Monarch Gold Corp. [GBAR-TSX; MRQRF-OTCQX; MR7-FSE] on Thursday January 28 released an updated resource estimate for its wholly-owned Beaufor Mine Project located 20 kilometres northeast of Val d’Or, Quebec.
It said the Beaufor Mine contains a measured resource of 121,000 tonnes grading 5.62 g/t gold for a total of 21,900 ounces. On top of that is an indicated resource of 310,100 tonnes, grading 7.10 g/t gold or 70,800 ounces. The company also said inferred resources at the site now stand at 134,600 tonnes, grading 6.96 g/t gold for a total of 30,100 ounces. These estimates have been developed for an underground scenario using a cut-off grade of 3.20 g/t gold.
Monarch shares advanced on the news, rising 16.67% or $0.010 to 70 cents on volume of 845,973. The shares are currently trading in a 52-week range of 59 cents and 77 cents.
Based in Quebec City, Monarch Gold is an emerging gold producer, aiming to achieve ongoing growth through a large portfolio of properties in the Val d’Or mining district. The company has over 240 km2 of gold properties, including the Beaufor Mine, the Croinor and Wasamac advanced projects. The asset portfolio also includes the Camflo and Beacon mills. The company offers custom milling services out of the 1,600 tonne-per-day Camflo mill.
The Beaufor Mine began commercial production in the early 1930s and over the years has produced over 1.1 million ounces of gold. However, operations were suspended in June, 2019, and the mine was placed on care and maintenance. Beaufor’s current status has given Monarch the opportunity to complete a 3D compilation and a program to identify, define and drill targets throughout the mine area.
In June, 2020, the company launched a 42,500-metre diamond drilling program to test two types of targets, including 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” targets can be tested from the existing underground workings, generally by holes less than 200 metres long,” the company said.
Currently, 275 exploration holes are in the process of being drilled to allow the zones in question to be converted into resources and ultimately reserves for inclusion in a future mine plan. The underground portion of this exploration program involves the use of four underground drill rigs.