Emerging Gold Mining Company in Abitibi - Quebec Corporate Presentation AUGUST 2020
Why Monarch? LOCATED IN THE PROLIFIC ABITIBI GREENSTONE BELT § Large landholdings in Quebec § Established infrastructure § Top mining jurisdiction KEY PROJECTS STRONG ASSET BASE § Wasamac : Feasibility § Strong pipeline of Study completed, development & permitting underway exploration projects § Beaufor : UG drilling § Resource base: 3.2 Moz program underway; plan M&I and 0.4 Moz BUILDING A to re-start production Inferred 1 (inclusive of +100-200K/YEAR near-term reserves) GOLD § McKenzie Break : New PRODUCER § Two permitted mills with high-grade discovery; combined capacity of ~2,300 tpd drilling results pending ATTRACTIVE VALUATION § $42/oz vs peer average of $58/oz 2 § $153 million market cap 2 1 See table on slide 22 2 2 2 As of August 7, 2020
Our Focus Advancing Key Assets to Production ADVANCED EXPLORATION DEVELOPMENT PRODUCTION EXPLORATION Camflo Croinor - PFS Wasamac Swanson McKenzie Break Beaufor Mine (Care & Maintenance) Latest News • July 09: MOU with Ontario Northland Railway to transport Wasamac ore to Kidd Concentrator • June 22: Ausenco to conduct an upgrading study on the Kidd Concentrator for Wasamac • June 18: Vast, detailed compilation and 3-D modelling program underway on Camflo • June 11: Yamana Gold invest $4.2 million in Monarch Gold • May 20: New study shows that Wasamac tailings are non-potentially acid generating • May 14: MOU with Glencore regarding potential use of Kidd Concentrator for Wasamac 3
Over 315 km 2 of Mining Assets Abitibi – Historical Gold Production of Over 125 Moz 4
Wasamac – Overview Potential High-Margin Underground Operation Ownership: 100% Monarch Gold Location: 15 km west of Rouyn-Noranda Deposit type: UG shear-hosted deposit Mineral reserves: 1.8 Moz at 2.56 g/t Au (P&P) Dec. 2018 FS: Pre-tax NPV5% of $522 M, IRR of 23.6% (based on US$1,300/oz gold) Overall process plant Strategic advantages: Ø Faster permitting timeline (2 years) Ø Selected as a pilot project by Government of QC for permitting process support Ø Next to railroad and highway Ø Option for off-site milling (via train) Ø Excellent potential to expand mineral resources Ø Strong gold price environment (+US$2,000/oz) Current steps Ø Permitting process underway (Provincial EIA Notice filed in November 2019) Ø Seeking financing partnership to advance development Ø MOU with Glencore, exploring the trade-off opportunity of using the Kidd Concentrator in Timmins 5
Wasamac – Robust Project Economics Feasibility Study Highlights (December 2018) 2018 FS Gold Price Pre-tax NPV (5%) Gold Price Sensitivity (C$ M) US$1,300/oz CAD:USD 1.31 PRESENT $1,728 Economics NPV 5% Pre-tax /After-tax C$M 522/311 $1,584 IRR Pre-tax /After-tax % 23.6/18.5 $1,440 $1,296 Payback Yrs 3.6 Operational Tonnes mined Mt 21.5 Summary Average grade g/t 2.56 FS Recovery % 88.2 $522 Contained gold Moz 1.77 US$/oz $1,300 $1,800 $1,900 $2,000 $2,100 Total production Moz 1.56 225 Average production (y) koz 142 Annual production koz 200 Mine life Yrs 11 175 Cost Summary Average cash operating C$/t 150 50.24 Avg. 142 koz/y cost milled 125 US$/oz 550 100 75 All-in sustaining cost US$/oz 630 50 Capex Summary Construction cost C$M 464 25 Sustaining cost C$M 175 0 1 2 3 4 5 6 7 8 9 10 11 Year 6
Wasamac – Innovative Haulage Technology Introducing Proven Rail-Veyor Technology Proven, cost-effective technology: Capital costs Ø Similar to haul trucks Ø +50% less than overland conveyors Overall process plant Operating costs Ø 80% less than haul trucks Ø Similar to overland conveyors Energy efficient and beneficial to environment: Ø Lower energy consumption Ø Smaller carbon footprint Ø No particulates Ø Less noise, less dust Other mines using Rail-Veyor: Ø Goldex (Agnico Eagle) Ø Phakisa (Harmony Gold) SIMPLE / FAST / FLEXIBLE Ø Copper Cliff (Vale) 7
Wasamac – Comparables Deposit Comparable to Goldex and Young-Davidson Mines Goldex Young-Davidson Wasamac (Agnico Eagle) (Alamos Gold) ( Monarch Gold ) Stage Production Production Feasibility Deposit type Stockwork veins Stockwork veins Shear-hosted Depth (m) 800 - 1,500 750 - 1,500 0 - 800 Reserves (P&P) 1,088,000 ounces 3,146,000 ounces 1,767,000 ounces Mining method Long hole Transverse long hole Transverse long hole Mining rate 7,630 tpd 6,720 tpd 6,000 tpd Head grade (g/t Au) 1.71 2.56 2.56 Production cash cost US$584/oz US$800/oz US$550/oz 140,884 ounces 188,000 ounces 142,000 ounces Annual production (2019) 1 (2019) 2 (LOM) Using Rail-Veyor since 2017 1 Source: press release dated February 13, 2020 2 Source: press releases dated February 18 and 19, 2020 8
Wasamac – Upside Opportunities Potential to Increase Mineral Reserves – Open at Depth Ø M&I resources 1 of 2.6 Moz at 2.70 g/t Au (inclusive of reserves) Ø All zones are open at depth Historical Production 252,923 oz (1965-1971) Zone 1 &2 Main Zone Zone 3 Horne Creek Fault -400m Zone 4 -800m 1 See table on slide 22 9
Wasamac – Upside Opportunities Drilled only to 800 m vs +1,500 m for Mines along Cadillac Break 10
Beaufor Mine – $5 Million Financing with CDPQ Re-start Underground Operations within 12-18 Months Ownership: 100% Monarch Gold Location: 20 km northeast of Val-d’Or Operation: 1933-1951 & 1993-2018 Ore processing: 100% owned Camflo mill (50 km) Status: Care & Maintenance (06/2019) Current steps Ø Secured a $5 million royalty financing with Caisse de dépôt et placement du Québec (CDPQ) to fund an exploration program with the goal of restarting the mine Ø Started a 42,500-metre drilling program focusing on high-grade zones and expanding resource blocks Ø No permits required to re-start operations Ø Timeline to production <18 months 11
Beaufor Mine – Substantial Potential for Resource Increase Monarch Starting a 42,500-Metre Drilling Program Longer UG drill holes (19 holes – 6,000 m) Near-mine exploration (194 holes – 20,000 m) High-Grade Targets 81 DDH, 9,700 metres Resource Block Targets Long DDH Targets 113 DDH, 10,300 metres Mine surface holes (20 holes – 4,000 m) Below current mine workings (31 holes – 10,000 m) Area to be tested by surface drill holes High-Grade Targets Resource Block Targets Area to be tested below the mine 12
Beaufor Mine – Strong Potential at Depth Below Current Mine Workings – How do we Compare! Holloway Mine Timmins West Kirkland Lake Hoyle Pond Westwood Holt Mine Beaufor Lamaque McIntyre Hollinger LaRonde Doyon Dome Sigma Lapa 0 Ø Beaufor is relatively shallow compared to -500 other gold mines in Abitibi -1000 Ø Beaufor production to a depth of 900 metres -1500 Average 1,567 m Ø Limited drilling at depth -2000 confirms that the Shaft / Ramp Depth (m) mineralized gold -2500 structures continue -3000 Area to be tested below the mine 13
McKenzie Break High-Grade Exploration Project with Strong Upside Potential Ownership: 100% Monarch Gold (acquired in December 2017) Location: 35 km northeast of Val-d’Or Status: Advanced exploration Mineral resources 1 : Pit-constrained indicated resource of ~50,000 oz and UG indicated resource of ~55,000 oz Current activities Best results since acquiring the property Hole Length From To Width* Grade Au Ø Newly defined mineralized zone, number (m) (m) (m) (m) (g/t) which now measures in excess MK-18-205Ext 426 356.5 363.6 7.1 32.30 of 150 metres x 150 metres , is MK-20-255 392 300.65 315.0 14.35 13.95 located to the east of Monarch’s MK-18-196 300 254.8 257.4 2.6 61.20 current resource estimate MK-19-250 426 329.0 340.0 11.0 10.50 Ø Mineralization to the east is MK-19-249 432 379.5 393.2 13.7 5.28 higher grade and thicker MK-19-241 432 363.0 365.1 2.1 26.78 Ø Planning 4,000-metre follow-up MK-18-216 177 133.3 143.0 9.7 5.76 drilling program to expand and define the outer limits of this MK-20-255 392 379.0 381.0 2.0 27.15 mineralized horizon MK-19-251 414 334.0 340.0 6.0 7.04 MK-20-253 429 351.8 359.0 7.2 5.34 * The width shown is the core length. True width is estimated to be 90-100% of the core length. 1 See table on slide 22 14
McKenzie Break 2019-20 Drilling Program Discovers New High-Grade Zone 15
Camflo Former Gold Producer with Potential at Depth Ownership: 100% Monarch Gold Location: 15 km northwest of Val-d’Or Status: Exploration Previous producer: Camflo mine produced 1.65 Moz of gold (8.9 Mt at 5.78 g/t Au)* Current activities Ø Vast, detailed compilation and 3D modelling program Ø Started a high-resolution helicopter-borne magnetic survey of the property Ø Compilation using the currently available data, more modern 3D modelling and exploration techniques developed over the last three decades *Source: QERPUB-M.E.R. Publication DV93-01 Rapports des Géologues Résidents sur l’Activité Minière Régionale, 1993 16
Camflo Excellent Location and Geological Context 17
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