TORONTO, Nov. 28, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ), operator of the McGarry gold mine in Ontario's Kirkland Lake area, today reported that development work in the mine has identified higher-grade stoping areas. The indicated stope grade is 24% higher than expected in the September 2011 NI 43-101-compliant report.
"For the past several months, our work at the McGarry Mine has had a dual focus," said Todd J. Morgan, president and chief executive officer. "As we have been mining new ore for future processing, we also have been carrying out an extensive development and exploration diamond-drilling program in the mine. The intent of this drilling program is to identify and open up the stoping areas that will enable Armistice to meet our target in 2013 of 350-to-400 tons per day of production.
"This program has been successful and we are very pleased to report that the assay grade data and strike extent of the gold mineralization in the 325N Area on the 2250 Level of the McGarry Mine has met or exceeded expectations. We will be deploying the funds from our recently completed financing to continue this development and exploration work," Mr. Morgan said.
The results from the sampling in the sill drifts are summarized in the following table:
| Undiluted | Diluted 35% @ 0.02 oz/t |
||||||||||||||
| Stope Sill | Length ft ( m) |
Average Width ft ( m) |
Average Grade Uncut oz/t oz/t (g/t) |
Average Grade Cut to 1.5 oz/t oz/t (g/t) |
Average Grade Cut to 1.5 oz/t oz/t ( g/t) |
||||||||||
| 325N - 1 | 320 ( 98) | 5.00 (1.52) | 0.348 (11.9) | 0.316 (10.8) | 0.239 ( 8.2) | ||||||||||
| 325N - 1.5 | 85 ( 26) | 4.38 (1.33) | 0.175 ( 6.0) | 0.175 ( 6.0) | 0.135 ( 4.6) | ||||||||||
| 325N - 2 | 195 ( 59) | 4.73 (1.44) | 0.390 (13.8) | 0.313 (10.7) | 0.237 ( 8.1) | ||||||||||
| Total | 600 (183) | 4.82 (1.47) | 0.339 (11.6) | 0.297 (10.2) | 0.225 ( 7.7) | ||||||||||
The 325N mineralized area, centered about 1,700 feet west of the shaft, is the current focus for the development and production of ore. Data from an intensive program of short-hole diamond drilling has been used to guide the establishment of sill drifts about 30 feet below the main 2250 Level haulage drift.
Armistice is particularly pleased that a definitive structural control for the gold mineralization is recognizable as a weak slip with alteration on one or both sides in which the gold is concentrated and detectible in the mining sequence. The width of the associated gold mineralization varies from very narrow to seven feet in a pinch-and-swell pattern. It is very encouraging that the structure is traceable over the entire length of the sill drifts in each of the three mined zones, Zones #1, #1.5, and #2 (See Figures 1 and 3).
"On November 15, Armistice announced that we had completed the acquisition from of the mineral rights on 18 mining claims, totalling 627 acres (the Barber-Larder Property), located contiguous to the western boundary of the McGarry mine (See Figure 2). We regard this as a transaction that should create value for Armistice's shareholders.
"Indeed, the results of our ongoing diamond drill program in the McGarry Mine indicate that the ore structure at similar grades remains open and trends west towards the recently acquired Barber-Larder property. Sill drifts in the ore have been extended a total of 600 feet to date with an additional 500 foot advance currently in progress," Mr. Morgan said.
"With our ownership of the McGarry Mine property, the Barber-Larder mining claims, and the Kerr-Addison property, Armistice now has established a very large footprint (See Figure 4) of properties on the prolific Larder Lake-Cadillac Break," Mr. Morgan noted.
The sill drift faces are chip sampled after each round to determine the expected grade from subsequent production stopes. The grades indicated by the face sampling in the sill drifts meet or exceed expectations. The average undiluted grade without top cutting is 0.34 ounces gold per ton over an average width of 4.8 feet over the 600 feet of sill drifting.
This compares with the overall average of 0.25 ounces gold per ton for the same parameters for the Indicated Resource Estimate as reported in the Mineral Resource Estimate dated September 16, 2011 of the NI 43-101-compliant technical report "Preliminary Economic Assessment and Mineral Resource Estimate, McGarry Project, McGarry Township (Virginiatown), Ontario" by Martin Drennan, P.Eng dated April 8, 2011 and amended September 30, 2011. Based on the results of the 2008 test mining reported on in this technical report, the dilution is expected to be 35%. Therefore, the grade expected to be delivered for processing is 0.23 ounces of gold per ton from production stopes in the 325N area.
The 325N areas reported on in this release are included in the Mineral Resource Estimate referenced above. For a more direct comparison, the estimated average undiluted grade without top cutting for the combined 325N and 400N Zones included in the Mineral Resource Estimate is 0.274 oz/t, compared with the grade of 0.34 oz/t reported on here, a 24% increase for this area. The three 325N Zones reported on in this release are within the western part of the combined 325N and 400N Zones in the Mineral Resource Estimate. A revised Mineral Resource Estimate has not been made since resource definition work is ongoing and not considered likely to materially alter the published global Mineral Resource Estimate at this time based on current information.
Sill drifts form the initial mining along the strike of the gold mineralization. Information obtained from the sill drifting is used to define the limits of the gold zones for production mining. The sill drifts will by their nature often have widths greater than are expected from the stopes that will be mined above and below them since they are established to define the gold zones in detail. Generally, waste dilution due to the greater widths of sill drifts will account for a reduction in grade in these areas. Production stopes have been started in about half of the sill drifting with good success using both uppers and breasting techniques.
The location of the 325N Area and the sill drifts indicated above are shown in the attached figures. Note that ounces per ton and oz/t refers to Troy ounces per short ton and distances on the figures are in feet. Also note that g/t refers to grams per metric tonne and m refers to metres.
Quality Control and Quality Assurance Process
Armistice maintains procedures for Quality Control and Quality Assurance. These procedures include sawing the core in half and retaining half for archive reference. The other half is assayed using standard fire assay techniques with AA finish. For every 20 samples submitted for assay, one sample is quarter sawn and each quarter is submitted to separate labs for independent analysis. For each 20 samples submitted, one blank is also submitted for control. All samples are sent to PolyMet Labs, Cobalt, Ontario, and Swastika Labs, Swastika, Ontario, both being recognized independent assay laboratories.
Qualified Person
Erik Andersen, P.Eng., vice-president and chief operating officer of Armistice Resources and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved this news release.
About Armistice Resources Corp.
Armistice Resources, a Canadian-based exploration and development company, is the operator of the McGarry gold mine in Ontario's Kirkland Lake area. The McGarry Mine is located in Virginiatown on the prolific Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that has produced 95 million ounces of gold.
The McGarry Mine is adjacent to the Kerr-Addison Gold Mine property that produced from 1938 to 1996 more than 11 million ounces of gold. Armistice has signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property. The McGarry Mine consists of 33 contiguous patented mining claims, including three licenses of occupation, totaling 484 hectares. The McGarry Mine is fully permitted and all equipment and systems at the site have been brought up to standards, including its installed mining plant. Armistice also owns the mineral rights for 18 mining claims totaling 627 acres (the Barber-Larder Property) located contiguous to the western boundary of the McGarry Mine. Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and has 221,528,971 common shares issued and outstanding. To find out more about Armistice Resources, please visit the company's website at www.armistice.ca.
Forward-Looking Statements
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Armistice Resources' business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Armistice Resources assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
PDF available at: http://stream1.newswire.ca/media/2012/11/28/20121128_C4162_DOC_EN_21307.pdf
SOURCE: Armistice Resources Corp.
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: [email protected]
(705) 567-4567
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: [email protected]
416-594-1600
416-518-8479 (cell)
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