Southern Energy Corp press release
Armistice Resources Updates McGarry Gold Mining Pre-Production and Kerr-Addison Exploration
TSXV - TSX Venture Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Jul. 26, 2011 (Canada NewsWire Group) --
Steady ramping up of operations continues toward planned start up of gold production in the 2011 fourth quarter Exploration program continues with a total of 16 holes drilled on Kerr-Addison property and second diamond drilling rig now operating at McGarry site Company expects to release further assay result during August
TORONTO, July 26, 2011 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is on target to begin gold production in the 2011 fourth quarter from its McGarry Mine in the Kirkland Lake area of northeastern Ontario, today issued an update report on its pre-production operations at the mine and its drilling exploration program on the adjacent Kerr-Addison property.
"Since our most-recent progress report, which we issued a month ago, Armistice has steadily continued to ramp up our operations at the McGarry Mine," reported Todd J. Morgan, President and Chief Executive Officer. "With the price of gold having climbed to around the $1,600 level, this is a really exciting time to be within just a few months of becoming a producer. As well, we also are continuing to carry out our drilling exploration program on the Kerr-Addison property and have also initiated drilling on the McGarry Mine property."
Following are some of the highlights of the pre-production progress at the McGarry Mine made since the company's previous progress report.
The company made advances on extending four active headings in the McGarry Mine. Armistice is actively working to add additional miners to increase its crews in order to accelerate the pace of this activity. Armistice took delivery of the previously ordered refurbished Alimak Raise Climber and is preparing to set it up. At the start of July, Armistice went to two shifts of mining crews. After a slight delay from the supplier, Armistice received in early July the underground diamond drill rig that it had ordered. The company has proceeded with site preparation for the drill on the 2250 level. Normal hoisting activity began in early June following the re-installation of the skip. This permitted clearing of much of the waste backlog. Fabrication began of a new grizzly (screen) for the 2250 level ore loading pocket Hiring continued with a net increase of eight personnel in June, including Alimak miners, diamond drillers, and miners. The company is continuing to add people in July, particularly to increase its underground crews.
Drilling Exploration Program
Through the beginning of July, Armistice had completed the drilling of 16 holes on the Kerr-Addison property and one hole on the McGarry site as it extended its exploration program with the addition of a second diamond drilling rig for near-surface drill testing. Assaying is going well and Armistice expects to be able to disclose further results of its drilling program during August 2011.
As previously announced, Armistice is carrying out a $2.5 million surface diamond-drilling program on its Kerr-Addison and McGarry properties. The McGarry surface program is testing the upward continuation of the gold zones defined below 1,250 feet, which are part of the current mining plan. The area between 1,250 below surface and surface has not been well explored in the past and Armistice's 2009 drilling program confirmed the potential right to surface.
The Kerr-Addison Gold Mine property, which historically produced more than 11 million ounces of gold, lies adjacent to Armistice's McGarry Mine project. On December 23, 2010, Armistice announced that it had signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property.
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, expects to begin gold production in the 2011 fourth quarter from its McGarry Mine in the Kirkland Lake area of northeastern Ontario. 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 that has produced 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 Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has 104,924,771 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; the degree to which a pre-feasibility study gives sufficient grounds for classifying the indicated mineral resources as probable reserves; 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.
Investor and Media Relations Richard W. Wertheim Wertheim + Company Inc. Email:wertheim@wertheim.ca 416-594-1600 ext. 223 416-518-8479 (cell)