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Monarch Provides an Update on Its Operations at the Beaufor Mine

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MONARCH MINING CORPORATION (TSX: GBAR) announced a slowdown of mining operations at its Beaufor Mine in Quebec due to cash flow restrictions. The Beacon Mill's ramp-up has faced mechanical issues and low-grade ore, reducing its operational capacity to 50% in recent months. The company plans to optimize mining methods while processing over 20,000 tonnes of stockpiled ore. CEO Jean-Marc Lacoste acknowledged COVID-19's impact on production but is optimistic about resolving the issues temporarily.

Positive
  • Processing over 20,000 tonnes of stockpiled ore to maintain cash flow.
  • Focus on optimizing mining methods to reduce ore dilution.
Negative
  • Cash flow from milling operations lower than expected due to mechanical and procurement issues.
  • Beaufor Mine operations slowed down amid cash restrictions.

MONTRÉAL, Aug. 31, 2022 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQX: GBARF) announces that it has made the decision to slow down mining operations at its wholly-owned Beaufor Mine, located east of Val-d'Or, Quebec. The Beacon Mill operations will not be impacted.

The restart and ramp-up of the Beacon Mill have been slower than expected and the availability for the months of July and August has been approximately 50% of its capacity of 750 tpd. The ramp-up has been impacted by a number of mechanical and procurement problems as well as technical problems with the grade reconciliation of the stockpile already at the Beacon site, which included a low-grade pile and development ore that turned out to be lower grade than expected. As a result, cash flow from milling operations has been lower than expected.

As a result of short-term cash restriction, the Corporation has decided to slow down production activities at the Beaufor Mine. During this period, the Corporation will work towards optimizing its mining method in an effort to reduce dilution.

“This is a difficult decision to make, especially with the recently announced first gold pour, but one that is necessary to ensure that the ramp-up and integration of mining and milling operations improve over the coming weeks,” said Jean-Marc Lacoste, President and CEO of Monarch. “The presence of COVID-19 brings a new reality that we must deal with and better integrate into our production process. Over the next few weeks, our team will be working relentlessly to find solutions to resolve these issues and to get the plant running at full capacity.”

"During this period, which we believe to be temporary, we will continue to process the more than 20,000 tonnes of ore stockpiled at the Beacon Mill and Beaufor Mine sites in order to generate the funds required for our operations," concluded Mr. Lacoste.

About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a fully integrated mining company that owns four projects, including the Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned 750 tpd Beacon Mill. Monarch owns 29,504 hectares (295 km2) of mining assets in the prolific Abitibi mining camp that host a combined measured and indicated gold resource of 666,882 ounces and a combined inferred resource of 423,193 ounces.

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 Lacoste1-888-994-4465
President and Chief Executive Officerjm.lacoste@monarchmining.com 
  
Mathieu Séguin1-888-994-4465
Vice President, Corporate Developmentm.seguin@monarchmining.com 
  
Elisabeth Tremblay1-888-994-4465
Senior Geologist – Communications Specialiste.tremblay@monarchmining.com 

                
www.monarchmining.com

Table 1: Monarch combined gold resources

Mineral resource estimatesTonnes
(metric)
Grade
(g/t Au)
Ounces 
Beaufor Mine1    
Measured Resources328,5005.759,900 
Indicated Resources956,4005.2159,300 
Total Measured and Indicated1,284,9005.3219,200 
Total Inferred818,9004.7122,500 
Croinor Gold2    
Measured Resources97,7006.2419,600 
Indicated Resources805,9006.50168,300 
Total Measured and Indicated903,6006.47187,900 
Total Inferred200,1006.1939,800 
McKenzie Break3    
In-pit    
Total Indicated1,441,3771.8083,305 
Total Inferred2,243,5621.44104,038 
Underground    
Total Indicated387,7205.0362,677 
Total Inferred1,083,5034.21146,555 
Swanson4    
In-pit    
Total Indicated1,864,0001.76105,400 
Total Inferred29,0002.462,300 
Underground    
Total Indicated91,0002.868,400 
Total Inferred87,0002.878,000 
TOTAL COMBINED5
    
Measured and Indicated Resources  666,882 
Inferred Resources  423,193 
 
1 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Beaufor Mine Project, October 13, 2021, Val-d’Or, Québec, Canada, Charlotte Athurion, P. Geo., Pierre-Luc Richard, P. Geo., and Dario Evangelista, P. Eng., BBA Inc.
2 Source: NI 43-101 Technical Report and Mineral Resource Estimate for the Croinor Gold Project, June 17, 2022, Val-d’Or, Québec, Canada, Olivier Vadnais-Leblanc, P.Geo., Carl Pelletier, P.Geo. and Eric Lecomte, P.Eng., InnovExplo Inc.
3 Source: NI 43-101 Technical Evaluation Report on the McKenzie Break Property, October 14, 2021, Val-d’Or, Québec, Canada, Alain-Jean Beauregard, P.Geo., Daniel Gaudreault, P.Eng., of Geologica Groupe-Conseil Inc., and Merouane Rachidi, P.Geo., Claude Duplessis, P.Eng., of 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 recent decision did Monarch Mining Corporation make regarding the Beaufor Mine?

Monarch Mining Corporation decided to slow down mining operations at its Beaufor Mine due to cash flow restrictions.

How is the Beacon Mill's operational capacity currently performing?

The Beacon Mill's operational capacity has been approximately 50% due to mechanical and grade reconciliation problems.

What is Monarch Mining Corporation's stock symbol?

Monarch Mining Corporation's stock symbol is GBARF on the OTCQX.

What steps is Monarch Mining taking to address production challenges?

Monarch is focusing on optimizing its mining methods to reduce dilution and continues processing stockpiled ore.

What challenges has Monarch Mining faced during the ramp-up of the Beacon Mill?

The ramp-up has faced mechanical issues, procurement difficulties, and lower than expected grade ore.

MONARCH MINING CORP

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