• The mineral resource estimate for McKenzie Break was prepared for two scenarios:
• Scenario 1: A pit constrained Indicated resource of 48,133 ounces and Inferred resource of 14,897 ounces, and an underground Indicated resource of 53,448 ounces and Inferred resource of 49,130 ounces, for a total of 165,608 ounces of gold.
• Scenario 2: An underground Indicated resource of 85,059 ounces and Inferred resource of 58,373 ounces, for a total of 143,432 ounces of gold.
• Monarques Gold now has a combined measured and indicated resource of more than 3 million ounces of gold (see table at the end of press release).

MONTREAL, June 14, 2018 /PRNewswire/ - MONARQUES GOLD CORPORATION ("Monarques" or the "Corporation") (TSX-V:MQR) MRQRF MR is pleased to report the results of a mineral resource estimate for its McKenzie Break gold project 35 km north of Val-d'Or, Québec. Monarques can acquire a 100% interest in the property from Agnico Eagle Mines Limited AEMAEM over a four-year period (see press release dated December 21, 2017). The report was prepared by Alain-Jean Beauregard (P.Geo.) and Daniel Gaudreault (Eng.) of Geologica Groupe-Conseil Inc., and Christian D'Amours (P.Geo.) of GeoPointCom Inc., qualified persons as defined by NI 43-101. The estimate was prepared by GeoPointCom Inc. and is dated April 17, 2018.

Following a careful and detailed review of the old holes logs, and thanks to the 3D compilation of the drilling data, it was possible to identify about 11 new mineralized structures. These mineralized zones are located near, above and below the 12 Green and Orange zones and associated known sub-zones. With approximately 23 associated gold structures, it is now possible to consider the possibility of a pit-constrained operation as presented in Scenario 1.

"The results of this resource estimate are better than we anticipated, mainly due to the pit constrained potential," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. "The pit constrained resource is easily accessible as the average overburden thickness is only 5 metres wide, meaning that we could put the McKenzie Break project into production relatively quickly. With our Beacon Mill less than 20 km away scheduled to restart in the last quarter of 2018, we could potentially use this resource as additional feed for the mill. We think this could be a cost-effective strategy for this project, and we will now work on increasing the potential of the pit constrained resource."   

The McKenzie Break property is located in an area with existing infrastructure and several mills. It has surface and underground infrastructure, including a ramp down to a depth of 80 metres below surface. The main Green and Orange zones were drilled on a tight grid to define the resource. The mineralization consists of multiple, narrow and at times anastomosing high-grade veins. Assay results can be erratic due to the nugget effect of the gold.

The database contains conventional analytical gold assay results for 258 surface diamond drill holes, as well as coded lithology from the drill core logs (except for the Series WD04 and WD05 holes). This represents 39,611 m of core for a total of 14,758 m assayed core. The database does not include results for QA/QC samples. At least one of the mineralized zones or the potential pit mineralized material covered by the estimate was intersected in 244 of the holes. This represents 3,411 intersections (including 1,817 in the mineralized zone) for 56,141 composites (including 5,488 in the mineralized zone).

The report covers two scenarios. The first scenario has two elements: a proposed pit constrained operation for the near-surface mineralized material and an underground operation for the remaining zones deep underground. The second scenario contemplates an underground operation only.

 

 

Notes:

1. CIM definitions for mineral resources were used.
2. Mineral resources were estimated at a cut-off grade of 0.52 g/t Au for the pit constrained resource and at a cut-off grade of 3.50 g/t Au for the underground resource.
3. Mineral resources were estimated using a 3-year average gold price of US $1,234.82 per ounce on the London market and an exchange rate of US $0.78 = C $1.00.
4. A minimum mining width of 2 metres was used.
5. A bulk density of 2.77 g/cm³ was used.
6. Numbers may not add due to rounding.

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-André Lavergne, Eng., the Corporation's qualified person under National Instrument 43‑101, by Alain-Jean Beauregard, P. Geo., of Geologica Groupe-Conseil Inc. and Christian D'Amours, P. Geo., of GeoPointCom Inc., all of whom are qualified persons as defined by NI 43-101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corporation (TSX.V:MQR) 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 km² of gold properties (see map), including the Beaufor Mine, the Croinor Gold (see video), 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.

Forward-Looking Statements

The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarques' actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Monarques Gold Measured and Indicated Resources

 

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SOURCE Monarques Gold Corporation