Monarques Gold Corp. has entered into an agreement with Agnico Eagle Mines Ltd to acquire the McKenzie Break and Swanson properties, which both host gold deposits near Monarques’ wholly-owned Beacon and Camflo mills.
“This is an excellent transaction for Monarques, as it could significantly increase the resource available for processing at our Beacon mill,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “The previous owners made significant investments on these properties, including building ramps to access the two deposits. Furthermore, both deposits have the benefit of lying close to surface. The next step for Monarques will be to confirm the historical estimate of the two deposits in line with NI 43-101 and explore the options for extracting those resources. We will also try to determine the potential for increasing the resources of the deposits, as most of the drilling done on the properties was at a shallow depth.”
Monarques can acquire the McKenzie Break and Swanson properties by paying Agnico a total of CAN$4.6 million including CAN$1.6 million payable in cash and CAN$3 million payable in common shares of the corporation over a four-year period.
The McKenzie Break property hosts a high-grade gold deposit that lies just 40 km north of the Beacon mill and 25 km north of Val-d'Or, Quebec. It consists of nine mineral claims covering a total area of ??336.3 ha, and is accessible year-round via Route 397 and a gravel road.
The Swanson property hosts a gold deposit located 65 km from the Beacon mill and 12 km northeast of Barraute, Quebec. It consists of one mineral lease and 129 claims covering a total area of ??5111 ha, as well as a 500-metre ramp down to a depth of 80 metres. The property is accessible year-round via Route 367 and a gravel road. A railway track also crosses the property, as does a transmission line.