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 (TSXV: GBAR) plans to reopen its Beaufor mine and Beacon mill, 20 km east of Val-d’Or, Quebec, by next June.
Currently on care and maintenance, Beaufor has produced over 1.1 million oz. of gold at an average grade of 7.5 g/t gold since first production in the 1930s.
Before the suspension of operations in June 2019, the operation employed 150 people at the mine and 30 at the 750 t/d mill.
Beaufor, which Monarch acquired in 2017, has measured and indicated resources of 431,100 tonnes grading 6.68 g/t gold for 92,700 oz. But an updated resource, based on an ongoing 42,500-metre drill program, is slated to be released in the third quarter.
In a release, Monarch’s president and CEO Jean-Marc Lacoste, said that the company’s technical team has compiled historical data and drill results to date and have “given us the green light to proceed with the restart process.” The next steps, he added, will be to continue exploration, definition and development work, recruit personnel and purchase any required equipment.
“Our new production strategy will focus on operating the Beaufor mine through two accesses, the production ramp and the shaft, whereas historical production was always from the shaft,” Lacoste said.
“Ever since the mine was temporarily closed in 2019, our goal has been to restart the mine with a view to creating long-term value and good-quality jobs in the Abitibi region. We still believe that the Beaufor mine has excellent gold potential in the vicinity of the existing mineralized envelope and at depth, and we are confident of realizing its full potential.”
Monarch has so far received and reported results from 14,465 metres of drilling, representing about 34% of the overall drill program. Recent highlights include: 0.2 metre of 783 g/t gold and 0.5 metre of 293 g/t gold; 9.8 metres of 35.87 g/t gold and 0.5 metre of 187 g/t gold.
Monarch Mining is a spinout of assets from Monarch Gold, which was acquired in a C$152 million cash and shares deal late last year for the Wasamac property in Quebec.
Monarch Mining’s other assets include the McKenzie Break project and the Croinor past-producing mine, both in the Val-d’Or area.
(This article first appeared in the Canadian Mining Journal)
