Disseminated on Behalf of: LaFleur Minerals Inc.
- With strong gold prices, LaFleur Minerals has assembled a strong, near-term production gold project with a gold mill and a nearby gold deposit located in Quebec’s renowned Abitibi Gold Belt.
- The company’s longer-term goal is to consolidate gold deposits in proximity to the Beacon Gold Mill in the Val-d’Or region and be a second-tier player developing deposits that require a mill for ore processing.
- The strategic acquisition of the Beacon Gold Mill and Swanson Gold Deposit provides a strong foundation for sustainable growth for LaFleur Minerals and the ability to process ore from other gold projects in the region.
Lagging gold prices in the years leading up to 2019 were tough on some smaller miners, especially those who had taken on debt to build infrastructure and explore. Additionally, investment capital for mineral exploration was nonexistent and many great gold projects suffered, with some even going into receivership.
This created an opportunity for junior miners with strong capital markets backing to purchase high-potential properties and facilities at lower costs out of court proceedings, then operate them in a portfolio of projects that make near term gold production possible.
LaFleur Minerals Inc. (CSE: LFLR | OTCQB: WPNNF) concluded the purchase of properties in Quebec’s Abitibi Gold Belt this fall — properties previously owned by Monarch Mining Corp., which went into creditor protection in 2023 under the Companies' Creditors Arrangement Act (CCAA). LaFleur’s strategy is built around one of the properties — the fully permitted Beacon Gold Mill near the community of Val-d’Or. Monarch Mining completed a $20-million modernization of the mill not long before suspending operations in late 2022 and entering CCAA procedures.
The Swanson Gold Deposit is the second property LaFleur purchased. It will supply the Beacon Gold Mill with its first ore material to process into gold. Only 40 kilometers down the road, the Swanson Gold Project is an advanced-stage, relatively high-grade gold deposit, with 400 claims over 15,000 hectares. It is suitable for a lower-cost open-pit operation, with recent test drilling confirming the grade of inferred and indicated gold resources.
LaFleur aims to be an intermediate-level gold producer and consolidator of projects in Val-d’Or, Quebec
LaFleur Chairman Kal Malhi is the founder of Bullrun Capital, a Vancouver-based venture capital firm that has raised more than $300 million to fund a number of early-stage companies, with a focus on mining, technology, biomedical, and oil & gas. Mr. Malhi partnered with veteran miners and geologists Paul Ténière and Louis Martin, and past Monarch Mining CEO Jean LaFleur, who will act as an advisor, to assemble the LaFleur projects.
At present, senior gold producers are focusing on monster-size gold deposits above 3–5 million ounces in size, and this leaves smaller intermediate-stage gold project opportunities for well-funded junior miners, like LaFleur, to acquire and advance to production.
— Kal Malhi, Chairman, LaFleur Minerals Inc.
Not long before being forced into CCAA, Monarch Mining conducted 242 test drills at the Swanson property that established an initial scope of higher-grade deposits in a corridor extending over 27 kilometers and up to seven kilometers in width. This work by Monarch Mining has been updated with a current NI 43-101 Technical Report, which indicates the Swanson Gold Deposit has:
- A total Indicated Mineral Resource Estimate of 2,113,000 t with an average grade of 1.8 g/t gold for 123,400 oz of contained gold.
- A total Inferred Mineral Resource Estimate of 872,000 t with an average grade of 2.3 g/t gold for 64,500 oz of contained gold.
LaFleur is raising funds to conduct additional testing in those target areas and plans to develop a Preliminary Economic Assessment of the site in 2025. They intend to start an open-pit operation at the site once that evaluation is complete.
Both Swanson and Beacon Mill are in well-developed areas and are road-accessible with nearby power and rail infrastructure. Moreover, there are 30 active gold deposits within 50 kilometers of Beacon Mill.
“We can combine the fully permitted and updated Beacon Mill and Swanson Gold deposit and be a near-term producer,” Malhi says. “That’s a starting point, not our end game. Our end game is to be a consolidator of other properties in the region.”
“At present, senior gold producers are focusing on monster-size gold deposits above 3–5 million ounces in size, and this leaves smaller intermediate-stage gold project opportunities for well-funded junior miners, like LaFleur, to acquire and advance to production,” Malhi adds.
“LaFleur Minerals has capitalized on this opportunity and has acquired the fully permitted Beacon Gold Mill project and nearby Swanson Gold Deposit, which can provide near-term gold production. This also presents the opportunity to be a consolidator of ounces near the Beacon Mill and build a portfolio of mid-size gold deposits in the vicinity of the Beacon Gold Mill.”
Company aims to be an intermediate-tier gold exploration and production company, focused on the Val-d’Or region amongst the world class Abitibi Gold Belt
With the capacity to mill about 900 tonnes of ore daily, Malhi says they aim to scale production up to 100,000–150,000 ounces of gold annually from several properties within easy transportation range. With gold around $2,700 an ounce, getting to 100,000 ounces would bring in annual revenues of approximately $270 million.
“I see the major, big producers looking to acquire larger permit-stage projects and letting go of smaller projects,” he added. “Second-tier guys like us can pick up those smaller projects in the Val-d’Or region and combine those with our fully permitted Beacon Gold Mill. That’s our niche. We’re looking at intermediate-level projects that senior gold producers consider to be too small. We will consolidate and advance those projects with aggressive exploration plans and get those deposits into compliant deposit models and use those deposits to feed the Beacon Mill.”
To keep the mill busy, they can also bring in material from other miners in the region who don’t have their own mill. Out of the gate, the mill would support about 30 local jobs, with room for growth as they add shifts and expand capacity to meet demand over time.
Gold market likely to remain strong
LaFleur Minerals is counting on the gold market staying strong going forward, providing opportunities to consolidate smaller properties around a modern mill in a region with a proven track record of profitable gold mining. Quebec’s Abitibi Gold Belt is also attractive — a proven gold mining region not far behind Nevada or Australia in production, with a supportive provincial government that offers strong tax credits, including flow-through shares that help fund exploration.
“The region has a rich mining history, and Quebec is pro-mining,” he says.
The region has generated more than 190 million ounces of gold over the last 100 years, from 124 mines.
All of that adds up to significant profit potential as long as they remain diligent on expenditures.
“We offer an investment opportunity where our investment can see returns quickly because of the existing mill and nearby Swanson Gold property,” he says. “We’re just starting as a gold consolidator in Val-d’Or Quebec, and this offers a great opportunity for investors to jump in while we are at this phase.”
To learn more about LaFleur Minerals, visit its website here.