MONARCH MINING CORPORATION (TSX: GBAR) (OTCQX: GBARF) reports that it has suspended its operations at the Beaufor Mine due to financial and operational challenges. The mine will be put on care and maintenance for an undetermined period.
As reported on August 31, the slower ramp-up of the Beacon mill following a number of mechanical and procurement issues, as well as problems with the grade reconciliation of the material stockpiled, caused cash restrictions and forced the Corporation to slow down its mining activities at Beaufor.
Following a review of its operations, the Corporation received confirmation of continuing significant discrepancies between the reported grade of the material mined at Beaufor and the grade of material processed at the Beacon Mill, which is causing continued lower cash flow from operations than expected and generating insufficient funds for the Corporation to continue its operations.
The Corporation intends to continue to process the estimated stockpile of 20,000 tonnes to generate funds prior to placing the Beacon Mill on care and maintenance. In addition, the Corporation is planning to start a complete review of identified issues, including stockpile management and its mining methods in finding solutions to resolve the dilution issues.
The Corporation has started a strategic review of its assets and operations. Monarch is currently working closely with its lenders, suppliers, customers and potential investors to develop a strategy to fund its activities.
“The decision taken today by the Board and management was after careful consideration of all available information from the mine and mill operations, and the Corporation current and projected financial situation. We understand that this situation is difficult for our shareholders, employees and stakeholders,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. ”We will continue to work towards resolving the present situation at the operations while seeking strategic and financial alternatives to maximize stakeholder value.”
Monarch Mining Corporation 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.
Table 1: Monarch combined gold resources
|Mineral resource estimates||Tonnes
|Total Measured and Indicated||1,284,900||5.3||219,200|
|Total Measured and Indicated||903,600||6.47||187,900|
Measured and Indicated Resources
|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.
Outcrop Silver & Gold Corporation (TSX-V: OCG) (OTCQX: OCGSF... READ MORE
Alphamin Resources Corp. (TSX-V:AFM) (JSE AltX:APH) a producer of... READ MORE
Highlights Significant Drill Intercepts High-grade lithium minera... READ MORE
Revival Gold Inc. (TSX-V: RVG) (OTCQX: RVLGF) is pleased to... READ MORE
Sabre Gold Mines Corp. (TSX: SGLD) (OTCQB: SGLDF) announces the s... READ MORE
We acknowledge the [financial] support of the Government of Canada.