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Monarques Resources research and analysis

Contributed by eResearch

By Bob Weir

Monarques has published results from the 2011 exploration program on its 100%-owned Bourier property in the Lower James Bay region of Quebec.

The program included geological mapping, prospecting, soil sampling and stripping on the northeastern part of the property, as well as drilling of targets generated by geological mapping and the helicopter-borne mag/EM survey on the southwestern part of the property.

A total of 2,214 metres of drilling was conducted, and 459 samples were sent for assay. The next program will involve testing three new soil anomalies and other showings. Prospecting and geological surveying is expected to begin in May 2012, with the results of the program defining new drill targets in 2012.

Highlights of the 2011 Bourier Drilling Program

A massive sulphide mineralized zone, identified in previous exploration work, has been shown to be continuous over a distance of more than 25 kilometres.

15 diamond drill holes were drilled on the first 5 km at the southwest end of the zone, and all intercepted the mineralization over 5-10 metres in thickness.

Mineralization has been intercepted down to a vertical depth of 100 metres, and data interpretation indicates continuity of the mineralized horizon.

The descriptive data and key lab results demonstrate a zinc and silver mineralized zone of SedEx type, an encouraging factor.

THE COMPANY

Monarques Resources Inc., which was spun out of Nemaska Exploration Inc. in 2011, is exploring for base metals, PGE and precious metals in the Lower James Bay Region of Quebec.

Monarques’ IPO was completed in June 2011, and the Company purchased all rights, titles and interests owned by Nemaska in the Lac Arques, Lac des Montagnes and Lac Levac properties for a purchase price of $7,500,000 by issuing to Nemaska, as of June 10, 2011, an aggregate 18,750,000 common shares at a price of $0.40 per common share.

Post-IPO, Nemaska became a 47% controlling shareholder of Monarques, with Nemaska shareholders owning around 12% of Monarques. Shares of Monarques began trading on the TSX Venture Exchange on June 14, 2011 (symbol MQR).

The claims acquired by Monarques were divided into seven properties, all 100%-owned, and underlain by the polymetallic Lac des Montagnes greenstone belt:

(1) Bourier (316 claims, 14,506+ hectares);

(2) Arques (139 claims, 6,904 hectares);

(3) Lemare (197 claims, 8,823+ hectares);

(4) Nisk (190 claims, 9,850 hectares);

(5) Duval (58 claims in two blocks, 3,074 hectares);

(6) Valiquette (170 claims, 7,579+ hectares); and

(7) Caument (90 claims, 4,134+ hectares).

Monarques’ flagship Nisk property has an 2009 NI 43-101 compliant resource estimate of 2.04 million tonnes in Measured + Indicated (M+I) resources containing 47.4 Mlb of Ni and 24.6 Mlb of Cu; and 1.05 million tonnes in Inferred resources containing 18.8 Mlb of Ni and 7.4 Mlb of Cu.

RECOMMENDATION AND TARGET PRICE

We initiated coverage of Monarques Resources Inc.on November 1, 2011 with a Speculative Buy rating and a Target Price of $0.40 per share, and these remain intact. The shares are suitable only for risk-tolerant investors.

eResearch Analysts:
Yuri Belinsky, B.A., M.A.
Bob Weir, B.Sc., B. Comm, CFA