Monarch Mining (TSX: GBAR; OTC: GVARF) has closed a previously announced $13.5-million loan agreement with Investissement Quebec. The proceeds will be applied to the restart of the Beaufor gold mine, 20 km northeast of Val d’Or, Que., and the 705-t/d Beacon mill. Reopening is planned for June 2022. Both mine and mill are fully permitted.
The loan has a three-year term and bears an annual interest rate of 6% until the mine and mill are operational, 5% during the first year of production and 4% in subsequent years, subject to certain terms and conditions.
The historic Beaufor mine produced over 1.1 million oz. of gold before work was suspended in June 2019. Monarch embarked on a 42,500-metre surface and underground drill program that led to a new resource estimate at the end of last year.
The Beaufor mine has measured and indicated resources of 1.3 million tonnes grading 5.3 g/t gold, containing 219,200 oz. The inferred portion is 818,900 tonnes at 4.7 g/t gold, containing 122,500 oz.
The mineralization consists of shear-hosted, gold-bearing veins contained in a strongly altered granodiorite. The veins have been traced in panels of more than 300 metres along strike and 350 metres tall. They vary in thickness from 5 cm to 5 metres, but generally the quartz veining system is 30 cm to 1.2 metres.
Monarch has three other advanced-stage gold assets: Croinor, McKenzie Break and Swanson. All are past producers and located close to the Beacon mill. The company owns 100% of all its projects.
Technical information about all four projects can be found at www.MonarchMining.com.