Southern Energy Corp press release
Armistice Resources Corp. files technical report and announces intention to bring its McGarry Gold Project into production
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TORONTO, April 14 /CNW/ - Armistice Resources Corp. (TSX: AZ) ("Armistice") is pleased to announce the results from its technical report (the "Technical Report") for its McGarry Gold Project located in Virginiatown, Ontario (the "Property"), which was prepared under, and is compliant with, National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. On the basis of these results, management intends to move the McGarry project aggressively towards production.
In making the announcement Armistice President and CEO Todd J. Morgan noted that because of the extensive infrastructure in place "we are able to start work immediately." He noted this represents a "significant milestone toward full production allowing us to take advantage of the current gold cycle."
A preliminary assessment or scoping study was conducted by Python Mining Consultants ("Python") to determine the potential production between the 1250-foot and 2250-foot Levels. The scoping study also created a template for actual mining operations. Based on the study Python concluded that an operation starting at 350 tons-per-day and ramping up to 600 tons-per-day could give the mine 4.5 years of production between these levels.
An independent qualified person reported a NI 43-101 compliant mineral resource estimate in respect of the Property in 2004 as an Indicated Mineral Resource of 433,981 tons at a grade of 0.25 oz/t gold using a cut off grade of 0.10 oz/t gold above a depth of 2600 feet.
The Technical Report updates this mineral resource to include all the assay and geological data available as of 8 April 2009. The following table presents the estimated mineral resource. The summary of resources above and below the 2300 elevation is made to reflect the fact that the existing shaft and hoisting infrastructure services to the 2250 Level.
Undiluted Mineral Resource Estimate - April 8, 2009 Cut to 1.50 oz/t Uncut Mineral Tons Resource (short Grade Gold Grade Gold Category tons) (oz/t gold) (oz) (oz/t gold) (oz) Indicated Above 2300 elevation (all zones) 374,000 0.22 82,000 0.25 93,000 Below 2300 elevation (all zones) 118,000 0.25 30,000 0.26 30,000 Total Indicated (all zones) 492,000 0.23 112,000 0.25 123,000
Inferred Above 2300 elevation (all zones) 59,000 0.17 10,000 0.19 11,000 Below 2300 elevation (all zones) 113,000 0.16 19,000 0.16 19,000 Total Inferred (all zones) 172,000 0.17 29,000 0.17 30,000
Mineral resources estimated according to CIM definition standards (2005). A 0.10 oz/t gold cut-off grade was used with high-grade values uncapped and capped at 1.5 oz/t gold. A fixed specific gravity of 2.79 was used. Undiluted resources, all drill hole intercepts are calculated using a minimum horizontal width of 5 ft, using the grade of adjacent material, if assayed, or zero if not assayed. Gold grades determined using the polygonal method with polygons determined from interpretation on vertical cross sections and elevation plans. Maximum distance to the edge of a block from a drill hole or chip sample intercept of 50 ft has been applied. Maximum block size is 10,000 sq ft. A confidence level of +/-10% is estimated for the Indicated Mineral Resource and +/-25% for the Inferred Mineral Resource. Effective date of resource estimate is 8 April 2009. Qualified Person for the mineral resource estimate is Erik Andersen, P.Eng. (Armistice Resources Corp.) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues although the Qualified Person is not aware of any such issues.
Using assumptions, based in part on 12 months of actual development mining at McGarry site, Armistice is conservatively expecting metallurgical recoveries of 85% along with gold selling at $C800 per ounce and, after a year of production, revenues from custom milling would produce sufficient income to cover ongoing operating costs. Python's calculations are in an estimated 25 per cent accuracy range.
A detailed sampling programme has given support to a conclusion that gold zone continuity of 100 feet along strike and 200 feet along plunge while maintaining minimum mining widths of five feet can reasonably be expected.
Once a successful mining operation is established with this programme, the next phase will be to expand the project towards surface and to depths in the 5000- to 6000-foot range. In particular, there is excellent support from drill intersections that similar gold zones exist down to these elevations. The potential below these elevations remains to be explored. The estimated cost of the first 12 months of the programme outlined in the complete version of the report is $C12 million +/-25%, with $C15 million at the top cost range.
The full Technical Report can be viewed on SEDAR at http://www.sedar.com and the Armistice website at http://www.armistice.ca
The qualified person who signed the Technical Report is Erik Andersen, P.Eng., Vice President and COO of Armistice. Mr. Andersen has reviewed and approved this release.
Armistice is a Canadian exploration company that owns the McGarry project in North-eastern Ontario located on the prolific Larder Lake break. The McGarry project is an advanced exploration underground gold project consisting of 33 contiguous patented mining claims including 3 licences of occupation totaling 484 hectares which adjoins the former producing Kerr Addison gold mine which produced in excess of 11 million ounces of gold.
ARMISTICE RESOURCES CORP.
"Todd J. Morgan"
Todd J. Morgan President, CEO and Chairman of the Board
CAUTIONARY STATEMENT:
This news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Armistice, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Armistice's expectations are exploration risks detailed from time to time in the filings made by Armistice with securities regulators.