Under the study’s base case assessment, Wasamac would be a 6,000-metricton- per-day (mt/d) underground mine, integrating Rail-Veyor technologies and a paste backfill system to a top-down mining approach, feeding a process plant 2 km from the mine site, with neutral dry-stacked tailings disposal some 5 km further on so as to minimize the project footprint locally.

Wasamac gold production would average 142,000 ounces per year (oz/y) over a mine life of 11 years. Preproduction capital expenditures are estimated at C$464 million. All-in sustaining costs of production are estimated at US$630/oz.

Monarques President and CEO Jean- Marc Lacoste said, “The feasibility study is based on a top-down mining approach and the use of the Rail-Veyor system through a twin-ramp access and haulage facility, which eliminates the hefty initial capital expenditures associated with building a shaft, increases flexibility in mine planning, shortens the timeline to production, and allows us to significantly decrease the overall cost of the project. We also believe that we will be able to extend the Wasamac mine life, as the deposit remains largely under-explored at depth and along strike.

The company created a confidential virtual data room to provide access for those who have expressed an interest in reviewing the data and participating in development of the project. “The feasibility study also leaves the door open to a potential custom milling option,” he said. “Eliminating the cost of building a mill and a tailings facility would reduce the initial capex by about C$230 million, which could potentially increase the project’s internal rate of return and decrease the payback period.”

Mine infrastructure will be located on the company’s newly acquired land next to the Trans-Canada highway and 200 m from the railway leading to all the main regional custom milling facilities. Proven and probable mineral reserves for the Wasamac project currently stand at 21.4 million mt at a grade of 2.56 grams/ mt gold, for 1.8 million oz of contained gold. Pending completion of all studies and receipt of the required permits and financing, construction of the Wasamac process plant is scheduled to begin in the fourth quarter of 2020, with full capacity production achieved by the fourth quarter of 2022.