Probe Gold Acquires Beaufor and McKenzie Break Properties

Mar 5 2024Reviewed by Lexie Corner The Novador Development Project…

The Novador Development Project is expanding its boundaries with the acquisition of the Beaufor Property, which currently holds a substantial gold resource.

Probe Gold Acquires Beaufor and McKenzie Break Properties
Beaufor Deposit Source: Monarch NI 43-101Technical Report – July 2021; McKenzie Break Deposit Source: Monarch NI 43-101Technical Report – October 2021. Figure 1 – Probe Gold Val-d’Or properties with the McKenzie Break and Beaufor acquisition. Image Credit: Probe Gold
  • With a high-grade, measured, and indicated gold resource of 219,00 ounces of gold at 5.3 g/t as well as an inferred mineral resource of 122,500 ounces of gold at 4.7 g/t, the Beaufort Property is a valuable addition to the company’s portfolio.
  • Probe will now have ownership of the entire Courvan Gold Trend, encompassing the Courvan, Senore, and Beaufor deposits. This trend offers significant exploration potential, which will be the main focus in the coming years.
  • The McKenzie Break Property, located near the Novador Project, boasts a higher-grade indicated gold resource of 146,000 ounces at 3.2 g/t, along with an inferred mineral resource of 250,600 ounces at 3.1 g/t. This property also presents promising exploration opportunities, and the technical team plans to initiate exploration activities alongside the Beaufor programs. 
  • These acquisitions align with the company’s ongoing strategy of expanding the Novador Development Project.

Probe Gold Inc. has recently finalized a purchase agreement with Monarch Mining Corporation to acquire a 100 % interest in the McKenzie Break and Beaufor properties. This acquisition will expand Probe’s land package next to the Novador Project and increase its landholdings in Val-d’Or to 685 km2. The transaction is expected to close in the upcoming weeks pending various approvals, including those from the Superior Court of Quebec, the Toronto Stock Exchange, and other closing conditions.

The tuck-in acquisition of the Beaufor and McKenzie Break properties is a strategic fit with our current development model in Val-d’Or. It will add 365,200 measured and indicated and 373,100 inferred ounces of higher-grade gold to our current resource inventory and will provide an additional 85 km2 of highly prospective and under-explored ground for further expansion and discovery. Beaufor, which has produced over 1.2 million ounces of gold in the past, was the missing piece in our Novador claim fabric and will complete the consolidation of our Courvan trend.

David Palmer, President and Chief Executive Officer, Probe Gold Inc.

Palmer added, “The McKenzie Break property is within trucking distance of Novador and hosts higher-grade gold resources with tremendous exploration upside. We plan to commence exploration on both properties immediately after closing the acquisition, with a focus on expanding resources and identifying regional targets. Thanks to our strong balance sheet, we can proceed to finalize the acquisitions. This timing aligns well with the conclusion of our winter drilling program at Novador, allowing us to shift our focus to regional exploration at Novador, Croinor, and our new properties.”

Transaction Details

In accordance with the Agreement, the Company is set to obtain full ownership of the McKenzie Break and Beaufor properties, with payment to be made through a mix of cash and common shares of the Company.

The completion of the deal is contingent upon obtaining all required court, regulatory, and other approvals, such as the approval of the Superior Court of Quebec in Monarch’s Companies’ Creditors Arrangement Act proceedings, approval from the TSX, and meeting other closing conditions.

About the Beaufor Property

The Beaufor property is situated next to the Company’s Novador project and comprises 23 claims covering 6.9 km2. The Property contains a current measured and indicated resource of 219,200 ounces of gold at 5.3 g/t and an inferred mineral resource of 122,500 ounces of gold at 4.7 g/t.

It is conveniently accessible via Highway 117 and a gravel road, approximately 25 km east of Val-d’Or. The property holds surface mining rights and infrastructure, including underground developments descending to 900 m below the surface.

About the McKenzie Break Property

The Company’s Novador Project is located just 20 km south of the high-quality gold deposit on the property. This property boasts a significant gold resource, with an indicated gold resource of 146,000 ounces at an average grade of 3.2 g/t and an inferred mineral resource of 250,600 ounces at an average grade of 3.1 g/t.

Covering a vast area of 78.5 km2, the property comprises 183 mineral claims and features surface and underground infrastructure. A ramp that descends to a depth of 80 m below the surface. The property remains easily accessible throughout the year via Route 397 and a gravel road.


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