Monarch Mining Intersects 24.70 g/t Au Over 0.6 m, 17.70 g/t Au Over 1.2 m and 1.79 g/t Au Over 21.0 m During Exploration Drilling on Croinor Gold

Rhea-AI Summary

Monarch has completed a 5,286-metre drilling program on the Croinor Gold property, yielding high-grade gold intersections, including 24.70 g/t Au over 0.6 m in hole CR-20-706. Other notable results include 17.70 g/t Au over 1.2 m in hole CR-20-713 and broader zones of 1.79 g/t Au over 21.0 m in hole CR-20-710. The program explored targets outside the current mineral resource envelope, confirming the presence of mineralization across a significant area. Monarch’s efforts emphasize expanding the resource base while advancing the main Croinor Gold deposit development.

Positive

• High-grade mineralization identified, including 24.70 g/t Au over 0.6 m in CR-20-706.
• Broader zones of lower-grade mineralization present, including 1.79 g/t Au over 21.0 m in CR-20-710.
• Drilling confirmed mineralization across multiple areas outside the main deposit, indicating potential for further resource expansion.

Negative

• None.

• Monarch has completed a 5,286-metre (26-hole) drilling program on its wholly-owned Croinor Gold property, focused on exploration targets outside the deposit and current mineral resource envelope.

• High-grade mineralization intersected in the Bug Lake area includes 24.70 g/t Au over 0.6 m in hole CR-20-706 and 17.70 g/t au over 1.2 m in hole CR-20-713.

• Broader zones of lower-grade mineralization were intersected in the Bug Lake area, including 1.79 g/t Au over 21.0 m in hole CR-20-710 and 2.32 g/t Au over 9.6 m in hole CR-20-711.

• High-grade mineralization within the recently acquired Busmac claims included 16.9 g/t Au over 0.4 m intersected in hole CR-20-703.

• Anomalous gold mineralization was traced for several hundred metres along strike within the Croinor and Busmac horizons.

• Semi-massive sulphides were intersected over 7 metres in the northwest part of the property.

MONTREAL, May 18, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCMKTS: GBARF) is pleased to announce it has completed the exploration diamond drilling program on its wholly-owned Croinor Gold project, located 55 kilometres east of Val-d’Or, Québec. The results include several significant intersections as Monarch continues to explore this vast property covering 25 kilometres of favourable stratigraphy.

The 2020-2021 diamond drilling program totalled 5,286 metres in 26 holes. It focused entirely on exploration targets outside the currently defined resource envelope of the Croinor Gold deposit.

The best high-grade drill results for the Bug Lake Zone include 24.70 g/t Au over 0.6 m in hole CR-20-706 and 17.70 g/t Au over 1.2 m in hole CR-20-713, within a broader zone of 9.28 g/t Au over 3.2 m. This showing is located over 500 m east of and stratigraphically above the Croinor Gold deposit. The mineralization in hole CR-20-706 consists of visible gold hosted in quartz veins with tourmaline.

Several holes drilled on the Bug Lake Zone also intersected broader zones of lower-grade gold mineralization. This includes 1.79 g/t Au over 21.0 m in hole CR-20-710 and 2.32 g/t Au over 9.6 m in hole CR-20-711. The Bug Lake Zone has currently been tested by diamond drilling over a strike length of 250 m and down to a vertical depth of approximately 250 m.

Significant mineralization was intersected in the area of the Busmac showing, located 4.5 km west of and stratigraphically below the Croinor Gold deposit. Historical resources at Busmac (neither NI 43-101 compliant nor verified by Monarch’s qualified person), as reported in Sigeom (mineral deposit 32C/03-0020), include 8,200 tonnes averaging 17.5 g/t Au and a second zone of 8,000 tonnes averaging 6.8 g/t Au. Assay results from Monarch’s 2020-2021 drilling program in the area of the Busmac showing include 16.9 g/t Au over 0.4 m. Wide step-out drilling along strike of the Busmac horizon, approximately 1,000 metres to the southeast, returned 1.12 g/t Au over 4.2 m, indicating that the mineralized system is open and shows regional continuity.

Hole CR-21-715, drilled in the far northwest part of the property, intersected semi-massive sulphides over a core length of 7 m. The sulphide mineralization is associated with a local magnetic high and is less than 1 km from the Realore showing (Sigeom, mineral showing 2133), which assayed up to 21.03 g/t Au and 0.76% Cu.

“We are very pleased with the results of this exploration drill program, in that we have confirmed the presence of mineralization in several areas outside of the main Croinor Gold deposit,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “We will continue to focus on advancing the development of the Croinor Gold deposit while at the same time exploring other showings in this vast land package covering multiple favourable horizons over more than 25 km of strike length.”

Other significant results are shown in Figure 1 and Table 1, below.

Figure 1: Croinor property with 2020-2021 drill results.

Table 1: Significant assay results

Hole	From (m)	To (m)	Width* (m)	Au (g/t)
CR-20-697	247.1	248.2	1.1	3.05
CR-20-698	No significant assays
CR-20-699	180.7	184.9	4.2	1.12
CR-20-700	275.9	276.6	0.7	0.69
CR-20-701	115.5	117.1	1.6	2.28
CR-20-702	93.6	95.4	1.8	0.68
CR-20-702	124.5	125.8	1.3	1.26
CR-20-703	96.6	97.4	0.8	4.03
CR-20-703	151.9	153.3	1.4	1.45
CR-20-703	161.4	161.8	0.4	16.90
CR-20-704	188.3	189.6	1.3	2.09
CR-20-705	No significant assays
CR-20-706	39.7	40.3	0.6	24.70
CR-20-707	58.4	58.9	0.5	3.24
CR-20-708	61.7	62.7	1.0	1.44
CR-20-709	77.3	77.6	0.3	1.88
CR-20-710	47.7	68.7	21.0	1.79
Including	47.7	48.7	1.0	6.60
And	60.0	61.5	1.5	7.00
And	67.5	68.7	1.2	7.30
CR-20-711	28.0	37.6	9.6	2.32
Including	32.9	34.8	1.9	8.62
CR-20-711	45.7	46.0	0.3	1.89
CR-20-712	66.7	67.7	1.0	1.09
CR-20-712	103.5	105.5	2.0	5.52
CR-20-713	76.4	79.6	3.2	9.28
Including	78.4	79.6	1.2	17.70
CR-20-713	88.6	90.0	1.4	1.69
CR-20-714	No significant assays
CR-20-715	No significant assays
CR-21-716	140.0	141.3	1.3	0.85
CR-21-717	175.8	176.8	1.0	0.64
CR-21-718	190.2	190.8	0.6	1.76
CR-21-719	90.2	91.3	1.1	3.50
CR-21-720	136.6	137.5	0.9	1.76
CR-21-721	No significant assays
CR-21-722	No significant assays

*The width shown is the core length. True width is estimated at 80-85% of core length.

Table 2: Drill hole location

Hole	Easting (UTM)	Northing (UTM)	Az (deg.)	Dip (deg.)	Length (m)
CR-20-697	351663	5330313	192	-46	252
CR-20-698	347439	5330674	196	-47	201
CR-20-699	345474	5331433	200	-46	300
CR-20-700	345855	5331155	200	-45	327
CR-20-701	344734	5331942	190	-45	189
CR-20-702	344685	5331976	190	-45	198
CR-20-703	344635	5331992	190	-45	183
CR-20-704	344709	5332097	190	-46	378
CR-20-705	350508	5330473	160	-50	96
CR-20-706	350531	5330466	237	-50	84
CR-20-707	350549	5330473	237	-50	90
CR-20-708	350560	5330457	237	-50	90
CR-20-709	350557	5330555	200	-50	123
CR-20-710	350604	5330559	201	-50	111
CR-20-711	350626	5330365	202	-52	69
CR-20-712	350636	5330393	200	-50	114
CR-20-713	350636	5330393	200	-75	231
CR-20-714	348757	5328996	200	-45	198
CR-21-715	339548	5336449	195	-52	432
CR-21-716	349466	5329356	209	-43	207
CR-21-717	347767	5330067	214	-46	201
CR-21-718	347924	5330091	215	-45	201
CR-21-719	350884	5329919	213	-43	204
CR-21-720	351077	5329839	210	-46	201
CR-21-721	351492	5330413	203	-46	252
CR-21-722	358844	5327118	193	-50	354

Sampling consists of sawing the NQ-size core into equal halves along its main axis and shipping one of the halves to the AGAT Laboratories in Mississauga, Ontario, for assaying. The samples are crushed, pulverized and assayed by fire assay, with atomic absorption finish. Results exceeding 3.0 g/t Au are re-assayed using the gravity method, and samples containing visible gold grains are assayed using the metallic screen method. Monarch uses a comprehensive QA/QC protocol, including the insertion of standards and blanks.

About Croinor Gold
Monarch Mining holds a 100% interest in the Croinor Gold property, which consists of one mining lease and 337 claims covering over 151.9 km². The property includes a mineral resource estimate of 804,600 tonnes at an average grade of 9.12 g/t Au for 236,000 ounces of gold in the Measured and Indicated category, along with 160,800 tonnes at an average grade 7.42 g/t Au for 38,400 ounces in the Inferred category. The mineral resource does not include the results for holes drilled after November 2015, which represents 59,000 metres of drilling in 254 holes.

On January 19, 2018, Monarch Gold Corporation announced the positive results of the pre-feasibility study prepared by InnovExplo Inc. The results of the pre-feasibility study show that the Croinor project is economically viable and has the potential to become a low-cost mine.

Pre-feasibility study highlights:

• Pre-tax internal rate of return of 47.56%, net present value of $32 million.
• Cash production cost of $818/ounce (US$639/ounce) and total production cost of $1,155/ounce (US$902/ounce).
• Based on a gold price of US$1,280 and an exchange rate of 1.28 CAD/1 USD.
• The study does not include holes drilled after November 2015 (59,000 metres in 254 holes).

The technical report summarizing the results of the pre-feasibility study can be viewed on Monarch's website.

The Croinor Gold deposit is hosted in the Croinor Sill, a synvolcanic intrusion that has been traced along strike by drilling for over 2.4 km. Mineralization is hosted in quartz-carbonate-tourmaline-pyrite veins that can be traced from several tens of metres up to 600 metres.

Table 3: Resources Estimate for the Croinor Gold deposit at the selected cut-off grades

Cut-off g/t	Measured Resources			Indicated Resources			Measured + Indicated Resources
	Tonnes	Au g/t	Oz Au	Tonnes	Au g/t	Oz Au	Tonnes	Au g/t	Oz Au
> 5.00	59,000	9.86	18,700	538,000	10.85	187,600	597,000	10.75	206,300
> 4.00	80,100	8.44	21,700	724,500	9.20	214,300	804,600	9.12	236,000
> 3.00	111,900	7.02	25,300	997,500	7.64	244,900	1,109,400	7.57	270,200

Notes:

1. The Independent Qualified Persons for the Mineral Resource Estimate, as defined by NI 43-101, are Karine Brousseau, Eng., and Carl Pelletier, B.Sc., P.Geo. (InnovExplo Inc.); the effective date of the estimate is November 6, 2015.
2. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
3. The results are presented undiluted and in situ; the estimate includes 51 gold-bearing zones, some of which contain resources below the cut-off grade.
4. The Mineral Resource was compiled at cut-off grades of 3, 4 and 5 g/t Au; however, the official resource is at a cut-off grade of 4 g/t.
5. The cut-off grade should be reviewed in the light of prevailing market conditions (gold price, exchange rate and mining cost).
6. A density of 2.8 g/cm³ was used for the mineralized zones and the waste rock.
7. A minimum true thickness of 1.8 m was applied, using the grade of the adjacent material when assayed, or else a grade of zero.
8. High-grade capping was applied to the raw assay data, and was established at 70 g/t Au for the diamond drill core and 55 g/t Au for the underground channel samples.
9. Compositing was done on drill hole sections and underground channel sections falling within the mineralized zones (composite = 1 metre).
10. Resources were estimated using GEOVIA GEMS 6.7 software from diamond drill holes and underground channel samples using an ID6 interpolation method in a block model (block size 5m x 2.5m x 2.5m).
11. The Measured, Indicated and Inferred categories were defined using the parameters for the various passes.
12. Isolated blocks in the Indicated category showing no spatial continuity in terms of grade and/or information density were reclassified from Indicated to Inferred.
13. Blocks in the Inferred category showing good spatial continuity in terms of grade and/or information density were reclassified from Inferred to Indicated.
14. Ounce (troy) = Metric Tons x Grade / 31.10348. Metric units (metres, tonnes and g/t) were used in the estimate.
15. The tonnage estimate was rounded to the nearest hundred tonnes. Any discrepancies in the totals are due to the rounding effect; rounding followed the recommendations in Form 43-101F1.
    

The technical and scientific content of this press release has been reviewed and approved by Louis Martin, P.Geo., the Corporation’s qualified person under National Instrument 43-101.

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 750 tpd Beacon 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.

FOR MORE INFORMATION:
Jean-Marc Lacoste	1-888-994-4465
President and Chief Executive Officer	jm.lacoste@monarchmining.com
Mathieu Séguin	1-888-994-4465
Vice President, Corporate Development	m.seguin@monarchmining.com
Elisabeth Tremblay	1-888-994-4465
Senior Geologist – Communications Specialist	e.tremblay@monarchmining.com

www.monarchmining.com

Table 4: 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 Inferred Resources			588,482 329,393
1 Source: Monarch Gold prefeasibility study (January 19, 2018) and resource estimate (January 8, 2016). This resource was completed 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 due to rounding.

FAQ

What were the key results from Monarch's May 2021 drilling program on the Croinor Gold property?

The drilling program revealed high-grade intersections, including 24.70 g/t Au over 0.6 m and 17.70 g/t Au over 1.2 m, confirming mineralization in multiple areas.

How many metres were drilled in Monarch's Croinor Gold exploration program?

Monarch completed a 5,286-metre drilling program consisting of 26 holes.

What is the focus of Monarch's exploration efforts on the Croinor Gold property?

The exploration targets outside the current mineral resource envelope aim to expand the resource base.

What are the future plans for Monarch regarding the Croinor Gold deposit?

Monarch plans to continue advancing the development of the Croinor Gold deposit while exploring additional showings.

What is the significance of the drilling results for Monarch's investors?

The high-grade findings and potential for resource expansion are likely to positively influence investor sentiment and stock performance.