Agoracom Blog Home

Archive for the ‘Monarques Gold’ Category

Monarques Gold $MQR.ca to Drill 50,000 Metres on the Beaufor and Croinor Gold Properties in 2018 $MUX.ca $SII.ca

Posted by AGORACOM-JC at 9:30 AM on Thursday, February 22nd, 2018

  • Investment aimed at increasing the gold resource and assessing new high-potential targets
  • 30,000-metre program at Beaufor
  • 20,000-metre program on Croinor Gold

 

MONTREAL, Feb. 22, 2018 /PRNewswire/ – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to announce that it will carry out a total of 50,000 metres of drilling in 2018 at the Beaufor Mine and the Croinor Gold property.

30,000-metre program at Beaufor

The program at the Beaufor Mine will consist of 14,000 metres of definition drilling and 16,000 metres of exploration drilling. The program is designed to follow up on the strong, high-grade results of the last drilling program, which returned intersections of 61.48 g/t Au over 3.9 metres, 39.05 g/t Au over 1.8 metres and 15.44 g/t Au over 3.0 metres from the Zone Q sector, as well as 12.33 g/t Au over 1.6 metres and 14.25 g/t Au over 0.5 metres from the Zone 1700 sector (see press release dated January 11, 2018).

The goal of the new program is to continue to test the mineralization in the deposit extensions and at depth in order to increase the Beaufor Mine mineral resource. The main drill targets for the program are in the following sectors: Zone Q, Zone 1700, Zone 173, the western shear and the Beaufor fault at depth. Expectations for these targets are high based on the latest in-house interpretations and compilations.

“We strongly believe that this major investment in Beaufor could allow us to extend the life of the mine and possibly improve its economic profile,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “It is also perfectly aligned with our strategy of supporting the growth and profitability of our Abitibi mining operations.”

20,000-metre program on Croinor Gold

The latest drilling program on Croinor Gold enabled Monarques to increase the size of the deposit, which remains open along strike and at depth. The program returned numerous intersections with high-grade gold over good widths, such as 13.10 g/t Au over 4.0 metres, including 33.70 g/t Au over 1.0 metre, at a vertical depth of 58 metres in Hole CR-17-574, and 7.84 g/t Au over 9.0 metres, including 37.80 g/t Au over 1.0 metre and 12.70 g/t Au over 0.8 metres, at a vertical depth of 197 metres in Hole CR-17-577 (see press release dated December 14, 2017).

The purpose of the new 20,000-metre program, which will start in March 2018, will be:

  • To continue testing the mineralization at depth and to drill at the east and west ends of the deposit;
  • To drill within the Croinor Gold deposit in areas with insufficient data, in order to increase the indicated resource of the zones of the block model; and
  • To drill high potential targets in the vicinity of the deposit.

“Our understanding of the Croinor Gold deposit improved substantially last year,” Mr. Lacoste said. “It is important to note that the results obtained during the last drilling program continued to demonstrate the predictability of our geological model, which should make this next phase of work easier.”

“We are committed to creating value for Monarques,” he concluded. “We believe that these investments, combined with the resource calculations for the McKenzie Break and Swanson properties, will advance our mining projects significantly. All in all, 2018 is going to be a very busy year for Monarques.”

Quality control and qualified person
Sampling normally consists of sawing the core into two equal halves along its main axis and shipping one of the halves to the ALS Minerals laboratory in Val-d’Or for assaying. The samples are crushed, pulverized and assayed by fire assay with atomic absorption finish. Results exceeding 10.0 g/t are re-assayed using the gravity method. Certified standards and blanks are inserted into the sampling stream for quality control purposes.

The technical and scientific content of this press release has been reviewed and approved by Ronald G. Leber, P.Geo., and Petr Pelz, P.Geo., the Corporation’s qualified persons under National Instrument 43‑101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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.

Forward-Looking Statements

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 the 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

 

Sovereign Wealth Funds Investing In #Gold For “Long Term Returns” – PwC $AMK.ca $EXS.ca $MQR.ca

Posted by AGORACOM-JC at 10:50 AM on Tuesday, February 13th, 2018
  • Gold has outperformed equities and bonds over the long term – PwC Research
  • Gold is up 6.7% and 6.8% per annum over 10 and 20 year periods; Stocks and bonds returned less than 5.2% respectively over same period (see PwC table)
  • From 1971 to 2016 (45 years), “gold real returns were approximately 10% while inflation increased 4%”
  • Gold also valuable due to lack of correlation and hedge against inflation, currency devaluation and uncertainty

Source: PwC  Research via Bloomberg and WGC data

In new research, entitled ‘The rising attractiveness of alternative asset classes for Sovereign Wealth Funds‘ PwC explain how gold is viewed as an important diversifier by sovereign wealth funds, as both an important hedge and for long term returns.

PwC now class gold as a ‘re-emerging asset class’ on the basis of its long-term out performance of stocks and bonds, low correlation with traditional assets, resilience and high liquidity.

Gold along with private equity, real estate and infrastructure now accounts for 23% of a total $7.4 trillion of assets under management by sovereign wealth funds.

The report notes that from a peak of 40% in 2013, sovereign wealth funds’ investment into fixed income instruments such as government bonds declined to 30% by 2016. Due to record low bond yields, the funds decided to turn their attention to alternative assets to enhance returns.

The report notes the impressiveness of both gold’s long-term performance and low correlation to other assets in the long-term, compared to other alternatives.  In the short-term the benefit of gold’s liquidity is noted:

“[It] has one of the highest rates of daily volumes exchanged and can provide protection against short and medium term market corrections.”

The 23% allocation is expected to increase going forward, despite slight increases in rates recently and because of the likelihood of continuing very low interest rates.

This report comes at a time when we are seeing a growing interest by both large institutions and family offices in gold investment.

Like sovereign wealth funds, they are encouraged by gold’s long-term returns, high liquidity and resilience against economic shocks.

Long term outperformance to traditional asset classes

As we have seen in recent years gold, like all assets, has periods when it underperforms. This has been in the short-term in the last 3 to 5 years, but in the long-term – such as a 10, 20 or 40 year period, it is an entirely different story.

Indeed, gold’s recent underperformance, makes its long term outperformance all the more impressive.

The report shows that in the last ten years, gold delivered returns of 6.7% per annum, outperforming equities and bonds which returned just 4.9% and 4.5% respectively. This return was slightly greater over a 20-year period when gold returned 6.8% per annum, compared to equities and bonds which returned just 5.2% and 5.2%.

Over the long term, gold is one of the top three performing assets along with real estate and private equity.

“Gold’s long-term performance is attributed to three factors: increased demand from emerging markets, central banks becoming net buyers, and the emergence of new products, such as gold-based ETFs, which have simplified investing and made the material more accessible.” – PwC

PwC also note the importance of gold when it comes to protecting against currency devaluation:

“By introducing alternatives into the portfolio, the value of investments can be protected against a possible decrease in purchasing power of the currency the investments are denominated in. This can be done through instruments whose returns are somehow linked to inflation or have perceived intrinsic value. Assets with perceived intrinsic value, such as commodities, should increase in price alongside CPI. In cases of extreme inflation for example, gold has historically performed well, outpacing that inflation by 10%…gold performed well during inflationary periods. For example, from 1971 to 2016, gold real returns were approximately 10% while inflation increased 4% year-over-year.”

Gold doesn’t follow: Low correlation with traditional asset classes

“Gold can be a useful addition to investment portfolios compared to other commodities, due to lower correlation with traditional asset classes. Between June 1997 and June 2017, the correlation between gold and equity returns was close to zero (-0.07), thus showing its diversification benefit. The asset class maintains only a negative correlation over a ten-year period as well, standing at -0.05. Gold is more correlated with bond returns, standing at 0.58 on a ten-year basis, and at 0.28 on a twenty-year correlation (see Figure 27)…Gold has, over all considered time periods, no statistically significant correlation with hedge funds, private equity, infrastructure, and real estate.”

As with the other factors discussed by PwC this is pertinent for all considering investing in gold, from retail and pension investors, larger institutions and family offices. Much of gold’s low correlation is due to the fact that it is less affected by economic cycles and geo-political risks than other financial assets. This means it shows resilience at times when others are showing weakness.

This has been seen in recent days when stock markets saw massive volatility and very sharp corrections and gold was essentially flat. Year to date in 2018, gold is nearly 1.7% higher while many stock indices are down sharply – Euro Stoxx 50 is down more than 4%  year to date.

Resilient asset class during crises and instability

The gold price performs well in times of financial crises and extreme market events. During these times the correlation benefits become even more important, so it can provide portfolio insurance since it minimises portfolio losses.  PwC explain that this is what distinguishes gold from other assets:

 

“Gold has delivered negatively correlated returns when equity indices, such as S&P 500, have plummeted. Figure 28, 29, and 30 show gold’s performance during episodes of acute market crisis (GFC and the Sovereign Debt Crisis I and II). In these cases, the gold price started to rise significantly as the S&P 500 index decreased. Generally speaking, the gold price per ounce rose as investors perceived uncertainty in the stock markets, and decreased as these markets gave signs of normalisation.”

After the bloodbath of the last week, S&P500 investors will be interested to hear how gold correlates to the market”

“Among alternatives, when examining the correlation of returns with the S&P 500 index, gold is an excellent diversifier presenting the lowest correlation on a five-, ten-, and twenty- year basis (0.04, -0.05, -0.07 respectively).”

Liquid gold

The asset is particularly liquid in contrast to many of the other assets considered by SWFs, this is something very beneficial according to PwC:

” Stabilization funds may, in particular, benefit from adding gold among their holdings as they are required to hold highly liquid assets to counter the effects of sudden macroeconomic shocks.

Gold has distinguished itself from other alternative asset classes as it has been more liquid, with USD 224 bn traded on average on a daily basis in 2016″.

Conclusion: Investment and pension case for gold is strong

PwC do not beat about the bush when it comes to their positivity towards  gold as an investment. They synopsise and elucidate many of gold’s benefits which we have long been highlighting in recent years:

“All these features suggest that gold as an investment class can offer reliable support, not only during uncertain market and political conditions, such as periods of high inflation, stock market crashes, and geopolitical instability, but also under normal market conditions.”

They clearly see gold as playing a crucial role in the portfolios of sovereign wealth funds and indeed the majority of investors across the spectrum.

“The investment case for gold, during periods of market uncertainty, has proven to be strong, with the price of gold having surged rapidly and having countered the negative effects of adverse market conditions. Hence, investors can consider gold for diversification and long-term performance.”

Pwc Report on gold can be accessed here

Watch the PwC World Gold Council interview about the report here

Related Content

Research: Gold As a Safe Haven Asset

CNBC: Is gold the ultimate safe haven?

News and Commentary

Gold steady on weaker dollar ahead of U.S. price data (Reuters.com)

Asian markets continue upswing as global rebound continues (MarketWatch.com)

Gold recoups half of last week’s loss as dollar softens (MarketWatch.com)

U.S. runs January budget surplus of $49 billion, Treasury says (MarketWatch.com)

VIX manipulation costs investors billions, whistle-blower tells CFTC (Bloomberg.com)


Source: Goldchartsrus via Goldseek

Silver Expected To Rise After Drop Versus Gold – Everbank (GoldSeek.com)

Gold demand in technology sector advances in 2017 for the first time since 2010 (ScrapRegister.com)

Insider trading has been rife on Wall St – The Economist (Economist.com)

The Fed’s Impossible Choice, In Three Charts (DollarCollapse.com)

When Will It End? Bloodied Traders Are Seeking Clues (Bloomberg.com)

Gold Prices (LBMA AM)

13 Feb: USD 1,329.40, GBP 955.04 & EUR 1,077.61 per ounce
12 Feb: USD 1,321.70, GBP 955.19 & EUR 1,077.45 per ounce
09 Feb: USD 1,316.05, GBP 945.58 & EUR 1,072.84 per ounce
08 Feb: USD 1,311.05, GBP 944.87 & EUR 1,071.13 per ounce
07 Feb: USD 1,328.50, GBP 956.12 & EUR 1,075.95 per ounce
06 Feb: USD 1,344.65, GBP 962.50 & EUR 1,083.52 per ounce
05 Feb: USD 1,337.10, GBP 947.20 & EUR 1,072.49 per ounce

Silver Prices (LBMA)

13 Feb: USD 16.61, GBP 11.94 & EUR 13.46 per ounce
12 Feb: USD 16.43, GBP 11.86 & EUR 13.39 per ounce
09 Feb: USD 16.36, GBP 11.83 & EUR 13.37 per ounce
08 Feb: USD 16.35, GBP 11.70 & EUR 13.36 per ounce
07 Feb: USD 16.69, GBP 12.02 & EUR 13.52 per ounce
06 Feb: USD 16.81, GBP 12.07 & EUR 13.59 per ounce
05 Feb: USD 16.88, GBP 12.01 & EUR 13.56 per ounce

https://news.goldcore.com/

Source: http://news.goldseek.com/GoldSeek/1518511260.php

Monarques Gold $MQR.ca Announces a Positive Updated Prefeasibility Study for the Croinor Gold Property $MUX.ca $SII.ca

Posted by AGORACOM-JC at 8:11 AM on Thursday, February 8th, 2018

Emerging gold producer in Abitibi (CNW Group/Monarques Gold Corporation)

The study shows improved project economics and an increase in reserves

Highlights

  • 10% increase in proven and probable reserves
  • 16% decrease in average operating cost, to US $639 per ounce of gold
  • 13% decrease in total costs, to US $902 per ounce of gold
  • Average annual gold production of 31,472 ounces over four years
  • After-tax IRR of 30%
  • Project still has excellent exploration potential

MONTREAL, Feb. 8, 2018MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX-V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to report the results of an updated prefeasibility study for its wholly-owned Croinor Gold property near Val-d’Or, Québec. The prefeasibility study was prepared by InnovExplo Inc. in conjunction with Amec Foster Wheeler and WSP Canada Inc.

Located near Route 117 (Trans-Canada Highway), the Croinor Gold property is accessible by gravel road, and has an access ramp and development shaft. In addition, the Val-d’Or mining camp is a recognized, world-class mining camp with a skilled workforce and high-quality infrastructure. These are all attributes that favour the development of the Croinor Gold mine.

The prefeasibility study presents an underground operation that produces ore to be processed at the Beacon mill. The project has an expected mine life of less than four years, including one year of pre-production. The study highlights are presented below, and the prefeasibility study itself will be filed on SEDAR in the coming weeks. Note that all amounts in this press release are in Canadian dollars unless otherwise indicated.

PREFEASIBILITY STUDY HIGHLIGHTS

The prefeasibility study indicates that, at a gold price of US $1,280/oz and an exchange rate of CA $1.28/US $1,  the Croinor Gold mine could generate an after-tax net present value (“NPV”) of $18.3 million (using a 5% discount rate) and an after-tax internal rate of return (“IRR”) of 30%. The mine could produce an average of 31,472 ounces per year for the life of the mine, at an average operating cost of US $639/oz and an estimated total cost of US $902/oz.

Table of financial parameters

Parameter

Value

Proven and probable reserves

602,994

tonnes mined

Proven and probable reserves grade (1)

6.66

g/t mined

Total gold reserves

125,889

oz

Gold recovery

97.5

%

Minimum daily production

446

tpd

Maximum daily production

583

tpd

Average annual gold production

31,472

oz

Total amount of gold produced

125,889

oz

Average production cost

$175.02

/t

Average operating cost

US $639

/oz

Total cost per ounce

US $902

/oz

Total gross revenue

$206.3

million

Capital cost (2)

$50.7

million

Total operating cost

$94.6

million

Total project cost

$145.3

million

Net cash flow (before taxes and royalties)

$40.9

million

Estimated taxes

$15.7

million

Net cash flow

$25.2

million

Pre-tax NPV (5% discount rate)

$31.9

million

Pre-tax IRR

47.5

%

After-tax NPV (5% discount rate)

$18.3

million

After-tax IRR

30.0

%

Payback period

2.2

years

Pre-production period

12

months

Mine life (production period)

2.6

years

(1)

Volume and grade account for dilution and ore recovery.

(2)

Includes approximately $17.2 million in sustaining capital.

 

“This updated prefeasibility study has significantly improved the profitability forecasts for the Croinor Gold project, as well as increasing the proven and probable reserves,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “It is also important to note that the study did not include the results from the 25,645 metres of drilling done on and around Croinor Gold since November 2015. Based on the results received to date, it is clear that the project still has excellent exploration potential. Our goal for our future drilling programs is to extend the life of the Croinor Gold project by increasing the resource.”

PREFEASIBILITY STUDY DETAILS

Mineral resource

The mineral resource estimate used in the prefeasibility study was published previously in a report titled “Technical Report and 2015 Mineral Resource Estimate Update for the Croinor Gold Property”, dated January 8, 2016 (Poirier et al., 2016 ).

At a cut-off grade of 4 g/t Au, the measured resource is 80,100 tonnes at 8.44 g/t Au, or 21,700 ounces, the indicated resource is 724,500 tonnes at 9.20 g/t Au, or 214,300 ounces, and the inferred resource is 160,800 tonnes at 7.42 g/t Au, or 38,400 ounces. Only the measured and indicated resource was used for the prefeasibility study.

Mineral reserves

Mineral reserves were classified in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves. The mineral reserves for the project take into account the dilution and ore recovery associated with the selected mining method.

MSO (Mineable Shape Optimizer) software, a CAE Studio 5D software application, was used to determine the resources to be converted to reserves. The MSO software defines the mineral zones from the block model based on specified stope parameters, and the stope shapes are then optimized manually.

Two mining methods appear to be the best suited to the Croinor deposit: long hole, and room and pillar. Two MSO runs were done on the block model to select the most appropriate method, using the parameters shown below for the two methods. The manual stope design takes into account a minimum mining width of 1.8 m for the long-hole stopes and a mining height of 1.8 m for the room-and-pillar stopes.

Design parameters for the long-hole mining method:

  • Cut-off grade: 4.42 g/t
  • Minimum mining width: 1.8 m (stope thickness)
  • Mining dilution of 30% on the hanging wall (grade = 0 g/t)
  • Minimum angle of the stope footwall: 43 degrees
  • Sublevel interval of 15 m along dip

Design parameters for the room-and-pillar mining method:

  • Cut-off grade: 4.57 g/t
  • Minimum mining height: 1.8 m
  • Mining dilution of 5% on the hanging wall (grade = 0 g/t)
  • Maximum mining width: 3 m (stope thickness)
  • Maximum stope angle of 45 degrees.

The estimated proven and probable reserves, as summarized in the following table, totals 129,292 ounces after applying the appropriate mining recovery and dilution factors for the method selected.

Estimate of the diluted mineral reserves

Category

Tonnes 

Grade

Ounces

(t)

(g/t)

(oz)

Proven reserves

166,540

5.33

28,543

Probable reserves

436,454

7.18

100,759

Total proven and probable reserves

602,994

6.66

129,292

  • The independent qualified persons for the mineral reserve estimate, as defined by National Instrument 43-101, is Laurent Roy, Eng., OIQ #109779, of InnovExplo Inc. The effective date of the estimate is January 19, 2018.
  • The economic viability of the mineral reserves has been demonstrated.
  • Results include dilution of 30% for the long-hole stopes, based on a minimum mining width of 1.8 m, and 5% dilution for the room-and-pillar stopes, based on a minimum mining working height of 1.8 m.
  • Results reflect an ore recovery of 95% for the long-hole stopes (pillars left in place are not included in the estimate) and 85% for the room-and-pillar stopes.
  • Gold recovery at the Beacon mill is 97.5%.
  • The mineral reserves were compiled using cut-off grades of 4.42 g/t Au (long hole) and 4.57 g/t Au (room and pillar). The appropriate cut-off grade will vary depending on the economic context and the operating parameters determined.
  • A density of 2.80 t/m3 was used.
  • Ounce (troy) = tonnes x grade / 31.1035. Calculations used metric units (metres, tonnes and g/t).
  • The mineral reserves were estimated using a long-term gold price of CA $1,656.68 per ounce (gold price of US $1,252.21 per ounce and an exchange rate of CA $1.323 /US $1).
  • Estimated tonnage and ounces were rounded to the nearest hundred. Any discrepancies in the totals are due to the effect of rounding; rounding followed the recommendations in Form 43-101F1.
  • CIM guidance and definitions were followed in the preparation of this mineral reserve estimate.
  • InnovExplo 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.

Ore recovery and dilution

The dilution and recovery factors applied in the mine plan and the reserve estimate are based on a geomechanical assessment of the rocks and the application of factors commonly used for the selected method.

For the long-hole method, the stopes and pillars were established manually based on the geomechanical assessment. A dilution factor of 30% at a grade of 0 g/t was applied for the long-hole stopes and a 95% recovery factor was then applied to the remaining tonnage.

For the room and pillar method, a 5% dilution factor was applied to the stopes, which were then evaluated using a recovery factor of 85%.

Cut-off grade

Each stope that was close to the cut-off grade was evaluated individually to determine whether it should be included in the study or discarded. A metal price of US $1,252.21 at an exchange rate of CA $1.323/US $1 was used to calculate the cut-off grade. The remaining parameters used in the cut-off grade calculation are shown in the following table.

Cut-ff grade parameters

Category

Long hole

Room and pillar

Operating cost

$175.96/t

$225.54/t

Mint cost

$5.00/oz

$5.00/oz

Mill recovery

97.5%

97.5%

Mining dilution

30%

5.0%

Cut-off grade

4.42 g/t

4.57 g/t

Mining

The proposed mining plan for the Croinor Gold property covers underground mining of narrow subvertical veins. A large portion of the identified resources dip at less than 45 degrees, which is not favourable for long-hole mining, as the broken ore does not flow easily.

The mining plan for the Croinor Gold property comprises a combination of conventional and mechanized mining. The approach in the study was to favour the long-hole mining method wherever possible. When the angle of the footwall was less than 43 degrees, room and pillar mining was selected. The mineralized zones were defined using MSO software and stope design was then done manually to optimize recovery.

The ore will be transported to the surface using a combination of 3.5-yard and 6-yard scooptrams and 30-ton trucks. Waste material will either be brought to the surface or used to backfill mined-out stopes when possible. The deposit will be accessed via a ramp. The existing ramp will be restored to level 125 and a new section will be excavated to access all the reserves. The production drifts will be accessed via crosscuts connecting to the ramp.

Existing mine infrastructure

The Croinor deposit is serviced by a ramp measuring approximately 300 m long and 4 m high by 4.5 m wide extending to level 125 (38 m), and by a 195-m deep, three-compartment shaft. Development was driven on four levels: 496 m on level 125; 560 m on level 250; 233 m on level 375; and 730 m on level 500. Approximately 320 m of raise development was also done. The Croinor Gold mine is currently flooded to the portal entrance.

Production schedule

InnovExplo developed a preliminary development and production schedule that takes into account the existing underground workings. Mine operation is based on a production schedule of two 10-hour shifts per day, seven days per week. The underground mine is designed for mining over a period of nearly four years, including one year of pre-production, to produce 602,994 tonnes of ore grading 6.66 g/t. Using a mill recovery of 97.50%, this translates into 125,889 ounces of gold produced over the period.

The ore will be mined using the long-hole and room-and-pillar methods at a ratio of 62% to 16%, with the remaining 22% of the ore coming from development work. The mine plan includes all the development required to access and mine the mineralized zones. The following table shows the production schedule over the life of the mine.

Production schedule over the life of the mine (from the prefeasibility study)

Production

Year 1  

Year 2  

Year 3  

Year 4  

Total  

Development (t)

35,907

57,502

30,026

9,731

133,165

Grade (g/t)

4.44

5.34

4.32

2.89

4.69

Long hole (t)

22,132

107,484

128,904

116,488

375,007

Grade (g/t)

6.30

7.26

6.84

6.81

6.92

Room and pillar (t)

4,362

36,657

50,984

2,818

94,821

Grade (g/t)

6.18

8.90

8.36

6.42

8.41

Tonnage mined (t)

62,401

201,642

209,914

129,036

602,994

Grade (g/t)

5.22

7.01

6.85

6.50

6.66

Recovery (%)

97.50%

97.50%

97.50%

97.50%

97.50%

Gold produced (oz)

10,211

44,291

45,079

26,308

125,889

Processing and metallurgy

The ore mined at Croinor Gold will be processed at the Beacon mill in the Val-d’Or area, which will have excess capacity during the period that the Croinor Gold mine is in production. Ore mined previously from the Croinor open pit was processed at a local mill, and the actual results of that processing were used as a basis for the 97.50% gold recovery used in the current study.

Infrastructure

A 25 kV power line will be installed between the former Chimo mine and the Croinor Gold property to supply electricity to the property. To reduce haulage distances, a new 8-km, grade 3 logging road will be built, using a bridge/culvert system to cross a 25-m wide river. The existing roads leading to the site and those on the site will need to be upgraded.

The mine will be dewatered and the 300 m ramp and approximately 720 m of the 2 km of drifts on the existing levels will be restored and extended to meet the mine’s needs. The current 195-m shaft will be rehabilitated and used as a ventilation raise and escapeway. The ore and waste will be hauled to surface via the ramp. One of the existing buildings will be outfitted for use as a warehouse, and other buildings will be built to serve as changing facilities, offices, garages and a core shack.

Environmental studies and permits

The Corporation has a certificate of authorization for mine operation issued in September 2010 and a certificate of authorization for mill operation issued in February 2017. Other studies and permits relating to the environment, site restoration and the crown pillar, which are required for mine operation, have also been carried out or obtained. An authorization for mine dewatering and other accessory permits will be obtained when the project starts.

Various permits and authorizations will also be obtained for the transportation infrastructure, and compliance of plans and specifications with the fisheries protection provisions will be verified with the regulatory authorities if required.

Operating costs

Operating costs over the life of the mine are estimated at $817.91 per ounce. The following table shows the cost breakdown.

Summary of total life-of-mine operating costs

Description

Total cost

Unit cost

Unit cost

($ millions)

($/t)

($/oz)

Definition drilling

1.1

2.04

9.55

Stope development

23.2

42.84

200.20

Mining

22.6

41.75

195.10

Monarques mining staff (salaries)

9.8

18.08

84.50

Contractors (indirect costs)

14.9

27.56

128.80

Energy

4.8

8.90

41.61

Milling

11.0

20.39

95.29

Ore transportation

4.3

7.88

36.81

Environment

3.0

5.58

26.07

Total

94.6

175.02

817.91

Capital costs

Pre-production costs are estimated at $33.53 million, including $22.61 million in capitalized operating costs, net of production revenue received during the pre-production period. Sustaining capital is estimated at $17.20 million, excluding $0.96 million for final closure costs.

Capital cost breakdown

Description

Pre-production

Sustaining

Total costs

($ millions)

($ millions)

($ million)

Capitalized revenue

(16.43)

(16.43)

Capitalized operating costs

22.61

22.61

Dewatering and rehabilitation

1.59

0.13

1.72

Surface infrastructure (temporary)

0.69

0.36

1.06

Mining infrastructure

8.08

0.30

8.38

Electrical distribution (surface)

1.69

0.51

2.19

Underground pumping system

0.20

0.42

0.62

Underground ventilation system

0.63

0.07

0.70

Lateral development

9.47

13.90

23.37

Beacon mill upgrade

2.17

1.28

3.46

Tailings facility upgrade

0.39

0.39

Mobile equipment

0.22

0.23

0.45

Environment

2.20

2.20

Total

33.53

17.20

50.73

Financial analysis

An after-tax model was developed for the Croinor Gold property. All costs are in 2017 Canadian dollars, with no allowance for inflation or escalation. The Croinor Gold property is subject to the following taxes:

  • Quebec mining duties
  • Federal and provincial income taxes

The economic valuation of the project was performed using the Internal Rate of Return (IRR) and Net Present Value (NPV) methods. The IRR on an investment is defined as the rate of interest earned on the unrecovered balance of an investment. The NPV method converts all cash flows for investments and revenues occurring throughout the planning horizon of a project to an equivalent single sum at present time at a specific discount rate. The discount rate used in the analysis is 5%. According to the NPV method, a positive NPV represents a profitable investment where the initial investment plus any financing interests are recovered.

Qualified persons

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, Eng., Monarques’s qualified person under National Instrument 43‑101.

The prefeasibility study was prepared by InnovExplo, an independent firm, under the supervision of the following independent qualified persons (as defined by National Instrument 43-101): Laurent Roy, Eng., and Denis Gourde, Eng., for the engineering and economic evaluation component; and Karine Brousseau, Eng., for the resource component. The technical content of this press release has been reviewed and approved by the qualified persons of InnovExplo.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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.

Forward-Looking Statements

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

View original content with multimedia: http://www.newswire.ca/en/releases/archive/February2018/08/c1472.html

Jean-Marc Lacoste, President and Chief Executive Officer, 1-888-994-4465, jm.lacoste@monarquesgold.com, www.monarquesgold.com; Elisabeth Tremblay, Senior Geologist – Communications Specialist, 1-888-994-4465, e.tremblay@monarquesgold.com, www.monarquesgold.comCopyright CNW Group 2018

Monarques Gold $MQR.ca Produces 5,444 Ounces of #Gold and Generates $10.3 Million in Revenue in Q2 2018 $MUX.ca $SII.ca

Posted by AGORACOM-JC at 9:30 AM on Thursday, January 18th, 2018

Monarquesgold hub large

  • Ounces produced at Beaufor up 62% from the prior quarter
  • Monarques produced 5,444 ounces of gold in Q2 2018, a 62% increase over the 3,380 ounces produced in the prior quarter by the previous owner, and a 16% increase over the quarterly average of 4,715 ounces produced during the prior nine-month period.
  • The Corporation recorded revenue of $10.3 million in the second quarter based on an average gold price of $1,612 per ounce (US $1,268) and 5,444 ounces sold combined with toll milling activities.

MONTREAL, Jan. 18, 2018 – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to report its production results and highlights for the second quarter ended December 31, 2017 (“Q2 2018”). All amounts are in Canadian dollars unless otherwise indicated.

Q2 2018 Production Highlights

  • Monarques produced 5,444 ounces of gold in Q2 2018, a 62% increase over the 3,380 ounces produced in the prior quarter by the previous owner, and a 16% increase over the quarterly average of 4,715 ounces produced during the prior nine-month period.
  • The Corporation recorded revenue of $10.3 million in the second quarter based on an average gold price of $1,612 per ounce (US $1,268) and 5,444 ounces sold combined with toll milling activities.
  • The Corporation reported strong results from its drilling program at the Beaufor mine, including 61.48 g/t Au over 3.9 metres (see press release dated January 11, 2018), which confirms the strong exploration potential in the area east of Zone Q.

“We exceeded our target for the quarter by producing more gold than anticipated,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “Our toll milling activities were also strong. With the addition of Eldorado Gold (TSX:ELD; NYSE:EGO) and Nottaway Resources, the Camflo mill operated at 72% capacity during the last quarter, and based on the contracts signed for 2018 with Nottaway and Wallbridge Mining, among others, we expect to continue to increase mill productivity in the next quarter.  On the exploration side, our recent drilling program at Beaufor was a success, and we plan to continue drilling to increase the mine’s gold resource.”


 

Q2 2018 Corporate Highlights

  • On October 2, 2017, Monarques completed the acquisition of Richmont Mines’ Quebec assets, combined with a $6.5 million financing and a US $4.0 million credit facility (see press release).
  • On October 26, 2017, Monarques announced the results of an updated NI 43-101 Mineral Resource Estimate on its wholly-owned Wasamac gold project, which established a Measured and Indicated resource of 2,587,900 ounces and an Inferred resource of 293,900 ounces of gold (see press release).
  • On December 14, 2017, Monarques reported strong results from its drilling program at the Croinor Gold deposit, including 7.84 g/t Au over 9.0 metres (29.5 feet) (see press release). These new results are additional evidence that the geological model provides predictability and that the Croinor Gold deposit remains open along strike and at depth.
  • On December 21, 2017, Monarques announced the acquisition of the McKenzie Break and Swanson gold properties from Agnico Eagle Mines Limited (NYSE:AEM; TSX:AEM) (see press release). This transaction allowed the Corporation to consolidate its land position in the Abitibi region by adding two high-quality gold projects to its portfolio, which, along with Wasamac and Croinor Gold, brings the total of Monarques’ advanced projects to four.
  • With the closing of the recent flow-through financings and the exercise of stock options and warrants in the month of December, the Corporation had over $17 million in cash as of December 31, 2017.

Next Steps

  • Monarques’ goal for the coming quarters is to increase the throughput of the Camflo mill with ore from the Beaufor mine and toll milling activities while reducing its production costs. The priorities at the Beaufor mine are to steadily improve productivity and increase grade through more selective mining.
  • The Corporation will also assess the possibility of restarting the Beacon mill in the second half of the year, as it foresees increased demand for toll milling services.
  • Finally, Monarques will continue exploring the Beaufor and Croinor Gold properties and will initiate new programs and/or technical studies to advance the Wasamac, McKenzie Break and Swanson gold projects.

“2018 will be another milestone year for Monarques, as we will pursue our growth strategy with the goals of improving our financial performance, increasing our gold resources and continuously enhancing the value of Monarques for our shareholders,” concluded M. Lacoste.

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, Eng., the Corporation’s qualified person under National Instrument 43‑101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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.

Forward-Looking Statements

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.

Monarques Gold $MQR.ca intersects 61.48 g/t Au over 3.9 metres (12.8 feet) at the Beaufor Mine $MUX.ca $SII.ca

Posted by AGORACOM-JC at 8:54 AM on Thursday, January 11th, 2018

  • New zones subparallel to Zone Q intersected with significant grades of:
    • 61.48 g/t Au over 3.9 metres, including 361.00 g/t Au over 0.7 metres
    • 39.05 g/t Au over 1.8 metres, including 99.95 g/t Au over 0.7 metres
    • 15.44 g/t Au over 3.0 metres, including 49.55 g/t Au over 0.8 metres
  • A new area, Zone 1700, returns a grade of:
    • 12.33 g/t Au over 1.6 metres, including 36.25 g/t Au over 0.5 metres

MONTREAL, Jan. 11, 2018  – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to report the results of its exploration drilling program at the Beaufor Mine. The 2,239-metre program was aimed at increasing the resource in two sectors of the Beaufor Mine, Zone Q and Zone 1700.

Zone Q Sector

Zone Q is the main zone of current production at the Beaufor Mine.

Two new holes were drilled in the eastern extension of Zone Q, outside the known mineralized envelope, to test the continuity of the structure and check for the presence of mineralized veins in the hangingwall and footwall of the zone. Holes 150-60a and 150-61 (see Sections 1810E and 1855E) were drilled to a depth of 534 and 558 metres, respectively. They intersected Zone Q, as well as several mineralized veins (QH Zone) located 20 to 60 metres from the hangingwall of the zone. A number of mineralized veins were also intersected 10 to 100 metres away from the Zone Q footwall (QF Zone).

These new mineralized zones are similar in nature to the typical known veins at the Beaufor Mine, which are quartz-tourmaline veins with disseminated pyrite associated with diorite dikes.

The best results returned by Zones QH and QF were as follows:

  • Hole 150-60a intersected 15.44 g/t Au over 3.0 metres, including 49.55 g/t Au over 0.8 metres; and 7.70 g/t Au over 2.0 metres, including 14.10 g/t Au over 0.5 metres.
  • Hole 150-61 intersected 61.48 g/t Au over 3.9 metres, including 361.00 g/t Au over 0.7 metres; and 39.05 g/t Au over 1.8 metres, including 99.95 g/t Au over 0.7 metres.

These two holes, spaced at about 45 metres apart, appear to confirm the lateral continuity of Zone QH and Zone Q, which may remain open to the east.

“These initial drill results confirm the strong exploration potential in the area to the east of Zone Q,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “The intersection of several lenses with significant grades on both sides of the zone is ample reason to explore the area in more detail. Our strategy is to continue testing the mineralization in the east and at depth in order to increase the mineral resource at the Beaufor Mine.”

Zone 1700 Sector

The Zone 1700 sector lies east of the 1500 level of the Beaufor Mine, 458 metres below surface. A few historical holes intersected mineralized lenses with gold values of over 3 g/t.

Four new holes were drilled to test the extensions of those mineralized lenses. The results for holes 152-18, 160-14, 168-04 and 176-01 provided a better understanding of the structure and size of the lenses (see 1500 level plan). Zone 1700 remains open vertically but is not laterally continuous and may be confined by two structures striking N80°.

The most significant grades were intersected in holes 160-14 and 152-18 and appear to indicate the presence of two new zones:

  • Hole 160-14 intersected 10.75 g/t Au over 0.7 metres; 12.33 g/t Au over 1.6 metre, including 36.25 g/t Au over 0.5 metres; and 10.42 g/t Au over 1.1 metres, including 20.30 g/t Au over 0.5 metres.
  • Hole 152-18 intersected 14.25 g/t Au over 0.5 metres.

The extensions of these mineralized lenses are still not well defined and additional drilling is needed for a better understanding of their geometry.

Quality control and qualified person
Sampling normally consists of sawing the core into two equal halves along its main axis and shipping one of the halves to the ALS Minerals laboratory in Val-d’Or for assaying. The samples are crushed, pulverized and assayed by fire assay with atomic absorption finish. Results exceeding 10.0 g/t are re-assayed using the gravity method. Certified standards and blanks are inserted into the sampling stream for quality control purposes.

The technical and scientific content of this press release has been reviewed and approved by Élise Bourgault, P.Geo., the Corporation’s qualified person under National Instrument 43‑101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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.

Forward-Looking Statements

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.

Table 1:  Summary of drill results on the Beaufor Mine

Zone Q sector: True width is approximately 80% of the length of the intersection.
Zone 1700 sector: True width is approximately 50% of the length of the intersection.

SOURCE Monarques Gold Corporation

View original content with multimedia: http://www.newswire.ca/en/releases/archive/January2018/11/c3572.html

Jean-Marc Lacoste, President and Chief Executive Officer, 1-888-994-4465, jm.lacoste@monarquesgold.com, www.monarquesgold.com; ElisabethTremblay, Senior Geologist – Communications Specialist, 1-888-994-4465, e.tremblay@monarquesgold.com, www.monarquesgold.comCopyright CNW Group 2018

#Gold jumps to near 4-month high as US dollar slips sharply $AMK.ca $EXS.ca $MQR.ca

Posted by AGORACOM-JC at 1:35 PM on Wednesday, January 10th, 2018
  • Gold jumped to its highest in nearly four months on Wednesday
  • US dollar tumbled to a six-week low versus the Japanese yen and slid against the euro,
  • lifting assets priced in the US currency and offsetting a rise in global yields

LONDON (Jan 10): Gold jumped to its highest in nearly four months on Wednesday as the US dollar tumbled to a six-week low versus the Japanese yen and slid against the euro, lifting assets priced in the US currency and offsetting a rise in global yields.

The US dollar fell as much as 1.2% against the yen after the Bank of Japan’s move to trim its long-dated government bond purchases earlier this week, putting the US currency on track for its biggest two-day drop in nearly eight months.

The BoJ move also lifted bond yields across the world, generally a negative factor for gold as it increases the opportunity cost of holding non-interest bearing bullion. However, the impact of the US dollar’s fall outweighed that factor.

Spot gold was up 0.9% at US$1,324.40 an ounce at 1107 GMT, having earlier touched its highest since Sept. 15 at US$1,326.56. US gold futures for February delivery were up US$11.50 an ounce at US$1,325.20.

“The story in the markets right now is most certainly the yen story, and that is going to provide enough support (to gold) for the yield story to be ignored,” Saxo Bank’s head of commodity strategy Ole Hansen said. “Dollar/yen is down more than 1%.”

“We are seeing underlying demand for gold here as the year kicks off,” he added.

The US dollar’s slide against the yen also saw it move lower against the euro, with the single currency up 0.6% versus the US unit.

Major government bond yields hit multi-month highs on Wednesday as investors reevaluated the likelihood of continued easy-money policies by the world’s major central banks following the BoJ move. The 10-year US Treasury yield hit 2.57% for the first time since March.

Among other metals, palladium was down 0.1% at US$1,098.50 an ounce, after hitting a record high on Tuesday at US$1,111.40. Tightening emissions standards and a switch away from diesel cars to more palladium-heavy gasoline models has shored up demand expectations for the autocatalyst metal.

“Yesterday once again saw moderate outflows from palladium ETFs,” Commerzbank said in a note. “Since the start of the year, holdings have already been reduced by just shy of 13,000 ounces. The trend seen in recent years appears to be continuing.”

“That said, the exodus from palladium ETFs since the end of 2015 has done nothing to prevent the massive price rise,” it added.

Silver was up 1.2% at US$17.16 an ounce, while platinum was 0.1% higher at US$965.90 an ounce.

Source: http://www.theedgemarkets.com/article/gold-jumps-near-4month-high-us-dollar-slips-sharply

#Gold Has Best Year Since 2010 With Near 14% Gain In 2017 #Mining $AMK.ca $EXS.ca $MQR.ca $GGX.ca $GR.ca $GZD.ca

Posted by AGORACOM-JC at 2:00 PM on Wednesday, January 3rd, 2018
  • Gold posted second straight annual gain in USD in 2017
  • Gold in 2017: up 13.6% USD, up 2.7% GBP, down 1.4% EUR
  • 2017 is gold’s best year since 29.5% gain in 2010
  • Strong performance despite rate hikes and stock bubble
  • India’s gold imports surged 67% in 2017, Turkish, Chinese demand strong
  • Gold finished 2017 with longest rally since June 2016
  • 2018: Currency War and The Year of the Phoenix?

Gold waved a very positive goodbye to 2017 and was delighted to shout ‘Happy New Year!’ to all investors. In doing so, gold bullion prices advanced for an eighth session yesterday, extending its longest stretch of gains since mid-2011.

This was the perfect start to a new year which followed an annual surge of nearly 14%. 2017 is the second year of gains for gold. In 2016 it posted 14% gains, its best gains since the 29.5% gain in 2010.

Gold bullion’s stellar advance is even more impressive when one considers the extremely mixed year that was 2017. It ranged from Federal Reserve rate hikes to rapidly advancing stock markets. The year’s events were like a tug-of-war on the drivers of the gold price.

Gold: bad or good?

2017 on paper perhaps should not have seen a 14% gain in the gold price.

There was an acceleration in global economic growth as countries began to keep pace with one another. Much to Trump’s delight official figures showed the U.S. economy performed well. Not only did the the unemployment rate touch a record low, but inflation also remained subdued.

Meanwhile the Fed hiked interest rates three times, something many believed would be the kryptonite to gold’s superhuman strength.

Investments that are often seen to as alternatives to gold performed exceedingly well. The U.S. stock market continued its record-breaking rally, while bitcoin and other cryptocurrencies experienced what can only be described as a bubblicious and parabolic rise in the last few weeks of 2017.

And, right at the last minute the Republicans managed to pass a very dodgy looking tax bill, prompting Trump to peacock around even more.

Following Trump’s election there had been high hopes for the price of gold. After all, here was a man who had been elected without political experience and on the back of creating social and economic divisions. However, following Trump’s inauguration there was a post-election sell-off at the start of the year. Many were clearly feeling positive about Trump’s impact on both the domestic and international stage.

As various unexpected scenarios played out, from failure to get much done in the White House to sober-rattling with North Korea, the precious metal began to climb. Towards the end of summer, in early-September the gold price hit a year-high of $1346/oz. It then quickly sold off.

Whilst the yellow metal finished the year with a respectable run of gains, the final figures did not match those of say, the S&P 500 which climbed by over 19% in the same year.

Does this mean that relatively speaking the gold price is something we shouldn’t be delighted with? Not at all. The year of 2017 was one of arguably bearish events for the price of gold yet it still made near 14% gains, better than money in a savings account.

This second year of climbing by gold should serve as a timely reminder that the precious metal is not something that will be poked and prodded thanks to short-term, unsustainable economic and political events. Gold investment is for the long-term and there is little benefit thinking that one event will affect the reasons to hold gold.

All of the ‘positives’ of 2017 such as low inflation, Fed hikes and tax bills being passed arguably came about because of farcical economic readings and political manoeuvring. None of the statistics or decisions made as a result are sustainable, particularly against a background of increasing geopolitical risk. The gold price reflected this, particularly in its reactions to what should have been bearish Fed-rate hikes.

It is safe to say that in 2018 gold will be sent significantly higher thanks to ongoing US dollar weakness, higher debt and deficits,  stronger growth combined with potential wage inflation, coming together in a perfect storm with geopolitical risks.

One of the key reasons for gold’s 14% climb in USD terms is thanks to the weakness in the US Dollar itself. There was a strong correlation between the gold price and the greenback in 2017. It’s also worth mentioning that the level of yield of the inflation-protected 10-year Treasuries at the end of the year was similar to the level at the beginning of the year (about 0.5 percent). People do not want the global reserve currency anymore.

2018: The year of the Phoenix?

Nearly 30 years ago The Economist predicted that 2018 would be the year of a new currency uprising. You have to give the magazine some kudos for this prediction. Given what we saw in 2017 with both the rise in bitcoin, cryptocurrencies generally and, of course, efforts by Russia and China to build financial allegiances away from the US dollar, a new world currency in 2018 is more likely than not.

That’s right, whilst the financial media can talk as much as they like about how great 2017 turned out to be, there were plenty of events behind the mainstream wall that were clearly preparing for a financial world where decisions of the last decade come back to bite us.

Moves by Russia and China to step away from US dollar hegemony continued and rapidly progressed in 2017. This forthcoming year does not suggest any sign of let up. Much of the moves away from the US dollar involve the use of gold as the intermediary currency. Exchanges and trade agreements are in full swing.

We also cannot mention 2017 without bitcoin. This was the year that the lead cryptocurrency truly arrived and established itself in the minds of the establishment.

As we have explained several times, bitcoin is not a substitute for gold. It has attracted a lot of hot money in the last year, but long-term this is not to the detriment of gold.

The upward trajectory of bitcoin places it firmly in bubble territory. This is good for gold, as Walter Otstott, a senior broker at Dallas Commodity Co. explained to Bloomberg. ‘If 2017’s hottest asset comes crashing back to Earth, speculative money may be drawn back into gold…He sees gold peaking at $1,600 an ounce next year, compared with the price on Friday of about $1,297.’

Our own experts also see great things for gold this year, particularly thanks to geopolitical threats by those truly looking to end US-power : North Korea.

GoldCore’s Mark O’Byrne told Bloomberg:

‘Gold could end the year at $1,500 if geopolitics heats up in North Korea or the Middle East.’ This is despite gold’s lack of reaction at the various threats from both Trump and Kim Jong-Un. However, gold loves uncertainty and this is certainty a situation which is dripping in volatile uncertainty.

2018: Will it hold its own against the last two years?

2017 showed us that there is still a show to be played out by governments and central banks. There is still a farce to be seen when it comes to reassuring us about the state of the global economy.

Gold’s price rise and the dollar’s weakness shows that there are question marks over this recovery. Gold may be indicating  the reality that very little has changed since the financial crisis. Any ‘fixes’ have been done with a bit of sellotape and little else. We build over the cracks rather than repair them.

Gold investors were rewarded this year for their patience. This is particularly the case given there is seemingly little difference to where we find ourselves today compared to the last two years. Arguably the world is much more uncertain.

2018 is a year not to take chances and to own physical, allocated an segregated gold. The risks in the system are bigger than ever and investors would be wise to take all measures to protect their wealth.

News and Commentary

Gold hits 3-1/2-month highs before dipping on dollar recovery (Reuters.com)

Asian Stocks Extend Advance After U.S. Tech Surge (Bloomberg.com)

Global Manufacturers Strain to Keep Up With Faster Economy (Bloomberg.com)

Gold hits three-month peak after late December rally (Reuters.com)

Silver will fare better than gold in 2018: Goldman Sachs (Rediff.com)

By itself gold could solve Sudan’s economic problems, mining minister says (DabangaSudan.org)

The criminal underwold is dropping bitcoin for another cryptocurrency (Bloomberg.com)

India gold imports surge 67 percent in 2017 on restocking, retail demand – GFMS (Reuters.com)

Turkey’s gold-backed bonds: Government in quest for hidden treasures (Nikkei.com)

Nomi Prins: The Next Financial Crisis Will Be Worse Than the Last One (ZeroHedge.com)

Gold Prices (LBMA AM)

03 Jan: USD 1,314.60, GBP 968.20 & EUR 1,092.96 per ounce
02 Jan: USD 1,312.80, GBP 968.85 & EUR 1,087.52 per ounce
29 Dec: USD 1,296.50, GBP 960.84 & EUR 1,082.45 per ounce
28 Dec: USD 1,291.60, GBP 960.43 & EUR 1,082.75 per ounce
27 Dec: USD 1,285.40, GBP 958.78 & EUR 1,081.54 per ounce
22 Dec: USD 1,268.05, GBP 947.74 & EUR 1,069.85 per ounce
21 Dec: USD 1,265.85, GBP 945.97 & EUR 1,065.09 per ounce

Silver Prices (LBMA)

03 Jan: USD 17.12, GBP 12.63 & EUR 14.25 per ounce
02 Jan: USD 17.06, GBP 12.59 & EUR 14.15 per ounce
29 Dec: USD 16.87, GBP 12.48 & EUR 14.07 per ounce
28 Dec: USD 16.74, GBP 12.46 & EUR 14.02 per ounce
27 Dec: USD 16.50, GBP 12.30 & EUR 13.87 per ounce
22 Dec: USD 16.18, GBP 12.08 & EUR 13.65 per ounce
21 Dec: USD 16.15, GBP 12.08 & EUR 13.61 per ounce

Source: http://news.goldseek.com/GoldSeek/1514986020.php

Monarques #Gold $MQR.ca Announces Positive Results for the Updated Beaufor Mine Technical $MUX.ca $SII.ca

Posted by AGORACOM-JC at 9:29 AM on Thursday, December 28th, 2017

  • Reports results of the updated mineral resource and reserve estimates for its wholly-owned Beaufor mine
  • Confirms profitability of the Beaufor mine

MONTREAL, Dec. 28, 2017 – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to report the results of the updated mineral resource and reserve estimates for its wholly-owned Beaufor mine. The mineral resource and reserve estimates were prepared by InnovExplo inc., in collaboration with Beaufor mine personnel and the Corporation in accordance with NI 43-101. Unless otherwise indicated, all amounts in this press release are presented in Canadian dollars.

The Beaufor mine is located approximately 20 km northeast of Val-d’Or, in the province of Quebec. The mine has been in operation since 1930. The ore from the Beaufor mine is processed at the Camflo mill, which has a 1,600 tonne-per-day milling capacity. The mill is operated by Usine Camflo inc., also wholly-owned by Monarques.

“The outcome of the technical report is positive for Monarques, as it confirms the profitability of the Beaufor mine,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “Furthermore, the report does not consider the Camflo mill’s current custom milling activities, which could enhance the mine’s profitability. We are also continuing to assess our options for extending the mine life through targeted drilling programs on the most promising identified zones.”

Key economic parameters

Based on a gold price of $1,638/oz, reflecting a gold price of US $1,280/oz and an exchange rate of 1.28 CAD/1 USD, the study demonstrates that the Beaufor mine could generate an after-tax net present value of $4.41 million at a 5% discount rate with a total production of 30,018 ounces over the mine life. Operating costs would total $41.5 million and the total project cost would be $43.0 million. The average production cost would be $1,433/oz.

Table of economic parameters

Notes:

  • The independent and qualified person for the mineral reserve estimate, as defined by NI 43-101 is Laurent Roy, Eng. (OIQ No. 109779), of InnovExplo Inc. The effective date of the estimate is September 30, 2017.
  • The economic viability of the mineral reserve is proven.
  • Results are presented including dilution. Dilution varies from 10% to 15% for the long-hole stopes based on the position of the dyke, and is 0% for the room-and-pillar stopes as the stope width is less than 2.40m.
  • Results are presented including mining recovery rates. Mining recovery varies from 85% to 90% for long-hole stopes based on the position of the dyke and is 90% for room-and-pillar stopes.
  • The metallurgical gold recovery at the Camflo mill is 98%.
  • The mineral reserve was compiled using cut-off grades of 3.95 g/t Au (long-hole) to 4.66 g/t Au (room-and-pillar). Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • A constant specific gravity value of 2.75 t/m3 was used.
  • A minimum true thickness of 2.40 m was applied.
  • Ounce (troy) = metric tons x grade / 31.1035. Calculations used metric units (metres, tonnes, and g/t).
  • The mineral reserve was estimated using a long-term gold price of CAD 1,638.40 per ounce (metal price of USD 1,280 per ounce and an exchange rate 1.28 CAD/1 USD).
  • Tonnage and ounces estimates were rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Form 43-101F1.
  • The mineral reserve estimate is compliant with CIM standards and guidelines.
  • InnovExplo 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 reserve estimate.

Resources

Estimated mineral resource table, exclusive of mineral reserve

Notes:

  • The independent and qualified person (“QP”) for the Mineral Resource Estimate as required by NI 43‑101 is Carl Pelletier, P.Geo. (OGQ 384), employee of InnovExplo Inc. The effective date of the estimate is September 30, 2017.
  • Mineral resources which are not mineral reserves do not have demonstrated economic viability.
  • Mineral reserves have been subtracted from mineral resources.
  • Results are presented in-situ and undiluted. The reported mineral resource is considered by the QP to have reasonable prospects for underground economic extraction.
  • The estimate includes 63 mineralized zones in the Beaufor mine.
  • Mineral Resources are estimated at variable cut-off grades ranging from 3.95 g/t Au (long-hole) to 4.66 g/t Au (room-and-pillar). Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • A specific gravity value of 2.75 t/m3 was used.
  • A minimum true vein width of 2.40 m was used.
  • Capping of high-grade values was done at 68.5 g/t Au for zones 8, B, M, M1 and Q, while all other zones were capped at 34.25 g/t Au and drill hole intersections were capped at 16.5 g/t over 2.40 m. Capping was done on raw assays.
  • The estimation method was polygonal on cross section.
  • Polygons for measured resources extend 8 m above and below development and up to 10 m laterally. Polygons for indicated resources do not extend more than 20 m from drill hole intercepts, along dip and along strike. Polygons for inferred resources do not extend more than 40 m from drill hole intercepts, along dip and along strike; they are generated where the drill spacing generally ranges from 20 m to 40 m and/or in areas of isolated drill holes where mineralization is interpreted to be the extension of known mineralized zones.
  • Ounce (troy) = metric tons x grade / 31.1035. Calculations used metric units (metres, tonnes, g/t)
  • Mineral Resources are estimated using a long-term gold price of CAD 1,638.40 per ounce (metal price of USD 1,280 per ounce and an exchange rate of 1.28 CAD/1 USD).
  • Tonnage and ounce estimates were rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Form 43-101F1.
  • CIM definitions and guidelines were followed in estimating mineral resources.
  • InnovExplo 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.

A technical report on the Beaufor mine’s mineral resource and reserve estimates, as presented above, will be filed today, Thursday, December 28, 2017, on SEDAR following the publication of this press release.

Qualified person

The technical content of this press release was reviewed and approved by Mr. Marc-André Lavergne, Eng., a qualified person according to NI 43-101.

The mineral resource estimate of the Beaufor mine was prepared under the supervision of Mr. Carl Pelletier, B.Sc. Geo., an employee of InnovExplo Inc. Mr. Pelletier is an independent qualified person according to NI 43-101 and has reviewed and approved the technical content of this release, which corresponds to the mineral resource estimate of the technical report. The mineral reserve estimate of the Beaufor mine was prepared by Mr. Laurent Roy, Eng., an employee of InnovExplo Inc. Mr. Roy is an independent qualified person according to NI 43-101 and has reviewed and approved the technical content of this release, which corresponds to the mineral reserve estimate of the technical report.

 

ABOUT MONARQUES GOLD CORPORATION

 

Monarques Gold Corp (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.

Forward-Looking Statements

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

View original content with multimedia: http://www.newswire.ca/en/releases/archive/December2017/28/c8698.html

Jean-Marc Lacoste, President and Chief Executive Officer, 1-888-994-4465, jm.lacoste@monarquesgold.com, www.monarquesgold.com; Elisabeth Tremblay, Senior Geologist – Communications Specialist, 1-888-994-4465, e.tremblay@monarquesgold.com, www.monarquesgold.comCopyright CNW Group 2017

Monarques Gold $MQR.ca acquires Agnico Eagle’s $AEM.ca McKenzie Break and Swanson Properties

Posted by AGORACOM-JC at 9:33 AM on Thursday, December 21st, 2017

Monarquesgold hub large

  • Entered into an agreement with Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) to acquire the McKenzie Break and Swanson properties
  • Both host gold deposits near Monarques’ wholly-owned Beacon and Camflo mills. The terms of the agreement are described at the end of this press release
  • The Corporation gains two more gold deposits in the vicinity of the Beacon and Camflo mills 

MONTREAL, Dec. 21, 2017 / MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to announce that it has entered into an agreement with Agnico Eagle Mines Limited (“Agnico”) (NYSE:AEM, TSX:AEM) to acquire the McKenzie Break and Swanson properties (see our new property map covering close to 300 km2), which both host gold deposits near Monarques’ wholly-owned Beacon and Camflo mills. The terms of the agreement are described at the end of this press release.

“This is an excellent transaction for Monarques, as it could significantly increase the resource available for processing at our Beacon mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “The previous owners made significant investments on these properties, including building ramps to access the two deposits. Furthermore, both deposits have the benefit of lying close to surface. The next step for Monarques will be to confirm the historical estimate of the two deposits in line with NI 43-101 and explore the options for extracting those resources. We will also try to determine the potential for increasing the resources of the deposits, as most of the drilling done on the properties was at a shallow depth.”

McKenzie Break Property

The McKenzie Break property hosts a high-grade gold deposit that lies just 40 kilometres north of the Beacon mill and 25 kilometres north of Val-d’Or, Quebec. It consists of nine mineral claims covering a total area of 336.3 hectares, and is accessible year-round via Route 397 and a gravel road. The property is also about nine kilometres south of the rail link between Barraute and Senneterre. The property has surface and underground infrastructure, including a ramp providing access to the deposit, 80 metres below surface.

The McKenzie Break deposit has a historical estimate of 813,871 tonnes grading an average 6.63 g/t Au for a total of approximately 173,500 ounces of gold (source: Technical report on the McKenzie Break property, Claude P. Larouche, July 15, 2007). This historical estimate was realized by Placer Dome in 1991 and was calculated using the polygonal method and all the data collected from the green and orange zones and a cut-off grade of 1.70 g/t Au. Close to 60% of those ounces are located in the green zone, which grades an average of 8.49 g/t Au. In 1994, following the drilling of 67 additional holes in high-grade areas identified by Placer Dome’s mineral inventory, Western Quebec Mines performed a new resource estimate for two of the six lenses interpreted. Both lenses were drilled on a tight grid (30 x 30 metres) to optimize the resource estimate. This new calculation, based on the polygonal method and using a cut-off grade of 3.5 g/t Au, shows a historical estimate of 161,348 tonnes grading 10.86 g/t Au, or approximately 56,300 ounces of gold, classified as indicated, and 24,695 tonnes grading 5.23 g/t Au, or approximately 4,200 ounces of gold, classified as inferred (Mannard, 1994). These estimates are not supported by an official technical report. A Monarques qualified person has not performed sufficient work to classify these historical estimates as current mineral resources as defined by NI 43-101, and the Corporation therefore does not consider them as current mineral resources. Although the historical estimates may not be reliable, the Corporation nevertheless believes that they provide an indication of the property’s potential and are relevant for any future exploration program. In order for the historical estimates to become current resources, the Corporation must carry out new drilling on the property, and issue a new mineral resource estimate pursuant to NI 43-101.

A total of 37,750 metres of diamond drilling coming from 258 holes was carried out on the property. Drilling was concentrated on the green and orange zones. Most of the holes were shallow, with an average length of 150 metres per hole.The mineralization consists of multiple narrow veins, some of which are high-grade with a nugget effect.

In addition, metallurgical testing on samples involving gravity separation followed by direct cyanidation yielded a recovery rate of up to 99.5% (Source: Laboratoire LTM, July 2010).

Swanson Property

The Swanson property hosts a gold deposit located 65 kilometres from the Beacon mill and 12 kilometres northeast of Barraute, Quebec. It consists of one mineral lease and 129 claims covering a total area of 5,111 hectares, as well as a 500-metre ramp down to a depth of 80 metres. The property is accessible year-round via Route 367 and a gravel road. A railway track also crosses the property, as does a transmission line.

The Swanson deposit contains a historical estimate of 814,600 tonnes grading an average of 3.71 g/t Au, classified as inferred, for a total of approximately 91,200 ounces of gold. The historical estimate was realized by Lac Minerals in 1985. Previous operators concluded that there was potential to mine a smaller resource via an open pit. These estimates are not supported by a formal technical report. A Monarques qualified person has not performed sufficient work to classify these historical estimates as current mineral resources as defined by NI 43-101, and the Corporation therefore does not consider them as current mineral resources. Although the historical estimates may not be reliable, the Corporation nevertheless believes that they provide an indication of the property’s potential and are relevant for any future exploration program. In order for the historical estimates to become current resources, the Corporation must carry out new drilling on the property, and issue a new mineral resource estimate pursuant to NI 43-101.

Terms of the agreement

Monarques can acquire the McKenzie Break and Swanson properties by paying Agnico a total of CA $4,600,000, including CA $1,600,000 payable in cash and CA $3,000,000payable in common shares of the Corporation over a four-year period. Payments are as follows:

  • At signature of the agreement: CA $600,000 in common shares;
  • On the first anniversary of the agreement: CA $400,000 in cash and CA $600,000 in common shares;
  • On the second anniversary of the agreement: CA $400,000 in cash and CA $600,000in common shares;
  • On the third anniversary of the agreement: CA $400,000 in cash and CA $600,000 in common shares; and
  • On the fourth anniversary of the agreement: CA $400,000 in cash and CA $600,000 in common shares.

 

In addition, Agnico is entitled to a 1.5% net smelter return royalty on each property. Monarques can reduce each of these royalties to 1.0% by paying Agnico CA $750,000.

Concurrent with this transaction, the Corporation bought back a 1.5% net smelter return royalty on the McKenzie Break property in exchange for US $50,000 in cash and 600,000 common shares of Monarques.

These transactions are subject to regulatory approval.

The technical and scientific content of this press release has been reviewed and approved by Kenneth Williamson, M.Sc., P.Geo, the Corporation’s qualified person under National Instrument 43‑101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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.

Forward-Looking Statements 

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

Source: PR Newswire (December 21, 2017 – 7:05 AM EST)

News by QuoteMedia
www.quotemedia.com

Monarques Gold $MQR.ca announces a custom milling contract with Nottaway Resources for at least 180,000 tonnes of ore $GDX.ca $MCE.ca

Posted by AGORACOM-JC at 9:22 AM on Thursday, December 7th, 2017

Monarquesgold hub large

  • Announced that it has entered into a custom milling contract with Nottaway Resources Inc to process ore from the Vezza mine at the Camflo mill
  • Contract covers at least 15,000 tonnes of ore per month, for at least 180,000 tonnes in 2018

The Camflo mill will process the ore from the Vezza mine

MONTREAL, Dec. 7, 2017  – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7) is pleased to announce that it has entered into a custom milling contract with Nottaway Resources Inc. (“Nottaway”) to process ore from the Vezza mine at the Camflo mill. The contract covers at least 15,000 tonnes of ore per month, for at least 180,000 tonnes in 2018.

“We are delighted to have Nottaway Resources as a new client for 2018,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “This contract will provide us with stable revenue flow from the Camflo mill in 2018 and fits perfectly with our goal of increasing the profitability of our operations.”

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, Eng., the Corporation’s qualified person under National Instrument 43‑101.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold Corp (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 more than 240 km² of gold properties (see map), including the Beaufor Mine, the Croinor Gold (see video) and Wasamac 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.

Forward-Looking Statements

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