Monarch suspends operations at Beaufor Mine

MONTREAL, Sept. 27, 2022 (GLOBE NEWSWIRE) — MONARCH MINING CORPORATION (“ Monarch » or the « Company (TSX: GBAR) (OTCQX: GBARF) today announced that it has suspended operations at the Beaufor Mine due to financial and operational constraints. The mine will be placed in care and maintenance mode for an indefinite period.

As reported on August 31, the slower commissioning of the Beacon plant following a number of mechanical and supply issues, as well as issues with the grade reconciliation of warehoused material, caused cash flow restrictions and forced the Company to slow down its mining activities at Beaufor.

Following a review of its operations, the Company has received confirmation of the persistence of significant discrepancies between the reported grade of material mined at Beaufor and the grade of material processed at the Beacon mill, resulting in cash flows of operations were weaker than expected and generated insufficient funds to allow the Company to continue its activities.

The Company intends to continue to process the stored material estimated at 20,000 tonnes to generate funds before placing the Beacon plant in care and maintenance mode. In addition, the Company plans to begin a full review of the identified issues, including material inventory management and its mining methods, in order to find solutions to address the dilution issues.

The Company has initiated a strategic review of its assets and operations. Monarch is currently working closely with its lenders, suppliers, customers and potential investors to develop a financing strategy for its business.

“Today’s decision by the Board of Directors and management is the result of a careful review of all available information on the operations of the mine and plant, as well as the current and expected financial situation. of the society. We understand that this situation is difficult for our shareholders, our employees and our stakeholders,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “We will continue to work to resolve the current situation in mining operations, while seeking strategic and financial alternatives to maximize stakeholder value. »

About Monarch
Monarch Mining Corporation (TSX: GBAR) (OTCQX: GBARF) is a fully integrated mining company with four projects, including the Beaufor Mine, which has produced more than one million ounces of gold over the past 30 years. Other assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near the 750 tpd Beacon Mill, wholly owned by Monarch. Monarch owns 29,504 hectares (295 km²) mining assets in the prolific Abitibi mining camp which contain a combined measured and indicated gold resource of 666,882 ounces and a combined inferred resource of 423,193 ounces.

Forward-looking statements
Certain of the statements in this press release may constitute “forward-looking statements” within the meaning of applicable securities laws. All information contained in this press release, other than statements of current and historical facts, are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plan”, “expect”, “budget”, “direction”, “expected”, “estimate”, “forecast”. , “strategy”, “target”, “intention”, “objective”, “goal”, “includes”, “anticipates” and “believes” (and variations of these terms or other similar terms) and statements according to which certain actions, events or results “may”, “could”, “should”, “could” “occur” or “be achieved” or “will be taken” (and variations of these terms or other similar expressions) . All forward-looking statements contained in this press release are qualified by this cautionary statement. Forward-looking statements are not, and cannot be, guarantees of future results or events. These statements reflect Monarch’s current expectations regarding future revenues and business prospects and opportunities and are based on information currently available to Monarch. Monarch cautions that actual performance will be affected by a number of factors, many of which are beyond Monarch’s control, and that future events and results may vary materially from what Monarch currently anticipates. Factors that could cause actual results to differ materially from those in the forward-looking statements include the risks and uncertainties described in Monarch’s annual information form filed with the Canadian securities regulators on SEDAR (www.sedar.com) on 1^er December 2021. Risk factors that could cause actual results to differ materially from those projected herein include, but are not limited to: the timing and expected cost of care and maintenance activities at the mine Beaufor, the dangers inherent in the operation and closure of mining projects, volatility in financial markets or general economic conditions; capital requirements and the need for additional financing, unanticipated changes in production, mineral reserves and mineral resources and related grades, metallurgical recoveries and loss of key personnel. Although Monarch has attempted to identify important factors that could cause its actual results, performance or achievements to differ materially from those described in the forward-looking statements, there are other business risks and dangers associated with exploring mining, development and mining operations that cause its results, performance or achievements to differ from expectations, estimates or intentions. Although Monarch believes that the forward-looking statements contained herein are based on reasonable assumptions (including assumptions regarding economic, business and political conditions), readers cannot be assured that actual results will be consistent with such statements. Monarch expressly disclaims any intention or obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

www.monarchmining.com

Table 1: Combined Monarch Gold Resources