The BBA study for the custom milling option was positive and identified several processing plants able to provide the service.
Based on those results, the Corporation has retained BBA to conduct a feasibility study whose base scenario includes a mill and tailings facility near Wasamac, which will also allow to better assess the custom milling option.
The goal is to maximize the value of the Wasamac deposit, which contains a measured and indicated resource of 2,587,900 ounces of gold, and to bring it into production at the lowest possible cost.
MONTREAL, May 31, 2018 /CNW/ - MONARQUES GOLD CORPORATION ("Monarques" or the "Corporation") (TSX-V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to announce that it has retained BBA to conduct a feasibility study for its Wasamac gold project. The study will cover the assessment, design, engineering and costing of the mine, mill, tailings management facility and all related services and infrastructure needed to develop and mine the Wasamac deposit. This new feasibility study will be based on an upgraded measured and indicated resource of 2,587,900 ounces of gold (see press release of October 26, 2017).
Monarques management's priority is to examine every possible way of making Wasamac profitable at a gold price significantly lower than the scenario contemplated by the previous owner. The feasibility study will therefore consider the option of hauling the mineralized material underground to the vicinity of the rail line using the Rail-Veyor transport system, a promising technology currently in use at Agnico Eagle's Goldex operation in Val-d'Or (see a Goldex Rail-Veyor system), which would eliminate the significant capital expenditures required to sink a shaft.
"The results of the updated Wasamac resource estimate were very positive and compare favourably with other similar deposits currently in production," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. "We have therefore decided to proceed to the next stage with this feasibility study, which will include a base scenario of a mill and tailings facility near Wasamac and several options for hopefully improving mine profitability, including custom milling at one of the sites identified in the BBA study (see map of potential sites). We will then decide on the best strategy for Monarques. With a measured and indicated resource of 2,587,900 ounces of gold, the Wasamac gold project is the crown jewel of our transaction with Richmont Mines, and we are committed to putting it into production at the best possible cost, which could be a game-changer for Monarques in the long term."
The Corporation expects to receive the results of the feasibility study by the end of 2018.
The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.Eng., the Corporation's qualified person under National Instrument 43‑101.
ABOUT MONARQUES GOLD CORPORATION
Monarques Gold Corporation (TSX.V:MQR) is an emerging gold producer focused on pursuing growth through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns close to 300 km² of gold properties (see map), including the Beaufor Mine, the Croinor Gold (see video), Wasamac, McKenzie Break and Swanson advanced projects, and the Camflo and Beacon mills, as well as six promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill. Monarques enjoys a strong financial position and has more than 150 skilled employees who oversee its operating, development and exploration activities.
BBA is a Canada-wide consulting engineering firm that offers multidisciplinary consulting services in engineering, project management and environment. Thanks to its cutting-edge expertise in the energy, mining and metals, biofuels, and oil and gas sectors, BBA is now recognized for the excellence of its services, from pre-study to onsite commissioning support and detailed engineering.
The firm relies on a team of over 750 professionals from its 11 offices across Canada to carry out local, national and international mandates, thereby helping its industrial clients implement the most reliable, profitable and eco-friendly solutions.
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarques' actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE Monarques Gold Corporation
For further information: Jean-Marc Lacoste, President and Chief Executive Officer, 1-888-994-4465, [email protected], www.monarquesgold.com; Elisabeth Tremblay, Senior Geologist - Communications Specialist, 1-888-994-4465, [email protected], www.monarquesgold.com; Roseline Simard, Director, Marketing and Communication, BBA, 450-464-2111 ext. 8975, [email protected], www.bba.ca