Monarques Gold intersects 8.41 g/t Au over 25 metres (83 feet) on Gold Bug (Croinor Gold)

Monarques Gold intersects 8.41 g/t Au over 25 metres (83 feet) on Gold Bug (Croinor Gold)

Monarques Gold intersects 8.41 g/t Au over 25 metres (83 feet) on Gold Bug (Croinor Gold)

The near-surface discovery lies within a shear zone at least 170 metres long

Monarques Gold intersects 8.41 g/t Au over 25 metres (83 feet) on Gold Bug (Croinor Gold)

MONTREAL, Jan. 24, 2017 – MONARQUES GOLD CORPORATION (“Monarques” or the “Corporation”) (TSX-V: MQR) (FRANKFURT: MR7) is pleased to report the results of Hole CR-16-521, which has returned anomalous to economic grades from a shear zone at least 170 metres long vertically on the Croinor Gold property, 70 km east of Val-d’Or, Quebec. The hole was drilled in the Gold Bug area, which lies less than 500 metres from the Croinor Gold deposit.

The largest intersection returned 8.41 g/t Au over 25 metres (see plan view), including 36.1 g/t Au over 3 metres and 39.35 g/t Au over 2 metres. The intersection is shallow, from 29 to 54 metres down the hole. The hole also returned other notable intersections, with 0.47 g/t Au over 28 metres (from 82 to 110 metres), 1.13 g/t Au over 15 metres (from 141 to 156 metres) and 1.81 g/t Au over 3.15 metres (from 165.85 to 169 metres). The reported lengths are core lengths, as the true lengths cannot be estimated. High grades were cut to 70 g/t Au, the same grade used in the Croinor Gold deposit resource estimate. The current 10,000-metre program included drilling on the Gold Bug area to follow up on results obtained in 2016 (see news releases dated January 26 and June 8, 2016). Additional results are pending.

“The results for Hole CR-16-521 combined with those from the 2015 program significantly enhance the potential of the Gold Bug area and of the Croinor Gold project as a whole,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. “These results support our conviction that the Croinor Gold property remains relatively unknown over its vast 150 km2 area and could well contain other ore deposits like the Croinor Gold deposit.”

The technical and scientific content of this press release has been reviewed and approved by Donald Trudel, P.Geo., B.Sc., the Corporation’s Qualified Person under National Instrument 43-101.

Sampling normally consisted of sawing the core into two equal halves along its main axis and shipping one of the halves to the ALS Minerals laboratory in Val-d’Or for assaying. The samples are crushed, pulverized and assayed by fire assay with atomic absorption finish. Results exceeding 3.0 g/t are re-assayed using the gravity method. Samples containing gold grains are assayed using the metallic sieve method at the ALS Minerals laboratory in Val-d’Or. Monarques has established a full QA/QC protocol, including the insertion of standards, blanks and duplicates.

ABOUT MONARQUES GOLD CORPORATION

Monarques Gold is a growing junior gold company focused on becoming the leading explorer and developer of gold properties in the Val-d’Or/Abitibi gold camp in Quebec, Canada. The Corporation currently has approximately 200 km² of gold exploration properties (see map) along the Cadillac Break; plus its main asset, the Croinor Gold mine, which has great potential to become a producing mine. Monarques Gold is well financed and has close to $9 million in credits from Quebec’s Ministry of Energy and Natural Resources.

AU Service PSI nosedives

AU Service PSI nosedives

AU Service PSI nosedives

  • Employment and sales lead the contraction which now sit at 43.5 and 43.7 respectively
  • New Orders dropped by 4.7pts to 47.5, having spent most of 2016 expanding
  • Respondentsm suggested the “usual winter lull may have been deeper and longer this year”

Following suit with the dismla manufacturing PMI last week, the Service PMI has also unexpectedly dropped below 50

AU Service PSI nosedives

PMI reads are now a concern, with both manufacturing and service reads below 50. The indicators tends to lead GDP by 6-9 months, so persistent weakness here will eventually weigh on growth.

Part of our argument for RBA to hold rates until Q1 ’17 was based on all three PMI reads expanding above the 50 level – with two out of the three are below 50 we eagerly await the construction read later this week. Survey respondents have pointed towards reductions of government spending, lack of business confidence and prolonged winter for the cause of disappointment. If these trends persist then the weakness will eventually trickle into growth, currently the flagship of the economy.

We still do not anticipate that RBA will cut rates tomorrow. RBA are likely to want to see more inflation and employment data, and see how the leading indicators play out before reverting to an easing bias once more.

They, along with the rest of the globe will be waiting for the FED’s September meeting and hoping for a strong easing message at the least. Friday’s NFP was a miss but we’re not convinced it was extreme enough to rule out a hawkish tone for the FED. The long-term average of payrolls in August is 128k, so from that perspective the 151k print isn’t too bad.

AUD-USD traded to a 6-day high following the NFP miss on Friday. We could see gains extended following the rate statement but it will be later in the week before US day takes off that the pressure on AUD could return.

Friday’s candle formed a shooting star, with the day’s high returning back within the bearish wedge outlined. Although it closed back outside of the pattern we are open to the possibility of having to revise the boundaries of the bearish wedge, or even invalidate it if RBA hold rates and keep away from an easing bias tomorrow.

Until Friday’s high is broken we can still consider the sell-zone to consider fading into, which comprises of the monthly pivot and 61.8% retracement.

Technically AUD-NZD remains within a bearish trend which began with Moody’s threat to Australia credit in August. We cannot rule out another attempt to challenge the 1.30 handle whilst we remain below 1.0466 high. Although we expect it to trade higher tomorrow as RBA hold their rates steady once more.