Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Monarch Gold (TSX: MQR) has filed a project notice with the Quebec government for its Wasamac project, marking the first step in the mining permit application process, which generally takes 18 to 24 months.
Located about 15 km west of Rouyn-Noranda in the Abitibi-Témiscamingue region, Wasamac is forecast to produce an average of 142,000 oz/year over an 11-year mine life at an all-in sustaining cost of C$826/oz.
Jean-Marc Lacoste, President and CEO of Monarch, says the launch of the Wasamac permitting process is a “significant milestone” in the company’s history. “Several factors led us to this decision, including the positive feasibility study conducted in December 2018, the strong gold market and the favourable financing and partnership climate for this type of project.”
Wasamac is expected to create more than 400 jobs during the construction stage and about 300 jobs once the mine goes into production. The company also intends to make Wasamac a Mining 4.0 project, combining new technologies and respect for the environment.
“The proposed project will feature new production technologies such as the Rail-Veyor electrically powered, remote-controlled underground haulage system and will include an almost entirely electric fleet of production and development equipment,” Lacoste added.
“Our projections indicate that the use of electricity and automation will allow us to produce at a lower cost and minimise our environmental footprint.”
The Wasamac project consists of an underground mine producing 6,000 tonnes per day on average, construction of underground ore haulage infrastructure, construction of a mineral processing plant, preparation of waste rock, tailings and overburden storage areas, and the establishment of related infrastructure.
The December 2018 feasibility study indicates that the Wasamac deposit hosts a measured and indicated mineral resource of 29.86 million tonnes at an average grade of 2.70 g/t gold for a total of 2.6 million ounces of gold.
