Emerging Gold Mining Company in Abitibi - Quebec. Corporate Presentation SEPTEMBER 2018

Transcription

1 Emerging Gold Mining Company in Abitibi - Quebec Corporate Presentation SEPTEMBER 2018

2 Why Monarques? Goal to become a k/year gold producer Wasamac Project 1984 Main focus: Wasamac gold project M&I resource of 2.6 million ounces of gold Feasibility study to be completed by the end of 2018, using latest proven technologies and new production strategy Cash-flow generation through custom milling Growing revenue stream from Camflo Mill Beacon Mill to restart if demand continues to increase Camflo Mill Continuous value creation Ongoing drilling programs at Croinor Gold and Beaufor Goal to increase resources of advanced stage projects (+500k oz M&I gold resource) Solid financial position and financial partners Over CA $15 million of cash on hand (as at June 30, 2018) Major partners include Alamos Gold, Rob McEwen, Greg Chamandy, Agnico Eagle Mines and several Quebec funds Beacon Mill Attractive valuation Enterprise value of CA $8/oz vs peer average of CA $57/oz Market capitalization of ~CA $44 million 1 *Au 1 er Juin as of August 31,

3 Strong Shareholder Base Major mining and institutional financial partners Float 28% Alamos Gold 19% Quebec Funds 10% Nemaska Lithium 7% Other Partners 23% Agnico Eagle 1% Evanachan (Rob McEwen) 5% Oxbridge Group (Greg Chamandy) 5% Management 2% 3

4 300 km 2 Portfolio of Mining Assets Abitibi historical production of over 125 million ounces of gold 4

5 Wasamac Ongoing feasibility study on 2.6 million ounce deposit World-class gold project with extensive existing infrastructure Produced 252,923 ounces of gold from 1965 to 1971 Strong potential to increase resources: Main Zone open to the east and at depth, and Zones 2 and 3 open at depth Wasamac 1 (as at October 25, 2017) Tonnes Grade (Mt) (g/t Au) Ounces Measured resources ,300 Indicated resources ,264,500 Total, measured and indicated resources ,587,900 Inferred resources ,900 1 Source: Technical Report on the Wasamac Project, Rouyn-Noranda, Québec, Canada, Tudorel Ciuculescu, M.Sc., P.Geo., October 25, 2017, Roscoe Postle Associates Inc. MacWin Zone Feasibility study with BBA to be completed by the end of

6 Wasamac Deposit comparable to Goldex and Young-Davidson mines Goldex (Agnico Eagle) Young-Davidson (Alamos Gold) Wasamac (Monarques) Stage Production Production Advanced Deposit type Stockwork veins Stockwork veins Shear-hosted Depth (m) 800-1, , ,000 Reserves (proven and probable) Resources (measured and indicated) 886,000 ounces (1.64 g/t Au) 3,687,000 ounces (2.65 g/t Au) 1,777,000 ounces 1,246,000 ounces 2,587,900 ounces Grade (g/t Au) Mining method Long hole Transverse long hole Mining rate 5,100 tpd 8,000 tpd Mining dilution 15% 10% - 20% Operating cost/nsr $41/t $53.50/t 2017 production 118,974 ounces 200,000 ounces 6

7 Wasamac New production strategy Wasamac UG Access and Development Concept Top-down approach instead of bottom-up approach Advantages Lower projected CAPEX Increased production in the first years Strategy in line with use of Rail-Veyor rail system Wasamac Overall process plant Rail-Veyor portal 7

8 Wasamac Study to include Rail-Veyor rail system Proven cost-effective technology: CAPEX Similar to Trucks 50% of Conveyors Operating costs 10-20% of Trucks 80% of Conveyors Similar gold deposit using Rail-Veyor: Agnico-Eagle s Goldex Mine 8

9 Wasamac Potential alternative scenario: custom milling 9

10 Cash Flow Generation Growing revenue stream from custom milling activities Camflo Mill Wholly-owned mill Status: operating at 100% capacity Current clients include: Nottaway Resources Vezza Mine Eldorado Gold Lamaque Project Wallbridge Mining Fenelon Gold Project Camflo Mill Beacon Mill Beacon Mill Wholly-owned and fully permitted 750-tpd capacity mill Status: care and maintenance Mill ready to restart if custom milling demand continues to increase Growth Strategy Focus on pricing and customer satisfaction Investments to increase capacity and production efficiency Merrill-Crowe type plant 10

11 Croinor Gold Improving project potential Large property of 335 claims (151 km²) Fully-permitted old producing mine Two open pits, one ramp to level 125 and one 200-metre (656-foot) shaft Prefeasibility study update* (January 19, 2018): - Mine life of 3.6 years including pre-production - 602, g/t - Total production: 125,889 ounces of gold - Total cost per ounce: US $902 - Based on a gold price of US $1,280 and an exchange rate of CA $1.28/US $1 (CA $1,638) - After-tax IRR of 30% - Does not include drilling results after November 2015, which now totals over 30,000 metres of drilling Croinor Gold* (as at January 19, 2018) Tonnes Grade (metric) (g/t Au) Ounces Proven reserves 166, ,543 Probable reserves 436, ,759 Total of proven and probable reserves 602, ,292 Measured resources 80, ,700 Indicated resources 724, ,300 Total, measured and indicated resources 804, ,000 Inferred resources 160, ,400 Note: Mineral Resourcesinclude MineralReserves * Source: Monarques prefeasibility study (January 19, 2018) and resource estimate (January 8, 2016) Ramp Lev m shaft Lev. 125 Lev. 250 Excellent results from the ongoing 20,000-metre drilling program, which may considerably improve the project s potential 11

12 Beaufor Mine Goal to increase high-grade resource More than 1,160,000 ounces produced since 1933 at a historical grade of 7.5 g/t Au Will be placed on care and maintenance as of December 14, 2018 due to lower grades and gold price Goal to increase high-grade resource in order to restart mine Ongoing drilling program has intersected numerous high-grade gold intersections Beaufor Mine 1 (as of September 30, 2017) Tonnes Grade (metric) (g/t Au) Ounces Proven reserves 28, ,400 Probable reserves 111, ,200 Total of proven and probable reserves 139, ,600 Measured resources 74, ,100 Indicated resources 271, ,300 Total, measured and indicated resources 346, ,400 Inferred resources 46, ,400 Note: Mineral Resourcesexclude Mineral Reserves 1 Source: NI Technical Report on the Mineral Resource and Mineral Reserve Estimates of the Beaufor Mine as at September 30, 2017, Val-d Or, Québec, Canada, Carl Pelletier, P. Geo. and Laurent Roy, Eng. 12

13 McKenzie Break / Swanson Pit constrained gold deposits located near Beacon Mill Source: NI Technical Report on the McKenzie Break Project, April 17, 2018, Alain-Jean Beauregard, P.Geo., and Daniel Gaudreault, Eng., of Geologica Groupe- Conseil Inc., and Christian D Amours, P.Geo., of GeoPointCom Inc. Easily accessible as the average overburden thickness is only 5 metres wide Beacon Mill less than 20 km away Source: NI Technical Report on the Swanson Project, June 15, 2018, Christine Beausoleil, P.Geo. and Alain Carrier, P.Geo., M.Sc. of InnovExplo Inc. Mining lease would allow to put the deposit into production more rapidly Advantageous location, some 100 metres from a railway track, provides easy access to the Beacon Mill 13

14 Corporate Structure Shares outstanding Options (average exercise price: $0.22) Warrants (average exercise price: $0.41) Fully diluted shares Share price (as at August 31, 2018) High - low (52 weeks) Market capitalization Cash on hand (as at June 30, 2018) million 7.8 million 24.4 million million $0.19 $ $0.18 $44 million +$15 million 14 Management Team Jean-Marc Lacoste President and Chief Executive Officer Alain Lévesque, CPA, CA Chief Financial Officer Marc-André Lavergne, Eng. Vice-President, Operations Lucie Desjardins Director, Legal Affairs and Corporate Secretary Elisabeth Tremblay, P. Geo., M.Sc.A. Senior Geologist / Communications Ronald G. Leber, P. Geo. Chief Exploration Geologist Board of Directors Michel Bouchard Chairman of the Board * Jean-Marc Lacoste Director Michel Baril Director * Guy Bourassa Director and Secretary Christian Pichette Director * * Member of the audit committee

15 Attractive Valuation vs Peers Enterprise value per ounce and market capitalization (as at August 31, 2018) Enterprise value per ounce (EV/oz) $183 $90 $63 $52 $46 $16 $8 Avg $57 OSK PRB PGM MOZ VIT FPC MQR Market capitalization (in millions of CA$) $432 $261 $145 $138 $135 $83 $44 OSK VIT MOZ PRB PGM FPC *Au 1 er Juin MQR2015 Source: Company websites, Stockwatch and SEDAR. 15

16 Catalysts and Deliverables Focus on growing the Company Wasamac Gold project Feasibility study to be completed by the end of Study to include Rail-Veyor technology and new production strategy. Next steps will include project funding. Cash flow generation Increasing contribution from Camflo Mill custom milling operations. Restart of 750-tpd Beacon Mill subject to increase in demand. Develop our other gold assets Ongoing drilling programs on Croinor Gold and Beaufor. Next steps: mine dewatering and bulk sampling at Croinor Gold. Goal to become a k/year gold producer 16

17 Annex 1 Combined Measured and Indicated Resources 17

18 Annex 2 Croinor Gold Longitudinal Map 18

19 Forward-Looking Statements Certain information included in this presentation, including any information as to our future exploration, financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words expect, believe, will, intend, estimate and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, including the possibility that drill programs will not yield the expected results. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Monarques Gold Corporation to be materially different from the Company s estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company s most recent Form 20-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. The Company disclaims any obligation to update or revise any forwardlooking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements. The scientific and technical information contained in this presentation was reviewed and approved by Marc- André Lavergne, Eng., who is a Qualified Person within the meaning of National Instrument

20 Contact Jean-Marc Lacoste President and Chief Executive Officer Monarques Gold Corporation 68, Avenue de la Gare, Suite 205 Saint-Sauveur, Quebec J0R 1R GOLD (4653)