Monarques Gold Corp. completed an updated resource estimate for the McKenzie Break gold project in Quebec, outlining two scenarios. The first scenario comprises a combination of open pit and underground resources, while the second scenario covers only underground resources.
The company will work on increasing the open pit potential at McKenzie Break, aiming to use the ore as additional feed for its nearby Beacon mill, which is expected to resume operating in the fourth quarter.
Under the first scenario, pit-constrained indicated resources comprise 939,860 tonnes grading 1.59 g/t for 48,133 ounces, with pit-constrained inferred resources of 304,677 tonnes at 1.52 g/t for 14,897 ounces. Underground indicated resources comprise 281,739 tonnes grading 5.90 g/t for 53,448 ounces, with underground inferred resources of 270,103 tonnes at 5.66 g/t for 49,130 ounces.
For the second scenario, underground indicated resources are estimated at 422,166 tonnes grading 6.27 g/t for 85,059 ounces, with underground inferred resources of 318,459 tonnes at 5.70 g/t for 58,373 ounces.
The analysis uses cutoffs of 0.52 g/t for pit-constrained resources and 3.5 g/t for underground resources, according to a June 14 statement.
Monarques entered into an agreement in late 2017 to acquire the property along with another gold project for C$4.6 million in cash and shares over four years.
The company said its review of historical drill data on the project identified about 11 new mineralized structures on top of the 12 previously defined, indicating the possibility of an open pit operation.