Monarch Mining, the Canadian fully integrated mining company, has announced that it has suspended operations at the Beaufor Mine due to financial and operational challenges, and that the mine will be put on care and maintenance for an undetermined period.

Beacon Mill’s mechanical and procurement issues

On August 31, 2022, the corporation said that the slower ramp-up of the Beacon Mill following a number of mechanical and procurement issues, as well as problems with the grade reconciliation of the material stockpiled, had caused cash restrictions and forced a slowdown in mining activities at the Beaufor Mine.

Following a review of operations, Monarch received confirmation of continuing significant discrepancies between the reported grade of the material mined at Beaufor, as well as the grade of material processed at the Beacon Mill. 

Mining operation challenges 

These issues have caused continued lower cash flow from operations than expected and consequently have resulted in insufficient funds generated for the Corporation to continue its operations, a statement explained.

“The decision taken by the Board and management was after careful consideration of all available information from the mine and mill operations, and the Corporation current and projected financial situation. We understand that this situation is difficult for our shareholders, employees and stakeholders,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. 

‘’We will continue to work towards resolving the present situation at the operations while seeking strategic and financial alternatives to maximise stakeholder value.”

The corporation intends to continue to process the estimated stockpile of 20,000 tonnes to generated funds prior to placing the Beacon Mill on care and maintenance, he continued.

In addition, Monarch plans to start a complete review of identified issues, including stockpile management and its mining methods, to find solutions to resolve the dilution issues, the statement said.

Furthermore, the company has begun a strategic review of its assets and operations, and is working closely with its lenders, suppliers, customers, and potential investors to develop a strategy to fund its activities.