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 Mining (TSX: GBAR) has intersected near-surface bonanza grades 200 metres southwest of the current pit shell at its McKenzie Break gold project 35 km north of Val d’Or, Quebec. The best assay at the project was 73.5 g/t gold over 1.4 metres, followed by a deeper zone grading 1.38 g/t gold over 5 metres in hole MK-21-296.
Again 200 metres southwest of the pit shell, hole MK-21-306 intersected widespread low-grade mineralization, including 0.92 g/t gold over 17 metres and a deeper zone grading 0.98 g/t over 11.6 metres. Hole-21-305 returned 2.39 g/t gold over 2 metres, followed by a deeper zone of 4.5 g/t gold over 0.7 metre.
Good grades were also drilled 100 metres northeast of the current resources in hole MK-21-290, which returned 4 g/t gold over 1 metre, followed by a deeper zone grading 8 g/t over 1 metre. Fifty metres to the west, hole MK-21-290 returned 4.5 g/t gold over 1 metre and 5.5 g/t gold over 1 metre.
Monarch also did infill drilling on 50-metre centres east of the deposit. Hole MK 21-288 returned 12.8 g/t gold over 1.7 metres; hole MK-21-295 returned 12 g/t gold over 0.8 metre and 4.29 g/t gold over 2.6 metres; hole MK-21-297 returned 10.9 g/t gold over 0.6 metre; hole MK-21-299 returned 12.3 g/t gold over 0.8 metre; and hole MK-21-300 returned 10.2 g/t gold over 1.1 metres.
The McKenzie Break project is located 25 km north of the company’s wholly owned 750-t/d Beacon gold mill. The property has an indicated resource of 1.8 million tonnes grading 1.8 g/t gold for it pit-constrained portion and 5.03 g/t for the underground portion, containing about 146,000 oz of gold. The inferred resource is 3.3 million tonnes grading 1.44 g/t gold for the open pit portion and 4.21 g/t for the underground portion, containing a total of 250,000 oz. of gold.
Monarch will complete this year’s drilling on 50-metre centres and begin a new program next year to expand the resources the current pit shell resource and recent intercepts 1 km to the south.
(This article first appeared in the Canadian Mining Journal)
