Lafleur Minerals Positions for Near-Term Gold Production in Quebec's Abitibi Belt

• Lafleur Minerals acquired the Swanson gold project (200,000 ounces) and Beacon gold mill from Monarch Mining's bankruptcy proceedings in 2024
• Company plans near-term production through bulk sampling at Swanson (80-100,000 tons) with ore sorting technology to improve efficiency
• Beacon mill was recently refurbished by Monarch ($20M CAD investment) and requires $5-6M to restart operations at 750-1,000 tons per day capacity
• Swanson project sits on existing mining lease, significantly reducing permitting timeline compared to greenfield developments
• Strategy focuses on regional consolidation, targeting over 1 million ounces across multiple deposits while offering custom milling services

Lafleur Minerals Incorporated represents an emerging opportunity in Quebec's prolific Abitibi gold belt, where CEO Paul Ténière is executing a strategic plan to become a near-term gold producer through the integration of recently acquired mining assets. The company's approach centers on the Swanson gold project and the Beacon gold mill, both acquired from Monarch Mining's bankruptcy proceedings in 2024, positioning Lafleur to capitalize on higher gold prices and regional consolidation opportunities.

The Swanson Gold Project: Foundation Asset

The Swanson gold project, located in the Abitibi gold belt near Val-d'Or, Quebec, serves as Lafleur's cornerstone asset. Originally acquired through Monarch Mining's bankruptcy proceedings, the project has evolved from a 6,000-hectare property to over 180 square kilometers through strategic option agreements with neighboring companies. This regional consolidation approach reflects management's belief in the area's broader potential.

The deposit contains approximately 200,000 ounces of gold, with 125,000 ounces in the indicated category, primarily suitable for open-pit mining. Historical drilling totaling over 35,000 meters provides substantial geological understanding, with Monarch's additional 10,000 meters of drilling incorporated into updated resource estimates. The geological setting represents typical Archean orogenic gold mineralization, characterized by structurally controlled deposits within altered ultramafic rocks.

"What's interesting is they continue at depth and the grades are fairly continuous across these zones. There are variations, but generally speaking, we're not seeing any major tight folding within Swanson." 

Geological Setting and Exploration Strategy

Swanson sits on the northern structural break, approximately 50-60 kilometers north of Val-d'Or, within a classic orogenic gold belt environment. The mineralization occurs within altered ultramafic rocks, characterized by fuchsite alteration that serves as a key exploration indicator. Unlike narrow vein-hosted deposits common in the region, Swanson's gold occurs in a more disseminated style within altered zones, making it amenable to bulk mining methods.

The company has identified 50 targets across the expanded property, implementing systematic exploration including high-resolution geophysics, ground surveys, and targeted drilling programs. Current drilling focuses on four priority areas: Swanson, Bartec, and Jolin targets, with a planned 5,000-7,000 meter program designed to test extensions and define additional resources.

The Beacon Mill: Strategic Processing Infrastructure

Lafleur's acquisition of the Beacon gold mill represents a critical strategic advantage, providing immediate processing capability without the typical years-long permitting process associated with new mill construction. Monarch Mining invested over $20 million CAD in complete mill refurbishment before their bankruptcy, leaving Lafleur with a modern, well-maintained facility.

The mill's capacity ranges from 750 to 1,000 tons per day, with potential expansion capabilities to 2,000-5,000 tons per day given available footprint and infrastructure. Recent engineering assessments confirm the mill's excellent condition, with restart costs estimated at $5-6 million CAD, including minor repairs to the tailings storage facility.

"The good news is that the mill had been completely refurbished by Monarch; they had spent over $20 million Canadian to refurbish that mill."

Interview with Paul Ténière, CEO of Lafleur Minerals

Near-Term Production Strategy

Lafleur's production strategy centers on bulk sampling at Swanson, targeting 80,000-100,000 tons for initial processing at Beacon. This approach serves multiple objectives: metallurgical testing, revenue generation, and operational experience while maintaining capital efficiency. The company plans to implement ore sorting technology to enhance grade and reduce transportation costs, reflecting industry best practices for remote processing scenarios.

The existing mining lease at Swanson significantly accelerates the permitting timeline, as the company inherited approvals originally granted to Agnico Eagle in 2009. Updated mine plans and environmental closure plans represent the primary regulatory requirements, avoiding the multi-year permitting processes typical of new projects.

Regional Consolidation and Growth Strategy

Beyond Swanson, Lafleur targets regional resource growth through systematic exploration of the Bartec and Jolin deposits, which contain historical resources requiring verification drilling to current standards. The company's goal of exceeding one million ounces across the consolidated property reflects the scale potential of the regional approach.

"Our aim is to get over a million ounces within just Swanson project itself. There's also opportunities to acquire other projects in the area."

The Beacon mill's strategic location and capabilities position Lafleur to capitalize on custom milling opportunities within the Val-d'Or region. Limited available processing capacity creates demand from mid-tier companies seeking alternatives to major producer facilities or lengthy permitting processes for their own mills. Custom milling arrangements typically generate 3-4% of revenue, providing additional cash flow to support operations and exploration.

The company has received preliminary interest from multiple regional operators, though formal agreements await the mill's operational restart. This custom milling potential represents both immediate revenue diversification and longer-term strategic positioning within Quebec's mining ecosystem.

Economic Context and Market Positioning

Lafleur's strategy reflects the changing economics of smaller gold deposits under current market conditions. When the company acquired Swanson, gold traded at $1,800 per ounce, compared to current levels above $3,300. This price appreciation transforms previously sub-economic deposits into viable production targets, particularly for operations with existing infrastructure and streamlined permitting.

"When you get into higher gold prices, you're seeing a lot of these smaller deposits that are sub 500,000 tons that are becoming more viable because of the fact that they're much more economic with gold prices being the way they are." 

The Investment Thesis for Lafleur Minerals

• Near-term production capability: Existing mining lease and refurbished mill infrastructure enable faster path to production compared to greenfield developments, with bulk sampling planned for 2025
• Strategic asset integration: Combination of advanced-stage deposit and modern processing facility creates vertical integration advantages and operational synergies
• Experienced management team: Leadership with 25+ years across complete mining cycle, including corporate finance experience from Toronto Stock Exchange
• Regional consolidation opportunity: 180+ square kilometer land package with multiple targets offers significant resource growth potential beyond current 200,000-ounce base
• Custom milling revenue diversification: Limited regional processing capacity creates additional revenue streams while core projects develop
• Capital efficiency model: Bulk sampling approach generates early cash flow to self-fund exploration and development activities, reducing dilutionary capital requirements
• Market timing advantage: Higher gold prices improve economics of smaller deposits, while industry consolidation creates acquisition opportunities
• Infrastructure advantages: Proximity to Val-d'Or provides access to skilled workforce, suppliers, and transportation networks essential for mining operations

The current gold market environment has created unprecedented opportunities for small-scale, near-term production projects that were previously considered sub-economic. Rising gold prices, combined with extended permitting timelines for new projects, have shifted investor focus toward assets with existing infrastructure and streamlined development pathways. This trend particularly benefits companies operating in established mining districts with proven geology and available processing capacity.

Lafleur Minerals exemplifies this macro opportunity through its strategic positioning in Quebec's Abitibi belt, where the combination of acquired infrastructure and regional consolidation potential creates multiple value creation pathways. The company's approach addresses key investor concerns around capital intensity and development timelines while capitalizing on the structural supply constraints affecting global gold production. As larger producers focus on tier-one assets, opportunities emerge for smaller operators to efficiently develop overlooked deposits using modern technology and favorable market conditions.