Montreal, Québec, Canada, July 12, 2023 – MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) (OTCQB: GBARF) is pleased to report additional results from the 2022 drilling program on its wholly-owned McKenzie Break gold project, located 25 kilometres north of the Corporation’s wholly owned Beacon mill.
The 2022 drilling program on the McKenzie Break property totaled 16,104 metres in 53 holes. Today, Monarch is reporting the results from the remaining 16 holes totalling 5,950 metres (see Figure 1, Figure 2, and Tables 1 and 2 for complete results. True width is estimated to be between 85% and 90% of core length). Some assays are still pending for one of the holes (MK-22-362).
The drilling program was aimed at expanding the size of the 2021 mineral resource estimate (“2021 MRE”), including the current pit shell in the up-dip direction (to the west and south), and the underground resource to the east and north. The mineralized envelope has increased and now measures 1,100 metres by 700 metres and has been tested down to a maximum vertical depth of 400 metres.
Recent results have defined broad zones of mineralization, including 1.26 g/t Au over 23.6 m, followed by another zone 47 m down the hole with 1.41 g/t Au over 17.3 m (MK-22-349). This drill hole is located approximately 35 metres beyond the southeast limit of the pit shell defined in the 2021 MRE.
Notable high-grade mineralization was recently identified between two of the larger mineral resource blocks that were defined in the 2021 MRE. This included 10.12 g/t Au over 1.73 m and 11.91 g/t Au over 1.84 m, both hosted in hole MK-22-350. These intersections confirm the high-grade nature of the gold mineralization in this area.
The most northeasterly holes of the program continue to show encouragement and that the mineralization continues and is very much open in the downdip direction. Better intersections currently being reported included 5.90 g/t Au over 2.12 m (MK-22-361), 2.63 g/t Au over 1.87 m (MK-22-364) and 12.40 g/t Au over 1.52 m (MK-22-377).
Drilling results to expand the pit shell up dip and to the west were positive and included 5.29 g/t Au over 1.63 m and 9.19 g/t Au over 0.66 m (MK-22-379) in the northwest part of the pit shell. The results of the southwest pit shell expansion were also positive with 2.50 g/t Au over 3.0 m (MK-22-340) and 1.09 g/t Au over 5.75 m (MK-22-341). Intersections in both of these areas show a strong probability that the pit shell can be expanded updip to the west.
Several holes were drilled within the limits of the proposed pit shell in order to fill in the larger gaps between the previous drill holes. Best intersections included 12.7 g/t Au over 0.91 m, 7.61 g/t Au over 2.71 m and 11.2 g/t Au over 1.27 m (all within MK-22-368) and 3.67 g/t Au over 2.45 m and 2.78 g/t Au over 5.29 m in hole MK-22-369.
Since the publication of the 2021 MRE by Geologica and GoldMinds (see Table 3), Monarch drilled a total of 41,465 m in 121 drill holes. The holes are relatively shallow and were primarily drilled at the outer edge of the proposed pit shell limits and in the area of the underground mineral resource blocks. This drilling has confirmed that the pit shell and underground mineral resource can be expanded beyond the limits defined in the 2021 MRE.
“The recent drill results confirm that the mineralization remains open downdip to the northeast as well as up dip to the west along the northern and southern edges of the pit shell,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “Our confirmation drilling, filling in larger gaps for both the underground resource blocks and within the pit shell, continues to give positive results and further our understanding of the known mineralization.”
Drilling and Quality Control
Drill results are obtained by sawing the drill core into equal halves along its main axis and shipping one of the halves to ALS Canada or AGAT Laboratories in Val-d’Or, Québec, for assaying. The samples are crushed, pulverized and assayed by fire assay, with an atomic absorption finish. Samples exceeding 3 g/t Au are re-assayed using the gravity method and samples containing visible gold are assayed using the metallic screen method. Monarch uses a comprehensive QA/QC protocol, including the insertion of standards, blanks and duplicates.
The technical and scientific content of this press release has been reviewed and approved by Louis Martin, P.Geo., the Corporation’s qualified person under National Instrument 43-101.
Monarch Mining Corporation (TSX: GBAR) (OTCQB: GBARF) is a gold mining company that owns four projects, including the Beaufor Mine, which is currently on care and maintenance and 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 Beacon Mill with a design capacity of 750 tpd. 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.
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the timeline of the initiatives described in this press release, those relating to the intended use of proceeds of the Offering, the final approval of the Toronto Stock Exchange in connection with the Offering, the entering into or more sale agreements, debt settlement agreements, merger or other combination business agreements, the Corporation’s commitments and initiatives outlined in the press release, the intended results of the initiatives described in this press release, the positive impact of the foregoing on project economics, and generally those statements which are discussed under the “About Monarch” paragraph and elsewhere in the press release which essentially describe the Corporation’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of Canadian, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.
Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, the Corporation's ability to continue as a going concern, the Corporation being a going concern able to realize its assets and discharge its liabilities in the normal course of business as they come due into the foreseeable future, the generation of interest for its review of a range of alternatives, in either the sale of part or all of the Company or its assets, a merger or other business combination with another party, a potential investment in Monarch, a debt restructuring, or other strategic initiatives with the goal of maximizing return in respect of the Company’s assets, the ability of the Corporation to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Corporation, the business conditions of the Corporation will not change In a materially adverse manner, expectations that the business of the Corporation will continue in the ordinary course, litigation as well as cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in Monarch's Annual Information Form dated September 28, 2022, including in the section thereof captioned “Risk Factors”, which is available on SEDAR at www.sedar.com. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the manuals of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Figure 1: McKenzie Break Significant Intervals from Press Release
Figure 2: McKenzie Break – Composite Cross Section
Table 1: McKenzie Break Assay Results and Significant Intervals
Table 2: McKenzie Break Drill Hole Location
Table 3: 2021 MRE for McKenzie Break
Table 4: Monarch Combined Mineral Resource Estimates
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.