- Geological and grade continuity demonstrated for all 63
mineralized zones of the Beaufor mine
- Beaufor mine contains a Measured resource of 121,000 tonnes
grading at 5.62 g/t Au for a total of 21,900 ounces of gold and an
Indicated resource of 310,100 tonnes grading at 7.10 g/t Au for a
total of 70,800 ounces
- Inferred resource estimated at 134,600 tonnes grading 6.96 g/t
Au for a total of 30,100 ounces
- Mineral resource estimated using the polygonal method, based on
muck samples and diamond drill hole data
- Resource estimate developed for an underground scenario using a
cut-off grade of 3.20 g/t Au
- Additional diamond drilling would likely upgrade some of the
Inferred resource to the Indicated category and would likely
identify additional resources down-plunge and in the vicinity of
known mineralization
MONTRÉAL, Jan. 28, 2021 /CNW
Telbec/ - MONARCH MINING CORPORATION ("Monarch" or
the "Corporation") (TSX: GBAR) is pleased to
announce an updated mineral resource estimate for its advanced,
wholly-owned Beaufor Mine project, 20 kilometres northeast of
Val-d'Or.
The Beaufor mine began commercial production in the early 1930s
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 complete a 3D compilation and targeting
program to identify, define and drill exploration targets
throughout the mine area. In June
2020, the Corporation initiated a 42,500-metre diamond
drilling program to test two types of targets: the areas around
historical high-grade intersections near the existing underground
infrastructure, and isolated resource blocks, which are typically
defined by a single drill intersection. These "near-mine"
exploration targets can be tested from the existing underground
workings or by shallow holes drilled from the surface. Currently,
275 exploration holes are in the process of being drilled or are
planned, and if they produce positive results, additional holes
will be drilled to allow the zones in question to be converted into
resources and ultimately reserves, for inclusion in a future mine
plan. Along with the surface drilling, the underground portion of
this exploration program has been ongoing since June 2020 with four underground drill rigs. The
first series of underground assay results were reported in a press
release dated October 1, 2020, while
the first series of shallow, near-surface drill results were
reported in a press release dated January
19, 2021. These recent drill results were not part of the
current resource estimate.
The current mineral resource estimate was prepared by
Christian Tessier, P.Geo., of
Monarch and reviewed and validated by Carl
Pelletier, P.Geo., of InnovExplo Inc. of Val-d'Or (Quebec), using all available information. The
2020 mineral resource estimate included information up to
October 27, 2020. The effective
date of the 2020 MRE is December 18,
2020.
The 2020 mineral resource estimate area covers an approximate
strike length of 1.5 km by a width of 900 m, down to vertical
depth of 1,200 m below surface. The
project database used for the 2020 mineral resource estimate
contained 10,009 drill holes (882,544
m) and 178,242 assays as at October
27, 2020. It comprises 63 distinct mineralized zones that
generally follow east-west trending corridors in the granodiorite,
generally in the vicinity of a contact with mafic volcanic rocks.
The gold mineralization occurs predominantly in the quartz veins
and sometimes with disseminated pyrite in the altered granodiorite
in the wall rock of the quartz veins.
The table below presents the results of the 2020 mineral
resource estimate for the project at a 3.20 g/t Au cut-off
grade for potential extraction methods as at December 18, 2020.
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.
|
"Monarch Mining continues to advance the Beaufor property in
order to return it to commercial production," said Jean-Marc Lacoste, President and Chief Executive
Officer of Monarch. "The resource estimate confirms that there is
still significant mineralization in the mine. We plan to continue
with our current exploration program aimed at identifying and
drill-testing high-grade veins and vein extensions, with the
ultimate goal of growing this resource and restarting gold
production at the Beaufor Mine within 8 to 14 months to take
advantage of the very favourable gold market."
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 Monarch
Monarch Mining Corporation (TSX: GBAR)
is a gold mining, development, and exploration company, focused in
the prolific Abitibi mining camp in Canada. The Corporation owns four advanced
gold properties including the fully permitted past producing
Beaufor Mine, which has produced over 1 million ounces of gold over
the last 30 years. Other advanced assets include the Croinor Gold,
McKenzie Break and Swanson
properties, all located in the vicinity of its wholly owned and
fully permitted 750 tpd Beacon Mill.
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.
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SOURCE Monarch Gold Corporation