.com
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SOURCE Monarch Mining Corporation