CDPQ invests $5 million in Monarch Gold to support the potential re-opening of the Beaufor mine

MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX: MQR) (OTCMKTS: MRQRF) (FRANKFURT: MR7) announces that it has signed an agreement with Caisse de dépôt et placement du Québec (“CDPQ”) to sell a 3% net smelter return royalty on gold production at the Beaufor mine (the “NSR”) for $5 million. 

The Corporation and CDPQ have also agreed to retain the services of GoldSpot Discoveries Corp. (TSXV: SPOT), a technology company that applies expert geoscience and advanced artificial intelligence algorithms to increase the efficiency and success rate of mineral exploration. The objective is to optimize the drilling program on the Beaufor property using advanced analytical technology.

42,500-metre drilling program

The planned exploration program will be one of the largest exploration programs ever undertaken on the Beaufor property, consisting of approximately 270 drill holes for a total of 42,500 metres (see Beaufor Presentation). Exploration drilling will be done in several phases, including:

• Underground work in proximity to the exploration targets of the mine
  (high-grade intervals and isolated resource blocks)
• Near-surface and mine targets
• Targets below the current mine workings
• Regional exploration targets

Underground work in proximity to the exploration targets of the mine
This initial phase, representing the bulk of the exploration drilling, will focus on the underground near-mine targets defined by the recent 3D modelling (see Figure 1). These holes will test areas near historical high-grade drill intersections  and areas associated with known vein structures that remain open. These targets are all defined by high-grade intersections located near the existing underground infrastructure, thus requiring minimal development for mining purposes. They are also all located above the mine’s lowest development level (above 900 metres). These targets can easily be tested from the available underground workings, with the majority of the holes less than 200 metres long.

The second type of target related to underground near-mine targets will be the follow-up of isolated resource blocks that still have significant room for expansion. These resource blocks are typically defined by a single drill hole along a known mineralized structure, but continuity has not been demonstrated due to a lack of nearby drilling. 

Near-surface and mine targets
A program of near-mine surface drilling will follow to test both the high-grade and isolated resource block targets that cannot be properly tested from the existing underground infrastructure (see Figure 2). These targets are located near the mine and no more than 300 metres below surface. 

Targets below the current mine workings
A program of exploration drilling of the area below the current mine workings (below 900 metres) will be undertaken to continue testing the extension of the known mineralization at depth, where mining left off prior to the temporary shutdown (see Figure 3). Recent wide-spaced drilling below the bottom of the mine has confirmed the extension of the mineralization. The planned drilling will target specific areas defined by previous high-grade intersections in an area extending down to 230 metres below the current workings.  

Regional exploration targets
The final phase of the exploration drilling will consist of surface drill holes to test regional targets defined by historical intersections and potential structures beyond the current limits of the underground infrastructure (see Figure 4).

Quality control and qualified person

Sampling normally consists of sawing the core into two equal halves along its main axis and shipping one of the halves to Val-d'Or for assaying at the ALS Geochemistry laboratory, which is fully accredited under ISO 17025. The samples are crushed, pulverized and assayed by fire assay with atomic absorption finish. Results exceeding 10.0 g/t are re-assayed using the gravity method. Certified standards and blanks are inserted into the sampling stream for quality control purposes. The technical and scientific content of this press release has been reviewed and approved by Louis Martin, P. Geo., the Corporation’s Consultant Geologist and qualified person under National Instrument 43-101.

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.