MONTREAL, Sept. 27, 2022 (GLOBE NEWSWIRE) —(“Monarch” or the “Corporation”) ( ) (OTCQX: GBARF) reports today 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.”
( ) (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.
Some of the statements in this news release may constitute “forward-looking information” as defined under applicable securities laws. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note. Forward-looking information is not, and cannot be, a guarantee of future results or events. These statements reflect Monarch’s current expectations of future revenues and business prospects and opportunities and are based on information currently available to Monarch. Monarch cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Monarch currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in Monarch’s annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com) on December 1, 2021. Risk factors that could cause actual results to differ materially from those predicted herein including but not limited to: timing and anticipated cost of care and maintenance activities at the Beaufor Mine, inherent hazards associated with the operation and closure of mining projects, volatility in financial markets or general economic conditions; capital requirements and the need for additional financing, unanticipated changes in production, mineral reserves and mineral resources and the related grades, metallurgical recoveries and loss of key personnel. Although Monarch has attempted to identify important factors that could cause its actual results, performance or achievements to differ materially from those described in the forward-looking statements, there are other business risks and hazards associated with mineral exploration, development and mining that cause its results, performance or achievements not to be as anticipated, estimated or intended. Although Monarch believes that the forward-looking information contained herein is based on reasonable assumptions (including assumptions relating to economic, market and political conditions, requirements readers cannot be assured that actual results will be consistent with such statements. Monarch expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
|FOR MORE INFORMATION:|
President and Chief Executive Officer
Vice President, Corporate Development
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.
P2 Gold Closes First Tranche of Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, Dec. 08, 2022 (GLOBE…
White Gold Corp. Announces Fully Subscribed $4.4 Million Private Placement
TORONTO, Dec. 08, 2022 (GLOBE NEWSWIRE) — White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) (the "Company") is pleased to announce a non-brokered…
Cross River Announces Closing of Second Tranche of Private Placement Financing
Vancouver, British Columbia–(Newsfile Corp. – December 8, 2022) – Cross River Ventures Corp. (CSE: CRVC) (FSE: C6R) (the "Company") announces that it…
Defense Metals Closes Oversubscribed Private Placement of $6.1 Million
Consolidated Woodjam Copper Corp. Provides Update on Effective Date of Plan of Arrangement with Vizsla Copper Corp.
Arena Minerals Increases Land Holdings in Pastos Grandes
REPEAT – Tearlach Announces Appointment of New Chief Executive Officer and Director
Copper Lake Signs Drill Contract With Forages Lamontagne Fortier
Ascot Drills Its Highest-Grade Intercept Since 2017: 488 g/t Gold Over 1.0 metre at the Big Missouri Deposit
VIZSLA COPPER PROVIDES UPDATE ON EFFECTIVE DATE OF CONSOLIDATED WOODJAM ACQUISITION
Aurwest Resources Reports Third Quarter September 30, 2022 Operating Results and Negotiates a One Year Extension on All Capital Commitments on Newfoundland Projects
National Bank of Canada confirms new normal course issuer bid
Azimut and KGHM Sign Joint Venture Option Agreement for the Kukamas Copper-Gold Property, James Bay Region, Quebec
Uncategorized13 hours ago
Merry Xmas: Which #Metals/#Commodities will Perform Best in 2023?
Companies13 hours ago
Fortuna increases Sunbird Resource and identifies new regional prospects at Séguéla, Côte d´Ivoire
News Releases15 hours ago
Mirasol Defines Additional Drill Targets on the Inca Copper-Gold Project in Chile
Financing News14 hours ago
Arena Minerals Increases Land Holdings in Pastos Grandes
Precious Metals13 hours ago
Gold to Shine in 2023, says Bloomberg
Uncategorized12 hours ago
Our 7 Top Battery Stock Picks for 2023
Base Metals13 hours ago
Iron Ore Futures to Rise as China Eases Zero-COVID
News Releases15 hours ago
Osisko Announces Binding Term Sheet With Miyuukaa to Transport Hydroelectric Power to Windfall Project