Monarques Resources fka MQR

[Dobie Lama]

Monarques Resources research and analysis

Date: 8 November 2011
Contributed by eResearch

By Bob Weir



Monarques Resources Inc. is a junior exploration company with seven properties in northern Quebec.


The flagship Nisk property consists of 190 claims over 9,850 hectares, and hosts copper, nickel, the platinum group, and gold. The Nisk-1 deposit has a 2009 NI 43-101 compliant resource estimate, comprising 2.04 million tonnes in Measured + Indicated (M+I) resources, containing 47.4 Mlb of Ni and 34.6 Mlb of Cu; and 1.05 million tonnes in Inferred resources, containing 18.8 Mlb of Ni and 7.4 Mlb of Cu.


In June 2011, Monarques held its IPO, during which it raised $6 million. The IPO was a pre-condition for Monarques’ spin-off from Nemaska Exploration Inc. Currently, Nemaska holds 47% of Monarques, IPO investors hold 41%, and Nemaska’s shareholders own 12%.


Since July 2011, the Company has been actively pursuing its exploration program. The biggest milestone to achieve in the near future is completion of the drilling on the key Nisk property where new anomalies have been recently discovered.


Monarques has an extensive exploration program for which it has allocated $4 million, using funds from the IPO. The program is underway.


The Company faces certain challenges. It has been publicly traded only since June 2011, and needs time to gain investor attention and confidence. Six out of seven of its properties lack resource estimates, and the timing for such resource estimates at the moment is unclear.


We give Monarques Resources a Speculative Buy rating, and have a 12 months Target Price of $0.40. The shares are suitable only for risk-tolerant investors.






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