Monarch Gold Corporation (TSX:MQR) (OTC:MRQRF) (FRANKFURT:MR7) has entered into a memorandum of understanding (MOU) with Glencore Canada Corporation regarding the potential use of Glencore’s Kidd concentrator in Timmins, Ontario for the treatment of ore to be mined from Monarch’s Wasamax gold property in Québec.
The study by the two companies will be conducted in four stages.
Phase 1 – Upgrading Study: Monarch will launch a study on upgrading the Concentrator, or part thereof, and related infrastructure to ship the ore from the Wasamac property by railway to have it processed and transformed into dore bars at the Concentratot. The Upgrading Study will be funded by Monarch and shall be completed by December 31, 2020 at the latest.
Phase 2 – Negotiation and Signing of a Toll Milling Agreement: If the parties agree that the results of the Upgrading Study are positive for each of their interests, Monarch and Glencore will negotiate in good faith to enter into a toll milling agreement. The Toll Milling Agreement shall be executed by March 30, 2021 at the latest, failing which Glencore shall have no further obligations hereunder.
Phase 3 – Concentrator Upgrading Work: Further to the execution of the Toll Milling Agreement, Monarch will fund the work to upgrade the Concentrator and related infrastructure. Phase 3 shall be completed by the end of July 2023 at the latest.
Phase 4 – Performance of the Toll Milling Services: Once Phase 3 is completed, Monarch will ship the ore from its Wasamac property to the Concentrator and Glencore will process it in compliance with the Toll Milling Agreement between the parties. The first delivery of ore from the Wasamac property to the Concentrator shall take place by or prior to December 31, 2023.
In the coming weeks, Monarch will retain the services of one or more consultants to perform the Upgrading Study.
Located in Timmins, Ontario, Glencore Canada Corporation runs the Kidd Operations consisting of the Kidd Metallurgical Site and the Kidd Mine.
The Concentrator is located on the property of the Kidd Metallurgical Site. Built in 1966 with numerous upgrades over the years, the Concentrator currently processes metal ore to produce copper and zinc concentrates. The facility has a design rated capacity of 12,500 tonne-per-day and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway.
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining company focused on becoming a 100,000 to 200,000 ounce per year gold producer through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec. The Corporation currently owns over 330 sq km of gold properties, including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor, Croinor Gold, Fayolle, McKenzie Break and Swanson advanced projects, and the Camflo and Beacon mills. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.
