Lafleur Minerals Advances Integrated Swanson-Beacon Development with Year-End PEA Target

• Lafleur Minerals is advancing a preliminary economic assessment for the Swanson project integrated with the 100%-owned Beacon Gold Mill, with results expected in December 2025
• The company plans to restart the Beacon Gold Mill (750 tons per day capacity) within 12 months, utilizing existing infrastructure that was operational until 18 months ago
• Multiple parallel initiatives include resource updates, twin drilling at Swanson, metallurgical testing, ore sorting evaluation with SRC, and mill maintenance preparations
• Swanson deposit sits on an existing mining lease 45-50km from Beacon, enabling faster production timeline compared to greenfield projects, with detailed contractor quotes and historical mine plans already secured
• Underground resource potential at Swanson, possible mill expansion to 3,000 tons per day, and custom milling opportunities for regional deposits provide multiple growth pathways

Lafleur Minerals is positioning itself for near-term gold production through the strategic integration of its Swanson deposit with the fully-owned Beacon Gold Mill in Quebec. In a detailed discussion, CEO Paul Ténière outlined the company's comprehensive development plan, which leverages existing infrastructure and historical data to accelerate the path to production. With a preliminary economic assessment (PEA) targeted for completion by December 2025 and mill restart planned within 12 months, Lafleur is advancing a relatively de-risked development opportunity in an established mining jurisdiction.

The company's approach differs from typical early-stage developers by utilizing the Beacon Gold Mill, a facility that operated until approximately 18 months ago under previous ownership by Monarch Mining. This existing infrastructure, combined with Swanson's location on a permitted mining lease, creates a potentially accelerated timeline to production that circumvents many of the typical permitting and construction challenges facing greenfield projects.

Advanced Economic Assessment Approaching Completion

The preliminary economic assessment under development represents a more detailed study than the classification might suggest. Ténière emphasized that while the study will be labeled a PEA for NI 43-101 compliance purposes, the level of detail approaches that of a prefeasibility study. 

"It's kind of misleading in a way to call it a PEA. We're calling it a PEA level only because really we're moving into a PFS level. It'll be a PEA strictly for NA 43-101 purposes."

The scope of work includes comprehensive geological, metallurgical, and engineering assessments being conducted by ERM consultants. Key components include pit design for the Swanson deposit, integration planning with the Beacon mill processing capabilities, ore sorting evaluation through SRC in Saskatchewan, metallurgical testing of both historical and current drill core, and a mineral resource update incorporating twin holes and infill drilling.

Ténière noted that the company has already completed more than half of a dozen drill holes at Swanson, with assay results expected within weeks. This drilling program serves dual purposes: verifying historical drilling results and providing infill data to upgrade resource confidence. The integration of these fresh results with the extensive historical database should provide a robust foundation for the economic assessment.

Beacon Mill Restart Strategy

The Beacon Gold Mill represents a significant asset with a nameplate capacity of 750 tons per day. The facility's recent operational history provides Lafleur with detailed cost and performance data that many development companies lack. 

"We know the production history of Beacon and up until recently. We've done full assessments of the mill. We know how much it's going to cost to restart it and to do maintenance on the mill.”

The restart strategy involves parallel workstreams operating concurrently with the PEA development. A dedicated team of process engineers, metallurgical engineers, and mechanical and electrical specialists is already mobilized at the Beacon site. The initial phase focuses on maintenance and repairs estimated at $2-3 million initially, potentially reaching $5-6 million for full readiness. This includes work on the tailings storage facility, which requires repairs and geotechnical inspection before full production can commence.

A critical element of the restart plan involves processing approximately 5,000 tons of existing stockpile material on site. This test run will allow the team to validate equipment performance across the complete flowsheet, from crushing through the rod mill and ball mill to the Merrill-Crowe precipitation process. "We want to make sure everything is running. We know that there are certain items that need to be fixed," Ténière explained, noting this operational validation will occur before Swanson material arrives in early 2026.

Swanson Deposit Development Plan

The Swanson deposit benefits from its location on an existing mining lease, which significantly streamlines the permitting pathway compared to new mining projects. Historical mine plans developed by Agnico Eagle approximately 15 years ago provide a foundation that Lafleur is updating based on additional drilling data. The updated pit design will be larger than the historical version, reflecting the expanded understanding of the mineralized zone.

The initial development phase envisions an 80,000-100,000 ton bulk sample that Ténière characterized as "essentially the first phase of mining at Swanson." This material will serve multiple purposes: validating metallurgical projections, testing ore sorting technologies, and generating early cash flow. The deposit sits approximately 45-50 kilometers from the Beacon mill, a distance that allows for cost-effective trucking using local contractors.

Lafleur has taken the unusual step for a PEA-stage project of obtaining firm quotes from multiple trucking contractors in the region. 

"We've actually reached out to several contractors to find out what the trucking cost is going to be from Swanson to Beacon. So we'll actually have firm costs for that."

The current resource update focuses on the open-pit scenario, which Ténière indicated could yield at least 500,000 tons. However, he revealed additional upside potential: 

"There's an underground resource in Swanson too... some of the previous operators that were drilling at Swanson they drilled deep holes and we're finding even higher grades down and actually mineralization does continue at depth."

Interview with Paul Ténière, CEO, Lafleur Minerals

Technical Validation Through Ore Sorting

Lafleur is evaluating ore sorting technology as a potential value enhancement strategy for the Swanson material. The company has engaged SRC in Saskatchewan to conduct preliminary testing using a historical drill core. The ore sorting evaluation will examine multiple technologies, including laser-based systems, XRT (X-ray transmission), and visual sorting methods to determine which approach best suits Swanson's specific mineralogical characteristics.

The ore sorting strategy could serve two purposes: increasing mining efficiency by rejecting waste material before trucking, and potentially beneficiating the head grade of material sent to the mill. If implemented, ore sorting equipment would likely be deployed as portable units at the Swanson site, with beneficiated material trucked to Beacon for processing.

Parallel to the ore sorting work, comprehensive metallurgical testing is underway at SGS laboratories. Importantly, this testing will utilise both historical core from the deposit center and fresh samples from the current drilling program. 

"These are things that you typically do in a more advanced study like a PFS or an FS." 

The metallurgical program will validate processing assumptions for the existing Beacon flowsheet, which currently employs Merrill-Crowe precipitation technology. ERM's metallurgical engineer assigned to the project has specific experience with Merrill-Crowe mills and previous familiarity with the Beacon facility, providing additional confidence in the technical assessments.

Economic Framework with Real-World Cost Data

One of the critical challenges for any economic assessment is establishing appropriate cost assumptions and metal price forecasts. Lafleur benefits from having actual operating cost data from Beacon's recent production history, though these figures require adjustment for current inflation levels. The company's approach involves reconciling 2022 operating data with current cost structures through direct engagement with service providers.

This detailed costing approach extends beyond typical PEA practices. Beyond the trucking quotes already mentioned, Lafleur has access to rail infrastructure near the project and detailed understanding of the mill's operating requirements. 

The gold price assumption for the PEA remains under discussion between Lafleur and ERM. With gold prices reaching unprecedented levels in 2025, establishing a conservative yet realistic price forecast presents challenges. Ténière suggested that Swanson's relatively short initial mine life might justify using a higher gold price than would be appropriate for a multi-decade operation. 

"We're talking about a short mine life for Swanson, specifically just the lease... we might be able to test a higher gold price because of that."

The capital requirements for the project appear relatively modest compared to greenfield developments. With the mill infrastructure largely in place and requiring primarily maintenance rather than reconstruction, the major capital items involve mining equipment at Swanson and any ore sorting infrastructure deployed. The company is evaluating whether to purchase equipment or utilize contractor services, with the latter approach likely for initial operations.

Streamlined Regulatory Timeline

The regulatory framework for Lafleur's development plan benefits significantly from Swanson's location on an existing mining lease. Rather than requiring a complete environmental assessment and new mining permit, the company needs to submit an updated mine plan and environmental closure plan to the Quebec government. 

"Really what we need to do is provide an updated mine plan for Swanson and the closure plan. So that can be done in a matter of months. That's not going to take years to do."

The PEA results will be presented to both the natural resources and environmental departments of the Quebec government to facilitate this permitting process. The concurrent work on the mill restart and Swanson development creates a timeline where regulatory approvals and technical readiness can proceed in parallel rather than sequentially.

Ténière indicated that once the PEA is completed in December 2025 and a production decision is made, the mill should be ready to receive ore in early 2026. This represents an unusually compressed timeline from economic assessment to production, reflecting the de-risked nature of utilising existing infrastructure on permitted land.

Multiple Growth Pathways Beyond Initial Production

Beyond the initial Swanson-Beacon integration, Lafleur has identified multiple expansion pathways. The underground potential at Swanson represents the most immediate opportunity. Historical drilling encountered mineralization at depth with grades that Ténière characterised as "even higher" than the open-pit resource. The company plans to utilise upcoming flow-through funding to drill deeper holes aimed at upgrading the current inferred underground resource and potentially expanding it.

Mill expansion represents another strategic option. Historical studies by Monarch examined increasing Beacon's capacity to 3,000 tons per day, which would require additions on the crushing circuit and installation of a carbon-in-leach (CIL) circuit to complement the existing Merrill-Crow system. A gravity circuit would also likely be incorporated in such an expansion. While the current PEA focuses on the existing 750 tons per day capacity, Ténière confirmed that expansion planning and cost estimates have been completed internally.

Custom milling for regional deposits provides a potential revenue stream that could utilise excess mill capacity. 

"We've been approached by companies that are interested in toll milling or custom milling and even processing their bulk samples too." 

With numerous companies in the region holding 15,000-20,000 ton bulk samples, Beacon's availability and relatively short lead times compared to larger facilities could create meaningful additional cash flow.

Project consolidation represents a longer-term strategic opportunity. Lafleur continues exploration drilling across the broader Swanson project area beyond the deposit included in the PEA. The company is also evaluating acquisition opportunities for additional deposits that could feed the Beacon mill once Swanson production is established.

The Investment Thesis for Lafleur Minerals

• Near-term production timeline: Path to gold production within 12 months utilizing existing permitted mining lease and fully-owned 750 tpd mill that operated until 18 months ago, avoiding typical multi-year development timelines
• Infrastructure advantage: Beacon Gold Mill provides detailed operating cost data, eliminating construction risk and providing unusually high certainty for a PEA-stage company; maintenance costs of $2-6M significantly below typical mill construction
• Advanced technical de-risking: PEA approaching PFS-level detail with firm contractor quotes, fresh metallurgical testing, ore sorting evaluation, and validation through processing 5,000 tons of existing stockpile before Swanson ore arrives
• Resource expansion potential: Underground mineralization at Swanson showing higher grades at depth provides growth beyond initial open-pit scenario; ongoing exploration drilling across broader project area with flow-through funding
• Multiple value enhancement pathways: Mill expansion potential to 3,000 tpd with documented plans and costs; custom milling revenue opportunities from regional bulk samples; ore sorting technology to potentially improve project economics
• Favorable gold price environment: Short initial mine life may justify higher gold price assumptions in economic studies; development timeline positions first production to capture current elevated gold prices
• Established jurisdiction advantages: Quebec mining region with extensive contractor availability providing competitive pricing; existing infrastructure and local expertise reduce operational risks
• Cash flow generation during ramp-up: Existing high and low-grade stockpiles enable gold production during mill restart phase, generating revenue before Swanson material arrives in early 2026

Macro Thematic Analysis

The gold sector is experiencing a fundamental revaluation driven by persistent inflation concerns, geopolitical uncertainty, and central bank accumulation, creating an advantageous environment for near-term producers. Gold prices have reached unprecedented levels in 2024-2025, with companies increasingly incorporating higher price assumptions into economic studies, a trend that reflects market expectations for sustained strength rather than cyclical peaks. Lafleur Minerals' development timeline positions the company to capture this pricing environment with production anticipated in early 2026.

The company's strategy of leveraging existing infrastructure rather than pursuing greenfield construction aligns with investor preferences for capital efficiency and accelerated returns. As Ténière noted regarding the unprecedented price environment: 

"We're seeing every PEA, every PFS that comes out across the world and especially here in Canada, we're seeing an increase of $100 here and $500 there per ounce. It's unprecedented."

This pricing dynamic, combined with Lafleur's relatively short path to production, creates an asymmetric opportunity where near-term operators can validate economics at elevated prices before long-term assumptions are tested.

TL;DR:

Lafleur Minerals is advancing an integrated development of the Swanson gold deposit and Beacon Gold Mill in Quebec with a PEA targeted for December 2025 and production expected within 12 months. The company benefits from owning fully-permitted infrastructure that operated until 18 months ago, enabling an unusually detailed and de-risked economic assessment incorporating firm contractor quotes, fresh metallurgical testing, and validation through existing stockpile processing. With expansion potential through underground resources at Swanson, possible mill capacity increases to 3,000 tpd, and custom milling opportunities, the project offers multiple value pathways beyond the initial 750 tpd open-pit scenario.

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