Name of the Project
Wasamac gold project.

Location
The project is located 15 km west of Rouyn-Noranda, in Abitibi, Quebec, Canada.

Client
Monarque Gold.

Project Description
Monarques has reported positive feasibility results, which shows that the Wasamac project is an economically viable and low-cost producing mine. The project has total proven and probable reserves of 21.46-million tonnes grading 2.56 g/t.

The 2018 feasibility study provides a base case assessment for developing the Wasamac deposit as an underground mine with a plant throughput of 6 000 t/d. The project will integrate Rail-Veyor technologies and a paste backfill system with a top-down mining approach, feeding a process plant – located about 2 km from the mine site – with a neutral dry-stacked tailings disposal facility about 5 km away to minimise the project footprint locally. The carbon-in-pulp process plant is designed to have a capacity of 6 900 t/d.

Production of 1.56-million ounces of gold is estimated over the 11-year life-of-mine (LoM) from proven and probable reserves of 21.46-million tonnes grading 2.56 g/t gold.

Potential Job Creation
The preliminary on-site workforce requirement for construction, including infrastructure, a process plant and the development of the underground mine, is expected to average 250 construction personnel, peaking at an estimated 420 (individuals) by the third quarter of 2021. It is expected that about 300 employees – staff and labour, peaking at 319 in year 2024 – will be required for the operations over the LoM.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $522-million and an internal rate of return of 23.6%, with a payback of 3.6 years.

Value
Initial capital expenditure is estimated at $464-million, including about $230-million for the mill and tailings facility.

Duration
The process plant construction is scheduled to begin in the fourth quarter of 2020, with full capacity production expected by the fourth quarter of 2022.

Latest Developments
Monarques Gold is studying the use of freight rail operator Ontario Northland Railway’s infrastructure to transport ore from its Wasamac gold project to Glencore Canada’s Kidd concentrator, in Timmins, Ontario.

The company has entered into a memorandum of understanding with Ontario Northland, with the aim of completing an economic study before the end of December.

Monarch is considering custom milling options for Wasamac, which will significantly reduce the construction costs of the mine, compared with building a mill and tailings facility directly on site.

The 2018 feasibility study calculates that Wasamac will require initial capital of C$464-million, of which C$230-million is for the mill and tailings facility.

Key Contracts and Suppliers
BBA (feasibility study).

Contact Details for Project Information
Monarques Gold senior geologist – communications specialist Elisabeth Tremblay, email e.tremblay@monarquesgold.com.