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Quebec’s newest gold producer
With its gold resources trading at less than one third
of the valuation of its peers—For now
With its gold resources trading at less than one third of the valuation of its peers—For now
GREG BECKETT CIM, FCSI >
PUBLISHED JULY 31, 2018
Monarques Gold Corp. (TSX-V:
MQR) is Canada’s newest
gold producer and one of the very few junior gold
mining companies in the world who are in
production and pouring gold. They also generate revenue from their two mills by contract milling ore for
their neighbors.
GREG BECKETT CIM, FCSI >
PUBLISHED JULY 31, 2018
Monarques Gold Corp. (TSX-V:
MQR) is Canada’s newest gold producer and one of the very few junior gold
mining companies in the world who are in
production and pouring gold. They also generate revenue from their two mills by contract milling ore for
their neighbors.
Some of the reasons I selected Monarques Gold for the Richmond Club Index are:
- They are undervalued relative to their peers. The shares are trading at a value equal to $12 per
ounce of gold in the ground compared to comparable companies that are trading at upwards of
$60 per ounce, - The company has $18 million of cash,
- They are in a mining friendly jurisdiction, Abitibi region of Quebec, with access to roads,
employees and electricity, - They are in production and generate additional revenue by milling ore for their neighbors such as
Osisko gold and Eldorado gold, - “Smart Money” has invested in them, names such as: Alamos Gold, Rob McEwen-founder of
Goldcorp, Greg Chamandy-Chairman of Richmont Mines, Agnico Eagle Mines and several Quebec
funds are significant shareholders, - Jean-Marc Lacoste the founder and CEO is a major shareholder.
Monarques Gold has 3 million ounces of measured and indicated gold. They also have four advanced projects over 300 square kilometers of properties on the Cadillac Fault in Quebec which produced 125 million ounces of gold over the last century.https://www.youtube.com/watch?v=oiS0iHChrNEGreg Beckett’s interview with the President & CEO of Monarques Gold, Jean-Marc Lacoste
The Camflow Mill has a history of running at a 98.5% recovery rate, has a replacement cost of $40 million and is at full capacity. Twenty five percent of its capacity is used to process the ore from Monarques Beaufor Mine and seventy five percent is used to process ore from neighbors such as Osisko gold and Eldorado gold. The Beacon Mill is expected to be in production by the fourth quarter of 2018.
Current Beaufor Mine production of 25,000 ounces of gold per year. More than 1,160,000 ounces of gold produced since 1933 at a historical grade of 7.5 g/t Au.
“Location, location, location” The Cadillac …region in Quebec is one of the most prolific areas in the world for gold mining and has unparalleled infrastructure and government support.
One of the Jean-Marc’s objectives is to complete a feasibility Study by December 2018 on the Wasamac property which is expected to convert the 2.6 million ounce Measured & Indicated Resource in to the Reserve category which would help Monarques to start trading at the level of its peers of $60/oz rather than the current $12/ounce.
Advanced Projects
It’s hard to talk about Monarques Gold as an entity without touching on some of the company’s advanced projects. Monarques holds a 100-percent stake in all four of its Advanced Projects, all of which are located in Quebec. These projects are Croinor Gold, Wasamac, McKenzie Break and Swanson.
Croinor Gold is an advanced, prefeasibility stage project with a measured and indicated resource of 236,000 ounces of gold. This deposit was discovered in 1940 and is located 55 kilometers east of Val-d’Or. It consists of one mining lease and two blocks of claims totaling 335 claims over an area of more than 150 kilometers.
Wasamac is another advanced project with a Measured & Indicated Resources of 2,587,900 ounces of gold.
It consists of three mining concessions and 12 mining claims over more than 7.5 kilometers. The property can be found in Beauchastel township west of Rouyn Noranda in the Abitibi gold mining camp in Quebec.
McKenzie Break is located right in Monarques Gold’s own backyard. The property is just 20 kilometers north of the Beacon Mill and 35 kilometers north of Val-d’Or. The land has nine mineral claims over three kilometers and is accessible year-round. Indicated-resource estimates vary between 48,133 – 53,448 ounces of gold depending on whether the mining is done with an open pit or underground mining operation.Major shareholders/partners
Swanson has a gold deposit with a Measured & Indicated Resources of 111,100 ounces of gold. It is located about 65 kilometers away from the Beacon Mill and 12 kilometers away from Barraute. It consists of one mineral lease and almost 130 claims. The property is accessible year-round, just like McKenzie Break.
These advanced projects represent the future of Monarques Gold and a great many mining opportunities to come.
Monarques Gold’s, President and Chief Executive, Jean-Marc Lacoste also has “skin in the game” with his ownership of 4 million shares of Monarques worth a little over one million dollars at the current price.
“I’m surrounded by some of the greatest geologists and mining engineers. Together we’re working to bring value to our shareholders” Jean-Marc Lacoste, President & CEO, Monarques Gold Corp.
Greg Beckett is a Director, Retirement, Estate & Trust Strategies at Beckett Wealth Management Inc. greg@beckettwealth.com