Quebec’s newest gold producer
With its gold resources trading at less than one third
of the valuation of its peers—For now
With its gold resources trading at less than one third of the valuation of its peers—For now
PUBLISHED JULY 31, 2018
Monarques Gold Corp. (TSX-V: MQR) is Canada’s newest
PUBLISHED JULY 31, 2018
Monarques Gold Corp. (TSX-V: MQR) is Canada’s newest gold producer and one of the very few junior gold mining companies in the world who are in production and pouring gold. They also generate revenue from their two mills by contract milling ore for their neighbors.
- They are undervalued relative to their peers. The shares are trading at a value equal to $12 per ounce of gold in the ground compared to comparable companies that are trading at upwards of $60 per ounce,
- The company has $18 million of cash,
- They are in a mining friendly jurisdiction, Abitibi region of Quebec, with access to roads, employees and electricity,
- They are in production and generate additional revenue by milling ore for their neighbors such as Osisko gold and Eldorado gold,
- “Smart Money” has invested in them, names such as: Alamos Gold, Rob McEwen-founder of Goldcorp, Greg Chamandy-Chairman of Richmont Mines, Agnico Eagle Mines and several Quebec funds are significant shareholders,
- Jean-Marc Lacoste the founder and CEO is a major shareholder.
The Camflow Mill has a history of running at a 98.5% recovery rate, has a replacement cost of $40 million and is at full capacity. Twenty five percent of its capacity is used to process the ore from Monarques Beaufor Mine and seventy five percent is used to process ore from neighbors such as Osisko gold and Eldorado gold. The Beacon Mill is expected to be in production by the fourth quarter of 2018.
Current Beaufor Mine production of 25,000 ounces of gold per year. More than 1,160,000 ounces of gold produced since 1933 at a historical grade of 7.5 g/t Au.
“Location, location, location” The Cadillac …region in Quebec is one of the most prolific areas in the world for gold mining and has unparalleled infrastructure and government support.
It’s hard to talk about Monarques Gold as an entity without touching on some of the company’s advanced projects. Monarques holds a 100-percent stake in all four of its Advanced Projects, all of which are located in Quebec. These projects are Croinor Gold, Wasamac, McKenzie Break and Swanson.
Croinor Gold is an advanced, prefeasibility stage project with a measured and indicated resource of 236,000 ounces of gold. This deposit was discovered in 1940 and is located 55 kilometers east of Val-d’Or. It consists of one mining lease and two blocks of claims totaling 335 claims over an area of more than 150 kilometers.
Wasamac is another advanced project with a Measured & Indicated Resources of 2,587,900 ounces of gold.
These advanced projects represent the future of Monarques Gold and a great many mining opportunities to come.
Monarques Gold’s, President and Chief Executive, Jean-Marc Lacoste also has “skin in the game” with his ownership of 4 million shares of Monarques worth a little over one million dollars at the current price.
Greg Beckett is a Director, Retirement, Estate & Trust Strategies at Beckett Wealth Management Inc. email@example.com