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MONARCH MINING CORPORATION, MACKENZIE BREAK

High-grade gold deposit near Monarch’s mills

Monarch acquired a 100% interest in the McKenzie Break property from Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM). The property hosts a high-grade gold deposit that lies just 20 kilometres north of the Beacon mill and 35 kilometres north of Val-d'Or, Quebec. It consists of 169 mineral claims covering a total area of 70.5 km², and is accessible year-round via Route 397 and a gravel road. The property is also about nine kilometres south of the rail link between Barraute and Senneterre.

The McKenzie Break property is located in an area with existing infrastructure and several mills. It has surface and underground infrastructure, including a ramp down to a depth of 80 metres below surface.

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NI 43-101 Technical Report PDF

3D compilation of the drilling data,

June 2018

Source: Daniel Gaudreault, Eng., Géologica Groupe-Conseil inc.

Resources
Estimated mineral resource table

The resource estimate is based on a database of 333 drill holes, 57,789 metres of drilling and 34,026 assays. A total of 30 mineralized envelopes were modelled and validated. Capping was applied to raw assays before compositing, with grades capped at 60 g/t Au for the mineralized zones. The independent and qualified persons for the mineral resource estimate, as defined by NI 43101, are Merouane Rachidi, P.Geo., and Claude Duplessis, Eng., of GoldMinds Geoservices.

Notes:

  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to a Measured and Indicated Mineral Resource and must not be converted to a Mineral Reserve. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, market or other relevant issues. The quantity and grade of reported inferred resources are uncertain in nature and there has not been sufficient work to define these inferred resources as indicated or measured resources.
  2. The database used for this mineral estimate includes drill results obtained from historical records and up to the recent 2018-2020 drill program.
  3. Mineral Resources are reported at a cut-off grade of 0.50 g/t Au for the pit-constrained and Underground mineral resources are reported at a cut-off grade of 2.38 g/t Au within reasonably mineable volumes.
  4. These cut-offs were calculated at a gold price of C$1,980 ounce.
  5. The pit-constrained resources were based on the following parameters: mining cost $3.5/t, processing, transportation + G&A costs $27/t, Au recovery 95%, pit slopes 15 degrees for overburden and 50 degrees for rock.
  6. The underground reasonably mineable volumes were based on the following parameters: mining cost $98/t, processing, transportation + G&A costs $27/t, Au recovery 95%, dilution of 15% at 0 g/t Au with a minimum stope dimension of 10m x 10m x 5m.
  7. The geological interpretation of the deposits was based on lithologies and the typical mineralized interval mainly composed by diorite hosted shear zones.
  8. The mineral resource presented here was estimated with a block size of 5m X 5m X 5m for the pit-constrained and for underground.
  9. The blocks were interpolated from equal length composites calculated from the mineralized intervals. Prior to compositing, high-grade gold assays were capped to 60 g/t Au applied on 0.6-metre composites.
  10. The mineral estimation was completed using the inverse distance squared methodology utilizing two passes. For each pass, search ellipsoids followed the geological interpretation trends were used.
  11. Tonnage estimates are based on rock specific gravity of 2.77 tonnes per cubic metre for all the zones. Results are presented undiluted and in situ.
  12. Estimates use metric units (metres, tonnes and g/t). Metal contents are presented in troy ounces (metric tonne x grade / 31.10348).
  13. This mineral resource estimate is dated February 1, 2021, and the effective date for the drillhole database used to produce this updated mineral resource estimate is September 28, 2020.
  14. No economic evaluation of the resources has been produced.