Just one month after acquiring the Fayolle gold project, located 35 km northeast of Rouyn-Noranda, Quebec, Monarch Gold has released a new resource estimate for the deposit.
The project hosts a pit-constrained indicated resource of 70,630 oz. gold in 405,600 tonnes grading 5.42 g/t gold (at a cutoff grade of 0.9 g/t gold). Underground indicated resources add a total of 40,380 oz. in 300,800 tonnes grading 4.17 g/t gold (at a cutoff grade of 2.2 g/t gold).
The resource was calculated using a C$1,300 per oz. gold price and a US exchange rate of C$1.33.
Monarch acquired Fayolle in August from Hecla Mining and Typhoon Exploration. In return, it issued 12 million shares to Hecla and 3.4 million to Typhoon; Monarch also paid C$500,000 to Typhoon with another C$650,000 to be paid in two installments over 12 months.
A 2013 resource completed under Typhoon Exploration put indicated resources at Fayolle at 548,000 tonnes grading 5.75 g/t gold. Monarch considered the resource historical at the time of acquisition as it had not completed enough work on the project to classify the resource as current.
Monarch Gold has a large portfolio of advanced gold projects in the Abitibi region of Quebec, as well as the Camflo and Beacon mills.
“With this estimate, we now have a combined measured and indicated resource of 3.3 million oz. of gold and an inferred resource of 1.1 million oz. on our six advanced projects, including the Wasamac project with its feasibility study and the Croinor Gold project with its prefeasibility study,” said CEO Jean-Marc Lacoste. “At this point in time, there are no other projects in the Abitibi region that are closer to a production decision.”
(This article first appeared in the Canadian Mining Journal)