Monarques Gold Corp. entered a custom milling contract with Eldorado Gold Corp. to process ore from the latter's Lamaque gold mine in Quebec.
Under the deal terms, Monarques will process between 50,000 tonnes and 55,000 tonnes of Lamaque ore at the Camflo gold mill, also in Quebec, until Dec. 31. The contract is extendable by mutual agreement of both parties.
The contract will enable the Camflo mill to operate at 90% of its 1,200 tonne-per-day capacity, and will effectively reduce the operating costs for Monarques' Beaufor gold mine over the coming months, President and CEO Jean-Marc Lacoste noted.
Monarques, meanwhile, has also secured authorization from Quebec's ministry of sustainable development, environment and climate change to increase Camflo's operating capacity to 1,600 tonnes per day, which will allow it to offer milling services to other clients.