Southern Energy Corp press release
Armistice Resources Confirms McGarry Gold Mine on Target to Begin Production in 2011; Drilling Exploration Program Continues on Kerr-Addison and McGarry Properties
TSXV - TSX Venture Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Pre-production activities at McGarry gold mine continuing to meet planned production in the 2011 fourth quarter Drilling exploration program continues with 19 holes drilled on Kerr-Addison and three on the McGarry properties by end of July Further assay results to be announced shortly
TORONTO, Aug. 26, 2011 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is on target to begin production in the 2011 fourth quarter from its McGarry gold mine in the Kirkland Lake area of northeastern Ontario, today issued an update report on its pre-production operations at the mine.
"We are continuing to make good progress in the pre-production activities at the McGarry Mine toward meeting our goal of starting production in this year's fourth quarter," reported Todd J. Morgan, President and Chief Executive Officer.
"We're aggressively recruiting personnel to build our workforce at the mine, even though this is challenging as there is a lot of competition to hire good people throughout Canada's very healthy mining industry. Nevertheless, we are finding people who share our excitement of being on the threshold of starting production in an environment where the price of gold was recently setting daily new highs," Mr. Morgan said.
"Our drilling exploration program on the Kerr-Addison and McGarry properties also is progressing well with a total of 22 holes drilled through the end of July, including the first three on the McGarry site. On June 22, 2011, we issued the first set of assay results, based on seven holes drilled. We currently are completing our analysis of assay results from additional holes and expect to announce these shortly within the next week," said Erik Andersen, P.Eng., Vice-President and Chief Operating Officer.
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.
Following are some of the highlights of the pre-production progress at the McGarry Mine made during July.
The company is pushing forward on five active underground headings in the McGarry Mine. Accelerating the rate of the development advance is a major focus going forward. The active headings include a waste drift at the west end of the mine that will be used for stope definition diamond drilling; a ramp that will provide access for silling the first stopes as initially defined by drilling in late 2009 in the 325N Zone; east and west waste drifts from the 600W cross-cut that, when completed, will provide 1,000 feet of strike access for detailed diamond drilling along the prospective geology; and access drifts for Raise Climber set ups. Preparation to enable the start of development work on the 2050 Level has been started including the ordering of tracked mining equipment. The company completed assembling and moving a new underground diamond drill rig into position on the 2250 Level where it is testing the 100N Zone. In the 1990s, a diamond drill intersection grading over 9 oz per ton over 1.2 feet was obtained near the current drill target. This intersection was not confirmed by drifting underground in the 1990s. The current drilling is testing a revised interpretation of the strike of the 100N Zone. No assays results are currently available. Following the drilling on the 100N Zone, the underground drill will be moved to the west end of the active workings on the 2250 Level for stope definition drilling on the 325N and 260N Zones. Rebuild of the refurbished Alimak Raise Climber was completed, readying it for installation on the 2250 Level where the mined excavations for the first two set ups is nearly complete. The Raise Climber will be used to make an ore pass to the 2050 Level and a primary ventilation raise/secondary access to join the existing system at the 1250 Level. Fabrication of a new grizzly for a refurbished ore loading pocket on the 2250 Level is progressing very well and should be ready in time when increased ore and waste handling will be required. A total of some 2,000 tons of waste were hoisted from the mine during July. Hiring continued with a net increase of six personnel in July, bringing the total to 42 Armistice employees on the properties.
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 production in the 2011 fourth quarter from its McGarry gold 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 MDA, 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.