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Monarch Gold releases results for last quarter

Published by , Assistant Editor
Global Mining Review,

On Friday 15 February, Monarch Gold Corporation (Monarch) reported its results for the second quarter ended 31 December 2018.


  • Second quarter revenues of CAN$11.4 million from the sale of 5169 oz of gold combined with revenue from custom milling, which were up 2% from the first quarter of the year and 71% from last year.
  • Net earnings of CAN$2.2 million or CAN$0.009 per share, diluted, compared to CAN$0.7 million or CAN$0.003 per share, diluted, last year.
  • Strong financial position, with CAN$9.3 million in cash.
  • Production activities at the Beaufor mine are extended to April 2019, to be carried out in accessible stopes using a smaller workforce.
  • Final results for the 2018 drilling programme on Croinor Gold are received and show a larger deposit that remains open in all directions.
  • The corporation successfully completed a positive feasibility study on its Wasamac gold deposit (see feasibility study), which can be summarised as follows:
  1. Forecast average production of 142 000 oz of gold per year for 11 years.
  2. Pre-tax NPV of CAN$522 million.
  3. Pre-tax IRR of 23.6%.
  4. Cash production cost of US$550/oz.
  • Ongoing discussions with several parties to explore financing, partnership and other opportunities to advance the Wasamac project.

"These better-than-expected results are the result of good operational planning and the stellar work of our employees at the Beaufor Mine and Camflo Mill," said Jean-Marc Lacoste, President and CEO of Monarch.

"We also expect strong results for the current quarter provided gold prices hold at current levels."

"Needless to say, the future of the Wasamac deposit is currently our highest priority, as the results of the feasibility study show that Wasamac has the potential to become a major low-cost gold mine. Discussions are ongoing with several parties for financing or a joint venture. In addition, Mathieu Séguin, who has just joined Monarch, will apply his expertise in corporate financing and mergers and acquisitions to helping us structure the best possible transaction to realise Wasamac's full value for our shareholders," added Lacoste.

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.Eng., the corporation's qualified person under National Instrument 43-101.

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