Monarch Mining Updates Mineral Resource At The Beaufor Mine

• Geological and grade continuity demonstrated for all 63 mineralized zones of the Beaufor mine
• Beaufor mine contains a Measured resource of 121,000 tonnes grading at 5.62 g/t Au for a total of 21,900 ounces of gold and an Indicated resource of 310,100 tonnes grading at 7.10 g/t Au for a total of 70,800 ounces
• Inferred resource estimated at 134,600 tonnes grading 6.96 g/t Au for a total of 30,100 ounces
• Mineral resource estimated using the polygonal method, based on muck samples and diamond drill hole data
• Resource estimate developed for an underground scenario using a cut-off grade of 3.20 g/t Au
• Additional diamond drilling would likely upgrade some of the Inferred resource to the Indicated category and would likely identify additional resources down-plunge and in the vicinity of known mineralization
  

Montréal, Québec, Canada, January 28, 2021 – MONARCH MINING CORPORATION (“Monarch” or the “Corporation”) (TSX: GBAR) is pleased to announce an updated mineral resource estimate for its advanced, wholly-owned Beaufor Mine project, 20 kilometres northeast of Val-d’Or.

The Beaufor mine began commercial production in the early 1930s and over the years has produced over 1.1 million ounces of gold. The mine is currently on care and maintenance, which has given Monarch an opportunity to complete a 3D compilation and targeting program to identify, define and drill exploration targets throughout the mine area. In June 2020, the Corporation initiated a 42,500-metre diamond drilling program to test two types of targets: the areas around historical high-grade intersections near the existing underground infrastructure, and isolated resource blocks, which are typically defined by a single drill intersection. These “near-mine” exploration targets can be tested from the existing underground workings or by shallow holes drilled from the surface. Currently, 275 exploration holes are in the process of being drilled or are planned, and if they produce positive results, additional holes will be drilled to allow the zones in question to be converted into resources and ultimately reserves, for inclusion in a future mine plan. Along with the surface drilling, the underground portion of this exploration program has been ongoing since June 2020 with four underground drill rigs. The first series of underground assay results were reported in a press release dated October 1, 2020, while the first series of shallow, near-surface drill results were reported in a press release dated January 19, 2021. These recent drill results were not part of the current resource estimate.

The current mineral resource estimate was prepared by Christian Tessier, P.Geo., of Monarch and reviewed and validated by Carl Pelletier, P.Geo., of InnovExplo Inc. of Val-d’Or (Quebec), using all available information. The 2020 mineral resource estimate included information up to October 27, 2020.  The effective date of the 2020 MRE is December 18, 2020.

The 2020 mineral resource estimate area covers an approximate strike length of 1.5 km by a width of 900 m, down to vertical depth of 1,200 m below surface. The project database used for the 2020 mineral resource estimate contained 10,009 drill holes (882,544 m) and 178,242 assays as at October 27, 2020. It comprises 63 distinct mineralized zones that generally follow east-west trending corridors in the granodiorite, generally in the vicinity of a contact with mafic volcanic rocks. The gold mineralization occurs predominantly in the quartz veins and sometimes with disseminated pyrite in the altered granodiorite in the wall rock of the quartz veins.

The table below presents the results of the 2020 mineral resource estimate for the project at a 3.20 g/t Au cut-off grade for potential extraction methods as at December 18, 2020.

Mineral Resource Estimate notes:

1. The independent and qualified person for the 2020 MRE, as defined by NI 43-101, is Carl Pelletier, P.Geo. (InnovExplo Inc.), and the effective date is December 18, 2020.
2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability. The mineral resource estimates follow CIM Definition Standards and Guidelines.
3. A capping of 68.5 g/t Au on assays was applied for zones 8, B, M, M1 and Q, and 34.25 g/t for all other zones. The DDH intercepts (min. 2.4 m) were capped at 16.5 g/t.
4. The estimate method was polygonal on cross-sections with a minimum width of 2.4 m using a density of 2.75 t/m3 for the 63 mineralized zones.
5. Measured resource polygons extend 8 m above and below development and up to 10 m laterally. Indicated resource polygons extend up to 20 m from DDH intercepts, along dip and along strike and a minimum of 2 polygons need to be in contact. Inferred resource polygons extend up to 40 m from DDH intercepts, along dip and along strike where a drill spacing ranges from 20 m to 40 m and/or in areas of isolated drill holes where mineralization is known.
6. The reasonable prospect for an eventual economical extraction is met by having a reasonable minimum width for the polygons, a cut-off grade of 3.20 g/t Au, application of constraining volumes on the blocks (potential underground scenario) below a 30 m crown pillar. The cut-off grades inputs are: a gold price of USD1,612/oz, a CAD:USD exchange rate of 1.34; a mining cost of $100/t for the long hole method and $145/t for the room and pillar method; a processing cost of $50/t; and G&A and environment of $13/t and includes the royalty of 1.0% and a refinery charge of $5/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).
7. Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348. The number of tonnes and ounces was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations as per NI 43-101.
8. InnovExplo Inc. is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate.

“Monarch Mining continues to advance the Beaufor property in order to return it to commercial production,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “The resource estimate confirms that there is still significant mineralization in the mine. We plan to continue with our current exploration program aimed at identifying and drill-testing high-grade veins and vein extensions, with the ultimate goal of growing this resource and restarting gold production at the Beaufor Mine within 8 to 14 months to take advantage of the very favourable gold market.”

The technical and scientific content of this press release has been reviewed and approved by Christian Tessier, P.Geo., the Corporation’s qualified person under National Instrument 43-101.

About Monarch

Monarch Mining Corporation (TSX: GBAR) is a gold mining, development, and exploration company, focused in the prolific Abitibi mining camp in Canada. The Corporation owns four advanced gold properties including the fully permitted past producing Beaufor Mine, which has produced over 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located in the vicinity of its wholly owned and fully permitted 750 tpd Beacon Mill.

Forward-Looking Statements

The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.