Name of the Project
Wasamac gold project.

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

Client
Monarques 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
Yamana has reported that it will acquire the Wasamac property and Camflo mill.

The miner will buy the outstanding shares of Monarch Gold for C$152-million in cash and shares.

Yamana has said that the Wasamac underground gold project, which is about 100 km from its 50%-owned Canadian Malartic mine, fits in well with its exploration and development strategy and that it is well- uited to its expertise.

The geological characteristics of the Wasamac orebody suggests that it has the potential to be an underground mine of the same scale, grade, production and costs as Yamana’s Jacobina mine, in Brazil, and the company has said it shows many parallels to the Canadian Malartic underground project.

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.