Monarch Gold Files a Project Notice for its Wasamac Gold Project with Quebec's Ministry of the Environment and the Fight Against Climate Change

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Nov 20, 2019, 10:30 ET

The Corporation is launching the Environmental Impact Assessment and Review (EIAR) process with the goal of putting its Wasamac gold deposit into production.
In December 2018, Monarch completed a positive feasibility study on Wasamac (based on a gold price of US$1,300 per ounce) with the following results:

Estimated average annual production of 142,000 ounces of gold over 11 years
Pre-tax net present value (NPV) of $522 million
Pre-tax internal rate of return (IRR) of 23.6%
Cash production cost of US$550 per ounce.

The proposed project will be based on the Mining 4.0 concept that combines new technologies and respect for the environment, in particular through the Rail-Veyor® electrically powered, remote-controlled underground haulage system.
Wasamac is a large-scale gold project that could potentially create several hundred high-quality jobs in the Abitibi region, Quebec.
Wasamac was selected as a pilot project by the Government of Quebec to be supported throughout the permitting process by the interdepartmental table announced by Minister Julien on November 19, 2019. The objective is to set up a mining project support service, harmonize processes between the various ministries to avoid duplication and thus accelerate the processing of authorizations required to start a mining project that respects best environmental practices.

MONTREAL, Nov. 20, 2019 /PRNewswire/ - MONARCH GOLD CORPORATION ("Monarch" or the "Corporation") (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to announce that it has filed a project notice today with Quebec's Ministry of the Environment and the Fight Against Climate Change (MELCC) for its wholly-owned Wasamac gold project, located 15 km west of Rouyn-Noranda in the Abitibi-Témiscamingue region of Quebec. The project notice is the first step in the mining permit application process, which generally takes 18 to 24 months.

"Today marks a significant milestone in Monarch's history with the launch of the permitting process for production at the Wasamac property," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. "Several factors led us to this decision, including the positive feasibility study conducted in December 2018, the strong gold market and the favourable financing and partnership climate for this type of project. In addition, Wasamac is expected to create more than 400 jobs during the construction stage and some 300 jobs once the mine goes into production. Monarch also intends to make Wasamac a Mining 4.0 project, combining new technologies and respect for the environment. The proposed project will feature new production technologies such as the Rail-Veyor® electrically powered, remote-controlled underground haulage system and will include an almost entirely electric fleet of production and development equipment. Our projections indicate that the use of electricity and automation will allow us to produce at a lower cost and minimize our environmental footprint."

Wasamac: A project in step with local communities

A Quebec-based company with a seasoned management team and a board of directors experienced in the development of large-scale mining projects such as Wasamac, Monarch is proactive when it comes to relations with host communities. "We listen to their requests and concerns and act accordingly," said Mr. Lacoste. "The transparency of the process is a priority for us."

Early in the EIAR process, prior to the filing of the project notice, the Corporation initiated consultations with certain stakeholders, including local residents living near the Wasamac project. These preliminary meetings allowed the main concerns associated with the project to be identified. The stakeholders targeted are listed in the project notice, and other stakeholders will be invited to similar information meetings and consultations as the process unfolds.

"In short, we are very proud to be launching this process to bring a major new Quebec gold mine into production," added Mr. Lacoste. "We are convinced that Wasamac could generate positive benefits for the various groups, communities and stakeholders that will be involved in this promising project managed here, by local people, for local people."

Summary of the project notice and preliminary timeline

Monarch prepared the project notice to present the preliminary background and important descriptive information for the Wasamac gold project. Broadly speaking, the Wasamac project consists of:

Operation of an underground mine producing 6,000 tonnes per day on average, with an expected mine life of 11 years;
Construction of underground ore haulage infrastructure;
Construction of a mineral processing plant;
Preparation of waste rock, tailings and overburden storage areas; and
Establishment of related infrastructure (power supply, telecommunications, heating, ventilation, water treatment, etc.).

The December 2018 feasibility study by BBA (see feasibility study) indicates that the Wasamac deposit hosts a measured and indicated mineral resource of 29.86 million tonnes at an average grade of 2.70 g/t Au, for a total of 2.6 million ounces of gold, and proven and probable mineral reserves of 21.46 million tonnes at an average grade of 2.56 g/t Au, for a total of 1.8 million ounces of gold, with the deposit remaining open along strike and at depth.

The project notice will be available online on the environmental assessment register within 15 days of receipt of the MELCC guidelines specifying the requirements for the environmental impact assessment. The public will also be able to consult the register to find project-related documents as the evaluation process unfolds.

Based on the project notice filed by the Corporation and the guidelines from the ministry, individuals, groups and municipalities will have a 30-day public consultation period during which they may submit their comments to the Minister on the issues that should be addressed in the impact assessment. The Minister will forward the relevant comments on issues that merit consideration in the project's impact assessment to the Corporation and publish them in the environmental assessment register.

Monarch will issue press releases with updates on the permit application process at each stage in the process.

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

ABOUT MONARCH GOLD CORPORATION

Monarch Gold Corporation (TSX: MQR) is an emerging gold mining company focused on becoming a 100,000 to 200,000 ounce per year gold producer through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns nearly 300 km² of gold properties (see map), including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor, Croinor Gold (see video), Fayolle, McKenzie Break and Swanson advanced projects and the Camflo and Beacon mills, as well as promising exploration projects. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.

Forward-Looking Statements

The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch's actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

www.monarquesgold.com

SOURCE Monarch Gold Corporation