Monarch Mining (TSX: GBAR; US-OTC: GBARF) has discovered shallow gold mineralization 1 km south of its McKenzie Break deposit in Quebec, about 35 km north of Val-d'Or.
The discovery has the potential to be a 'game changer' according to president and CEO Jean-Marc Lacoste.
"It has similar geological characteristics and follows a clear high MAG trendline over the 1 km stretch from the [main] deposit," Lacoste said in a news release. "The next steps will include testing the discovery at depth and along the proposed trendline to confirm its continuity."
Among the strongest drill results is hole MK-21-281, which intersected 3.93 grams gold per tonne over 2.83 metres, from 52.58 metres downhole, including an intercept grading 6.46 grams gold per tonne over 1.42 metres. A second intercept in the hole also returned 3.93 grams gold per tonne over 5.45 metres from 138 metres down, and included 1.3 metres grading 11.58 grams gold per tonne from 138.43 metres.
Another hole, MK-21-287, intersected 1.52 grams gold per tonne over 8.8 metres, from 112.2 metres down. This included 3.61 grams gold per tonne over 1.8 metres from 112.2 metres downhole. Holes MK-21-287 and MK-21-281 are located 125 metres apart.
The McKenzie Break deposit is situated on the company's 7,050 hectare property and is just 20 km north of Monarch Mining's 750-tonne-per-day Beacon mill.
The deposit has open pit and underground indicated resources of 1.83 million tonnes grading 2.48 grams gold per tonne for 145,982 oz. of contained gold and inferred resources of 3.33 million tonnes grading 2.34 grams gold per tonne for 250,593 ounces.
The company has two drills turning at McKenzie Break and has completed about 15,765 metres of its 20,000-metre drill program. Drilling is expected to continue into next year.
Monarch Mining was spun out of Monarch Gold in November 2020, after Monarch Gold was acquired by Yamana Gold (TSX: YRI; NYSE: AUY; LSE: AUY) for $152 million that same month. As part of the deal, Monarch Mining retained McKenzie Break and several other assets.
Monarch Mining's wholly-owned assets are all located in the Abitibi camp and within close proximity to its Beacon mill, 15 km east of Val-d'Or. The mill has been on care and maintenance since July 2016.
The company's past-producing and fully permitted Beaufor underground mine is located less than 10 km from the Beacon mill, and has also been idled since June 2019. Earlier this year the Quebec government granted Monarch a $13.5 million senior secured loan to help the company restart both Beaufor and Beacon, which it plans to do by June 2022.
Monarch's other assets in Quebec are the Swanson property, located about 65 km north of Val-d'Or, and the Croiner gold property, located about 55 km east of the city.
At presstime, Monarch Mining was trading at 80 ? per share, in a 52-week range of 59 ? to $1.31. The company has 78 million common shares outstanding for a market cap of $62 million.