Initial shipment of concentrate to a smelter marks company's first
generation of revenue and operating cash flow
Mine now approaching production of 200 tons of ore per day; targeting
ramp-up to rate of 350-400 tons per day by 2013
Initial concentrate production was from lower-grade ore mined during
pre-production phase; now extracting for shipment to the mill
About 3,500 tons of broken ore currently stockpiled for shipment to mill
Strong results from ongoing definition drilling in the McGarry Mine
Approximately three-quarters of the 80 definition holes drilled in the
current stoping areas encountered visible gold with many assays
returning more than one ounce per ton
Company now is continuing to improve operating efficiencies, positioning
Armistice for further growth in 2013, and focused on generating
revenues, positive operating cash flow, and earnings
TORONTO, Sept. 4, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ) today
announced that it has begun the shipment and sale of gold concentrate
from its McGarry gold mine in Ontario's Kirkland Lake area.
"The commencement of shipping and selling gold concentrate from our
first operating mine obviously is a significant and exciting milestone
in the development and growth of Armistice Resources," said Todd J.
Morgan, President and Chief Executive Officer. "The initial shipment of
35 tons of concentrate from the mill in Cobalt, Ontario to the smelter
also marks Armistice's first generation of revenue and operating cash
"Following formal acceptance of the initial shipment by the smelter, we
will be proceeding with regular shipments of concentrate for refining
and sale. We have an additional 135 tons of flotation concentrate and
24 tons of gravity concentrate ready to ship. We are approaching
production of 200 tons per day from the McGarry for shipment to the
mill in Cobalt and are working to increase this to an average of
350-to-400 tons per day by 2013. A surface and underground stockpile of
3,500 tons of broken ore is currently available for shipment to the
mill," Mr. Morgan continued.
"The material that we were sending to the mill, from which the first 200
tons of concentrates were produced, mainly consisted of pre-production,
lower-grade ore that had been earlier brought to the surface at the
McGarry Mine property. During the past few months, we have been
extracting and stockpiling higher-grade ore for milling particularly
from the 325N and 400N zones on the 2,250-foot level, as well as the
260N zone, about 100 feet south of the 325N zone."
"To maximize the extraction from these zones, we have driven a ramp down
to give an extra 30 feet of vertical mining extent from below the
2,250-foot level, which currently is the lowest level in the mine,"
reported Erik Andersen, Vice-President and Chief Operating Officer. "We
are developing two sub-parallel stoping zones from a series of three
access cross-cuts over a strike length of 300 feet. Two of the
cross-cuts are completed and a third is partially done, awaiting the
completion of diamond drilling from a station set up in the heading.
"We now have completed more than 80 definition drill holes over a strike
length of about 600 feet in the 260N, 325N, and 400N stoping areas on
the 2250 Level. We are quite pleased with what we are finding.
Approximately three-quarters of the holes drilled encountered visible
gold with many assays returning more than one ounce per ton. Using the
experience gained in the stoping areas of these three zones, we have
been able to prepare a short- and medium-term production plan that we
will apply as well to the known mineral resource down to the 2,450-foot
level, about 200 feet below the current shaft bottom, and up to the
1,250-foot elevation," Mr. Andersen continued.
All the active areas being mined and explored at the McGarry Mine and
reported in this news release are included in the mineral resources
covered by the NI 43-101 compliant report Preliminary Economic
Assessment and Mineral Resource Estimate, McGarry Project, McGarry
Township (Virginiatown), Ontario prepared by Martin Drennan, P.Eng.,
Python Mining Consultants Inc. dated 8 April 2009 and amended 30
"We are working on a complete evaluation of the results of the drilling
program carried out in 2011 and earlier this year on the Kerr-Addison
site, combining it with the available historical data," Mr. Andersen
said. "During 2011 and 2012, Armistice drilled 61 exploration holes
(76,800 feet). We have previously reported the results of this program,
including assays of 25 intersections of at least 0.2 ounces per ton
over more than two feet with eight of these being at least 0.5 ounces
per ton. We have determined that the area south of the former workings,
the Mill Zone, over a strike length of 3,000 feet warrants significant
follow-up. We will be using our evaluation work to plan the next phase
of our exploration drilling on the Kerr-Addison property, which we
likely will begin later this year."
"The course of starting up a mine is never entirely smooth or entirely
predictable," noted Mr. Morgan. "Our start-up has gone relatively well.
Overall, despite some relatively minor bumps and delays, we are pleased
with the progress that we have steadily been making in starting up
mining operations at the McGarry Mine and in getting the milling and
refining underway. We also are pleased with the exploration results
that we have reported on both the McGarry and Kerr-Addison properties
and with the team of some 70 people that we have recruited since March
2011 when there were just eight people at the McGarry site.
"It now is evident that we will not meet our target of producing 25,000
ounces in 2012," Mr. Morgan continued. "Of course, that's really only a
timing issue and that gold will be mined and sold as we continue to
move forward. Our focus is now on continuing to improve our operating
efficiencies, position Armistice for further growth in 2013, and on
generating revenues, positive operating cash flow, and earnings."
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, began in April 2012 shipping and milling ore from its McGarry
Mine. 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. Refining and sales of the gold concentrate resulting from the
milling began in August 2012.
The McGarry Mine is adjacent to the Kerr-Addison Gold Mine that 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
185,810,971 common shares issued and outstanding. To find out more
about Armistice Resources, please visit the company's website at www.armistice.ca.
This news release may contain forward-looking statements, including
current expectations regarding exploration programs as well as on the
timing of the commencement of commercial production, the rate of
production, and gold sales. 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; and
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. Investors 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.
SOURCE: Armistice Resources Corp.
For further information:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
416-594-1600 416-518-8479 (cell)