Monarch Mining Corp. has suspended its operations at the Beaufor mine due to financial and operational challenges. The mine will be placed on care and maintenance for an undetermined period. A slower ramp-up of the Beacon mill following several mechanical and procurement issues, as well as problems with the grade reconciliation of the material stockpiled, caused cash flow restrictions and forced the company to slow its mining activities.
Monarch said it will continue to process the 20,000-metric-ton (mt) stockpile to generate funds prior to placing the Beacon mill on care and maintenance. In addition, the company is planning to start a complete review of identified issues, including stockpile management and its mining methods in finding solutions to resolve dilution issues.
“The decision taken today by the board and management was after careful consideration of all available information from the mine and mill operations, and the company’s current and projected financial situation. We understand that this situation is difficult for our shareholders, employees and stakeholders,” said Monarch President and CEO Jean-Marc Lacoste. ‘’We will continue to work towards resolving the present situation at the operations while seeking strategic and financial alternatives to maximize stakeholder value.”
Monarch secured financing in August of last year to reopen the Beaufor mine and it poured its first gold in July after processing record daily tonnages.