Monarques Gold Corporation reported its production results and other highlights for the third quarter ended March 31, 2018.
Monarques Gold Corporation (TSXV:MQR) reported its production results and other highlights for the third quarter ended March 31, 2018.
Highlights are as follows:
- Monarques produced 4,932 ounces of gold in its third quarter, a decrease of 9 percent from the 5,444 ounces produced the previous quarter, mainly due to the breakdown of ore haulage equipment at the Beaufor Mine and a planned shutdown for maintenance at the Camflo mill. As soon as the equipment was repaired, production resumed at the same pace as in the previous quarter.
- The Corporation recorded revenues of C$9.8 million in the third quarter, from the sale of 4,823 ounces of gold at an average price of C$1,624 per ounce (US $1,284), combined with revenue from custom milling, which was up 17 percent for the quarter.
- Monarques reported the final results of its 2017 drilling program at the Beaufor Mine. The results were from 52 holes totalling 7,157 metres of drilling, including 5 exploration holes (2,651 metres) and 47 definition holes (4,506 metres). The holes were drilled on several areas of the mine, including Zone Q, Zone QH2, Zone 32, and projects 350H, 1700 and Granodiorite East.
- On February 8, 2018, Monarques announced the results of the updated prefeasibility study for its wholly-owned Croinor Gold property, which showed improved project profitability and an increase in proven and probable reserves.
- On February 13, 2018, the Corporation announced that it would prepare gold resource estimates for its McKenzie Break and Swanson properties in accordance with NI 43-101, and that it had retained the services of Géologica of Val-d’Or for the McKenzie Break property and InnovExplo Inc. for the Swanson property.
- On February 22, 2018, the Corporation announced that it planned to drill a total of 50,000 metres in 2018 at the Beaufor Mine and the Croinor Gold property.
- On March 12, 2018, Monarques closed a non-brokered private placement of units with the Government of Quebecthrough the Capital Mines Hydrocarbures fund managed by Ressources Québec, pursuant to which the Corporation issued 12,820,513 units at C$0.39 per unit for total gross proceeds of C$5 million.
- On April 5, 2018, Monarques announced that it was investigating a potential game-changer for its Wasamac gold project. It has retained BBA to conduct a study for the transportation of gold-bearing material from the Wasamac deposit to an existing processing plant with an authorized tailings management facility in the region for custom milling.
- At March 31, 2018, the Corporation had more than C$18 million in cash.
Jean-Marc Lacoste, president and CEO, commented:
Our production results for the quarter were lower than we expected.
However, now that we have resolved the issues with the ore haulage equipment, the Beaufor Mine is back to producing at the same rate as in the previous quarter. We also foresee continued growth in our custom milling operations, which bodes well for the coming quarters. Our goal for the next quarters is still to increase production at the Camflo mill based on the Beaufor Mine ore and custom milling activities while cutting production costs. At the same time, we have started a number of projects since the beginning of the third quarter that should enable us to increase our gold resource and our production capacity.