Southern Energy Corp press release
Armistice Resources Corp. releases sampling results and project update
TSXV - TSX Venture Exchange · Natural Gas · Natural Gas Liquids · Oil · Canada
Issued and Outstanding common shares: 51,264,184
TORONTO, April 7 /CNW/ - Armistice Resources Corp. (TSX: AZ) ("Armistice" or the "Corporation") is pleased to provide an update on sampling results and the progress of work being undertaken at its McGarry Gold Project at Virginiatown, Ontario.
Armistice has completed two access cross-cut underground headings on the 2250 Level. These are the first two workings to completely cross cut the east-west trending gold mineralized geological package. The cross-cuts are designated 1050W and 00W and extend 550 ft and 400 ft north, respectively, from the main 2250 east-west drift.
As each 9 ft. x 9 ft. heading advanced, extensive sampling was conducted on both the east and west walls. The sampling consisted of collecting rock chips over areas about 3 ft x 3 ft referred to as panels. Advance per blasted round was generally 6 ft. Therefore, 6 panel samples are typically taken (2 panels wide along the heading and 3 panels high) on the west wall and typically 4 on the east wall (2 panels wide and 2 high where ventilation ducting prevented collecting samples from the top panels).
1050W Cross-Cut
The 1050W Cross-cut is designed to access the eastern end of 3 zones as included in the resource estimate reported on in the 43-101 Report from 2004. (Definition drilling is ongoing that may lead to extending the zones to the east.) The zones to be accessed are the 260N, 325N and 400N zones. From previous diamond drilling, only the 260N Zone was expected to have grades in the 0.2 oz/t range at the initial intersection point with the 1050W cross-cut. Diamond drilling predicted that the 325N Zone would have only weak gold grades and the 400N Zone would be about 500 ft to the west.
Panel sample results from the 260N Zone, where it was intersected in the 1050W Cross-cut, returned better than expected results in 3 panels on the west wall and 4 panels on the east wall:
Round 66 West Wall South Panels Upper Panel 0.26 oz/t Middle Panel 0.35 oz/t Bottom Panel 0.14 oz/t West Wall Average of 3 panels (9 ft high x 3 ft wide) 0.25 oz/t
Round 65 East Wall South Panels Upper Panel 0.07 oz/t Middle Panel 0.21 oz/t Bottom Panel 0.57 oz/t North Panels Upper Panel 0.10 oz/t Middle Panel 0.09 oz/t Bottom Panel 0.33 oz/t East Wall Average of 6 panels (9 ft high x 6 ft wide) 0.23 oz/t Average of West and East Walls average 4.5 ft wide 0.24 oz/t
For comparison, Drill Hole 22-24 completed in 1997 intersected 0.14 oz/t over 4.4 ft at a corresponding location. Drill Hole 22-24 was not used in the 43-101 resource estimate.
The eastern end of the 325N Zone is expected about 50 to 100 west of the 1050W cross-cut. The 1998 Drill Hole 22-145 intersected gold mineralization where it was actually intersected in the cross-cut (0.06 oz/t over 3.2 ft) corresponding to the 325N Zone. The 1050W Cross-cut confirmed the gold mineralization.
Sample assay results from the expected eastward extension of the 400N Zone have not been received yet.
An unexpected gold zone was intersected in 1050W which may be the westward extension of the 100N Zone. The average of 3 panels on the west wall and 6 panels on the east wall was 0.17 oz/t for an average width of 4.5 ft. There is no significant drill intersection corresponding to this location.
00W Cross-Cut
One of the objectives of the 00W Cross-cut was to collect larger samples than is possible from drill holes through a section of strongly carbonate altered volcanics. The 00W Cross-cut follows the 1997 Drill Hole 22-61 which intersected several gold zones including 0.14 oz/t over 8.0 ft in the 175N Zone - this drill intersection was the only intercept in Drill Hole 22-61 used in the 43-101 resource estimate.
There are 15 panel samples in the 175N area, 8 of which are 0.10 oz/t or better (the best being 0.28 oz/t).
Of 10 panel samples in the 100N area, 3 are 0.10 oz/t or better (the best being 0.32 oz/t). The corresponding result in Drill Hole 22-61 was 0.22 oz/t over 3.7 ft.
Of 15 panel samples in the 185N area, 3 are 0.10 oz/t or better (the best being 0.24 oz/t). There was no significant assay corresponding in Drill Hole 22-61.
There are several other anomalous panel samples which will warrant further follow up. These include 5 panel samples at about 260N of which 2 are 0.10 oz/t or better (the best being 0.19 oz/t); and 9 panel samples on the west wall only at about 300N of which 3 are 0.10 oz/t or better (the best being 0.24 oz/t).
A diamond drill station will be established in the 00W Cross-cut to permit detailed drill testing of the potential multiple zones. The 175N Zone will be included in the current bulk sampling program.
Bulk Sampling Zones
Following a major upgrade to the ventilation system, we are now concentrating on providing a bulk sample of the target gold zones from the 2 cross-cuts on the 2250 Level. A turnoff to the 260N Zone from the 1050W Cross-cut is established. A turnoff to the 325N Zone and the establishment of a number of holding bays (re-mucks) to enable round-by-round handling of bulk sample material will be completed shortly.
The crusher/continuous sampler/conveyor facility on surface is in the final stages of commissioning with the first material expected through during the second week of April. Each 50 ton round of bulk sampling will be crushed and passed over the sampler to extract a 1% sample (one-half ton). The sample will be sent to PolyMet Laboratories in Cobalt, Ontario where the entire sample will be ground in a ball mill. A blending machine will take 4 splits for assay and future reference.
The remainder of the bulk sample material will be stockpiled at site until a sufficient tonnage is available for trucking to a local milling operation for confirmation of milling characteristics and comparison to the 1% sample results.
The detailed bulk sampling on a round-by-round basis will permit the evaluation of the continuity of mineralization within zones and a realistic evaluation of an optimal diamond drill pattern. The bulk sampling along the zones will also provide key information to be used in designing an appropriate mining method and mine development strategy.
QA/QC
Samples are sent for standard fire assay with AA finish to PolyMet Laboratories at Cobalt, Ontario and Swastika Laboratories at Swastika, Ontario. In addition to the blanks and repeats performed by the laboratories, blanks and repeats are submitted by Armistice for every 20 samples.
The NI 43-101 Report of June 2004 can be downloaded via the Sedar link on Armistice's Web Site (filed under "Other" June 17, 2004 (7.37 Mb) on the Sedar site).
The work reported on in this press release is supervised by Erik Andersen, P.Eng., Vice President and COO of Armistice and Qualified Person. Mr. Andersen has reviewed and approved this release.
ARMISTICE RESOURCES CORP.
"Todd J. Morgan"
Todd J. Morgan
President, CEO and Chairman of the Board