Armistice Resources: New Assay Results Provide Further Evidence of Extensive Gold-Bearing Systems on Kerr-Addison Property

  • Releases assay results of a further 46 holes drilled on its Kerr-Addison property, bringing the total reported to 68 holes
  • Mill Zone continues to be extended by drill program which intersected multiple gold zones
  • Assay results highlights include:
    DDH KA-12-29  0.90 oz/t (30.9 g/t) gold over 8.4 ft
    DDH GG-11-03  0.59 oz/t  (20.2 g/t) gold over 4.9 ft
    DDH VT-11-05  0.26 oz/t  (8.9 g/t) gold over 10.0 ft
            including 1.12 oz/t  (38.4 g/t) gold over 2.0 ft
    DDH VT-11-06  0.74 oz/t  (5.0 g/t) gold over 5.0 ft
  • Now planning follow-up phases of drilling
  • Company also reports that surface drilling on the McGarry Mine property confirmed narrow gold zones in four of the holes

TORONTO, July 9, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is carrying out mining at its McGarry gold mine in Ontario's Kirkland Lake area, today announced that additional findings of its surface diamond-drilling program on the adjacent Kerr-Addison Mine property provide further evidence of an extensive gold-bearing system in the Mill Zone.

"We are excited by the results of the drilling program that we have so far completed in the Mill Zone and elsewhere on the Kerr-Addison property," said Todd J. Morgan, President and Chief Executive Officer. "The results to date are confirming our expectations that the Kerr-Addison property has great potential for future gold mining.

"We will now begin planning follow-up phases of drilling. In combination with the available historical data, we expect to use these results in a preliminary economic assessment toward planning possible future mining operations for the Kerr-Addison property," he said.

In total, Armistice today released assay results from 46 holes drilled on its Kerr-Addison property, bringing the total reported to date to 68 holes, as well as for 15 holes completed on the McGarry Mine property. This is the fourth set of very encouraging assay results that Armistice has released from the drilling program on the Kerr-Addison property.

The Kerr-Addison property adjoins Armistice's McGarry Mine property to the east. The Kerr-Addison Mine produced approximately 11 million ounces of gold during a 58-year operating life from 1938 to 1996. Despite the outstanding success of the Kerr-Addison Mine, most of the 2,000 acres of the property, including four miles of strike length along the Larder Lake-Cadillac Break, was virtually unexplored. Specifically, the Mill Zone, which lies about 700 feet southeast from the Kerr-Addison Mine, was not mined or systematically drill tested over its interpreted strike length.

Kerr-Addison Mine Property

Mill Zone

Armistice previously reported, on June 22, September 7, and December 8, 2011 that the results of an initial 22 holes drilled on the Kerr-Addison Mill Zone area showed extensive gold mineralization in multiple locations in most holes. Locations of the drill holes are shown on the attached map.

The assay data now interpreted for an additional 11 holes (assay results are still awaited for two holes) provides further evidence that there is an extensive gold-bearing system away from the previous mine workings on the Kerr-Addison property, extending from the surface to at least 1,400 feet. The 35 holes drilled in the Mill Zone to date represent the first phases of testing of this area.

Assay Highlights from the current release of Kerr Mill Zone Surface Drill Data
(See attached table for full table of assay results and notes)

        DDH KA-12-29           0.90 oz/t  (30.9 g/t) gold over   8.4 ft

Green Giant Zone

Armistice is reporting the assay results of 14 holes drilled in the Green Giant Zone. The Green Giant Zone is located a few hundred feet north of the former Kerr-Addison Mine workings and was first identified in the 1990s. Less than optimal diamond drill set ups had to be used to test the Green Giant Zone because of the location within a built-up area of North Virginiatown. Initial assay results as reported here confirm high-grade gold values in the Green Giant Zone. All the holes in the current program reached the targeted hangingwall favorable carbonate lithology. Four holes encountered one to three gold zones with intersection lengths up to 19 feet. The holes have verified the new hangingwall Green Giant Zone. Follow up drilling will require set ups within the built up area of the town.

Assay Highlights from the current release of Green Giant Zone Surface Drill Data
(See attached table for full table of assay results and notes)

        DDH GG-11-03           0.59 oz/t  (20.2 g/t) gold over   4.9 ft

East Chesterville

The East Chesterville holes were drilled in an area east of the previous Chesterville Mine area (incorporated into the Kerr-Addison property in the 1950s). Historical drilling in the area appears to have been very limited with low-grade gold mineralization in two holes. Eight of the ten holes drilled by Armistice encountered one to four gold enriched zones up to 20 feet in width within 700 feet of surface. Although the gold zones encountered are low grade, it is encouraging that both the green carbonate and "flow ore" geological environments were intersected. Additional drill testing to the east is warranted.

VT Zone

The VT holes were drilled near the southwest end of the town of Virginiatown in an area of known low-grade, near-surface gold mineralization discovered in the 1940s. This mineralization is under a carbonate ridge that is on the general trend of the Kerr-Addison Mill Zone. All 11 of the VT holes drilled in 2012 encountered the green carbonate alteration lithology, which is an excellent indicator of possible gold enrichment. These holes extended the green carbonate zone approximately 800 feet further west and to about 700 feet below surface. The results also add encouragement that there is continuous gold enrichment extending about 1.5 miles between the Kerr-Addison and the Armistice Mill Zones.

Assay Highlights from the current release of the VT Zone Surface Drill Data
(See attached table for full table of assay results and notes)

        DDH VT-11-05           0.26 oz/t  (8.9 g/t) gold over 10.0 ft     
                including         1.12 oz/t  (38.4 g/t) gold over   2.0 ft
        DDH VT-11-06           0.74 oz/t  (5.0 g/t) gold over   5.0 ft

The McGarry Mine Property

Armistice completed a program of surface drilling at the McGarry Mine property in 2011 in the area near the shaft location. This work followed up a surface-drilling program reported on April 28, 2010. Local terrain has made the location of drill collar sites less than ideal. The objective of this program was to continue the upward exploration of the potential for the extension of the gold mineralization identified below the mine's 1250 Level.

Results from the 15 holes completed in the current program confirmed narrow gold zones in four of the holes. Before this program of surface drilling at McGarry is continued, Armistice will complete a full review of all the near-surface results. Locations of the drill holes are shown on the attached map.

Assay Highlights from the current release of McGarry Surface Drill Data
(See attached table for full table of assay results and notes)

        DDH AR-11-05           0.25 oz/t  (8.6 g/t) gold over    2.8 ft

Quality Control and Quality Assurance Process

Armistice maintains procedures for Quality Control and Quality Assurance. These procedures include sawing the core in half and retaining half for archive reference. The other half is assayed using standard fire assay techniques with AA finish. For every 20 samples submitted for assay, one sample is quarter sawn and each quarter is submitted to separate labs for independent analysis. All samples assaying over 0.10 oz/t are re-assayed and average is used. For each 20 samples submitted, one blank is also submitted for control. All samples are sent to PolyMet Labs, Cobalt, Ontario, and Swastika Labs, Swastika, Ontario, both being recognized independent assay laboratories.

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, began hoisting and stockpiling operations in December 2011 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 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.

Forward-Looking Statements

This news release may contain forward-looking statements, including current expectations regarding exploration programs as well as on the timing of the commencement of production, the rate of production, and plans for gold sales 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; 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.

Target Area   Drill Hole   Azimuth
(deg.)
  Dip at
Collar
(deg.)
  Length
of Hole
(feet)
      From
(feet)
  To
(feet)
  Interval
(feet)
  Grade
(oz/t)
  Grade
(g/t)  
                                           
Kerr Mill Zone   KA-11-01 to
KA-11-22
  Previously Reported - December 8, 2011          
    KA-11-23   290   -48   1500       No Significant Assays        
    KA-11-24   291   -58   1549       No Significant Assays        
    KA-11-25   290   -46   180       No Significant Assays - hole abandoned before reaching target
    KA-11-25A   291   -50   1280       98.0   106.0   8.0   0.20         6.9  
                        240.0   250.0   10.0   0.08   2.7  
                    Incl.   246.0   248.0   2.0   0.15   5.1  
                        951.0   955.0   4.0   0.13   4.5  
                        1027.0   1032.0   5.0   0.09   3.1  
    KA-12-26   279   -54   1890       101.0   111.0   10.0   0.07   2.4  
                    Incl.   106.0   108.0   2.0   0.15   5.1  
                        1854.0   1858.0   4.0   0.09   3.1  
    KA-12-27   288   -64   1611       131.0   135.0   4.0   0.10   3.4  
    KA-12-28   282   -42   1580       199.1   201.5   2.4   0.10   3.4  
    KA-12-29   282   -57   2336       232.0   236.3   4.3   0.08   2.7  
                        272.0   282.2   10.2   0.06   2.1  
                        302.0   304.0   2.0   0.14   4.8  
                        1846.9   1855.3   8.4   0.90   30.9  
    KA-12-30   283   -65   1630       357.7   369.1   11.4   0.08        2.7  
                    Incl.   362.5   365.2   2.7   0.13        4.5  
    KA-12-31   281   -45   1798       433.3   435.5   2.2   0.09         3.1  
                        978.6   982.0   3.4   0.09         3.1  
    KA-12-32   281   -56   2580       740.0   743.8   3.8   0.10         3.4  
                        754.3   759.6   5.3   0.10         3.4  
                        1044.5   1055.0   10.5   0.07        2.4  
                        1116.0   1130.0   14.0   0.09        3.1  
                        1884.7   1887.4   2.7   0.11        3.8  
    KA-12-33   267   -78   1470       Awaiting assay results        
    KA-12-34   107   -79   1510       Awaiting assay results        
                                           
East Chesterville   EC-11-01   289   -46   922       150.0   162.5   12.5   0.09        3.1  
                        216.0   220.0   3.1   0.11        3.8  
    EC-11-02   286   -60   940       63.5   65.5   2.0   0.14        4.8  
                        144.8   148.5   3.7   0.10        3.4  
                        592.0   608.4   16.4   0.08        2.7  
    EC-11-03   286   -70   1771       93.9   102.0   8.1   0.08        2.7  
                        160.0   165.0   5.0   0.08        2.7  
                        199.6   217.5   17.9   0.08        2.7  
    EC-11-04   287   -63   1300       No Significant Assays        
    EC-11-05   299   -45   650       27.0   40.0   13.0   0.09        3.1  
    EC-11-06   299   -55   789       36.7   57.5   20.8   0.07        2.4  
                        100.0   109.3   9.3   0.07        2.4  
    EC-11-07   296   -65   1450       No Significant Assays        
    EC-11-08   154   -46   1012       340.0   341.6   1.6   0.10         3.4  
                        348.9   350.6   1.7   0.13        4.5  
                        380.0   381.2   1.2   0.17        5.8  
                        386.3   388.0   1.7   0.16         5.5  
    EC-11-09   154   -53   1220       193.0   198.0   5.0   0.15        5.1  
    EC-11-10   152   -65   1330       15.4   20.0   4.6   0.14        4.8  
                                           
Green Giant   GG-11-01   73   -48   1423       1168.0   1171.3   3.3   0.07        2.4  
    GG-11-02   89   -46   1080       654.9   658.5   3.6   0.26         8.9  
    GG-11-03   88   -60   1180       1148.8   1153.7   4.9   0.59      20.2  
                        1177.8   1178.4   0.6   0.16         5.5  
    GG-11-04   88   -70   1391       No Significant Assays        
    GG-11-05   177   -57   1620       No Significant Assays - only partial assay data available
    GG-11-06   144   -50   652       456.0   460.0   4.0   0.18        6.2  
                        476.3   478.2   1.9   0.25        8.6  
    GG-11-07   147   -59   722       719.0   721.7   2.7   0.20        6.9  
    GG-11-08   144   -70   940       No Significant Assays        
    GG-11-09   123   -50   618       512.0   514.0   2.0   0.21         7.2  
    GG-11-10   124   -58   746       No Significant Assays        
    GG-11-11   117   -69   835       No Significant Assays        
    GG-11-12   108   -50   740       No Significant Assays        
    GG-11-13   107   -61   940       707.0   711.0   4.0   0.17         5.8  
    GG-11-14   106   -70   1057       No Significant Assays        
                                           
Vtown   VT-11-01   280   -46   869       No Significant Assays        
    VT-11-02   281   -55   1430       No Significant Assays        
    VT-11-03   283   -48   1047       444.0   454.0   10.0   0.09         3.1  
                    Incl.   444.0   446.2   2.2   0.22        7.5  
    VT-11-04   283   -60   653       No Significant Assays        
    VT-11-05   281   -59   1312       835.0   845.0   10.0   0.26        8.9  
                    Incl.   835.0   837.0   2.0   1.12      38.4  
    VT-11-06   328   -48   1243       421.0   426.0   5.0   0.74       25.4  
    VT-11-07   331   -66   161       Abandoned before reaching target  
    VT-11-08   328   -50   1106       No Significant Assays        
    VT-11-09   328   -64   929       No Significant Assays        
    VT-11-10   384   -51   1480       No Significant Assays        
    VT-11-11   96   -61   948       No Significant Assays        
                                           
McGarry Surface   AR-11-01   92   -48   1374       No Significant Assays        
    AR-11-02   78   -54   1382       448.1   452.8   4.7   0.06        2.1  
                    Incl.   448.1   448.8   0.7   0.12         4.1  
    AR-11-03   99   -49   149       No Significant Assays        
    AR-11-04   64   -43   1303       No Significant Assays        
    AR-11-05   66   -55   1322       372.2   375.0   2.8   0.25        8.6  
    AR-11-06   65   -65   1024       No Significant Assays        
    AR-11-07   98   -43   899       No Significant Assays        
    AR-11-08   64   -58   1114       No Significant Assays        
    AR-11-09   308   -59   632       612.0   613.5   1.5   0.21         7.2  
    AR-11-10   306   -70   263       No Significant Assays - hole abandoned before reaching target
    AR-11-10A   306   -70   1376       No Significant Assays        
    AR-11-11   348   -50   711       No Significant Assays        
    AR-11-12   322   -48   1001       No Significant Assays        
    AR-11-13   323   -60   981       No Significant Assays        
    AR-11-14   321   -71   1024       No Significant Assays        
    AR-11-15   296   -51   997       801.2   803.2   2.0   0.09         3.1  
    AR-11-16   300   -61   1262       No Significant Assays        

Note:     Azimuths for AR Series Holes are relative to McGarry mine grid - add 25 degrees for true bearings.
      Azimuths for KA, EC, GG and VT Series Holes are relative to True North (Kerr Mine Grid).
      1 oz/t = 34.286 g/t oz/t = Troy ounces per short ton (2000 pounds)
        g/t  =  grams per metric ton (tonne)
      All reported intersections are measured along the drill core length. There is insufficient data to interpret true widths of the gold zones encountered.

  

PDF available at: http://stream1.newswire.ca/media/2012/07/09/20120709_C6956_DOC_EN_16113.pdf

SOURCE Armistice Resources Corp.

For further information:

President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: info@armistice.ca
(705) 567-4567

Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: wertheim@wertheim.ca
416-594-1600
416-518-8479 (cell)

Profil de l'entreprise

Armistice Resources Corp.

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