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Tuesday, January 24, 2017 Derek Macpherson

MQR's Gold Bug Results Shine


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Monarques Gold Corp. (TSXV:MQR) announced results from the first hole out of five that were drilled at the Gold Bug target as part of the recently completed 10km drill program on the company’s Croinor gold property. The results were highlighted by a wide, near-surface intercept of 25m that returned 8.41 g/t Au, including 36.10 g/t Au over 3m and 39.35 g/t Au over 2m. In our view, today’s results are an early indication of Gold Bug’s potential to add ounces and grow Croinor’s resource. At C$162/oz, Monarques currently trades at a premium to peers (C$69/oz). It is likely that further positive results from Gold Bug could provide additional momentum for the stock.


Results support Gold Bug’s potential. Hole CR-16-521 was drilled less than 500m from the Croinor Gold deposit at the Gold Bug target that was discovered in the fall of 2015. Results were highlighted by a wide, near-surface interval that returned 8.41 g/t Au over 25m, including 36.10 g/t Au over 3m and 39.35 g/t Au over 2m. In addition, the hole returned two intercepts of 0.47 g/t Au over a wide interval of 28m and 1.13m over 15m. While early days, these results suggest that Gold Bug could become an important new zone for the Croinor project and materially improve the project’s economics.

Current valuation highlights exploration upside. At C$162/oz, Monarques currently trades at a premium to peers (C$69/oz). In our view, this valuation is supported by Croinor’s stage of development (pre-feasibility study), the exploration potential of its various targets and the recent acquisition of the Beacon Mill. We believe recent results have highlighted Croinor’s exploration potential and pending results should provide further near-term momentum for the stock.
 
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
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Monarques Gold Corp - TSXV:MQR -  1,2,4

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