Pre-production operations ramping up as company remains on target to
start gold production in 2011 calendar fourth quarter
Initial focus is on upgrading all mine infrastructure to "production
Exploration drilling program continuing on adjacent Kerr-Addison
property with analysis of first results expected in late May or early
Planned operations on McGarry and exploration drilling on the
Kerr-Addison properties are fully funded
Preliminary analysis of the drill core from the first eight holes of the
Kerr Mill Zone drill program is consistent with expectations
TORONTO, May 17 /CNW/ - Armistice Resources Corp. (TSX: AZ), which
expects to begin gold production in the 2011 fourth quarter from its
McGarry Mine in the Kirkland Lake area of northeastern Ontario, today
provided a progress report on its pre-production operations at the
"We are very pleased with the progress of the extensive pre-production
operations that we are undertaking at the McGarry Mine. We remain on
track to achieve our target of starting gold production in this year's
fourth quarter," said Todd J. Morgan, President and Chief Executive
"Our pre-production development work is tracking well with our plan.
Once we have completed this, we will be in position to mine initially
at a rate of 350 tons per day, which after a year we expect to increase
to about 600 tons per day. This is what we are calling our Phase 1 of
the McGarry gold mining project and we expect it will run about 4.5
years, prior to proceeding with a second phase of development and
mining at the site," said Mr. Morgan
"With the ramping up of the pre-production and drilling program
underway, and the continuing hiring of additional mining and
exploration personnel, our McGarry and Kerr-Addison properties have
become a beehive of activity. Armistice's employment now exceeds 30
people and will continue to increase as we approach production
start-up. By year-end, we expect to have as many as 100 people working
for Armistice. Despite the level of mining activity in Canada, we have
attracted a core of highly skilled miners and tradesmen balanced with
excellent new recruits.
Following are some selected highlights of the pre-production progress
that we have made on the McGarry Mine site," Mr. Morgan reported.
Armistice commenced active underground work in late March. To date, the
company has focused on upgrading the McGarry Mine's infrastructure.
The first drill and blast activity took place in mid-April. Work has
included installing two new hoist ropes, engineering design work for an
improved ore loading facility on 2250 Level, and engineering design
work to move from single to double skipping of ore and waste.
The powder and cap magazines have been relocated from older workings to
the main 2250 Level that will provide more favorable environmental
conditions and easier access.
The company completed a review and design for the raise system that will
provide a second escapeway from the mine, which is required prior to
commencing production operations. It also will provide much improved
ventilation in the mine. Armistice located an Alimak Raise Climber
that is being refurbished at a significant saving over purchasing new.
The company will take delivery of the unit in June.
Armistice has on order an underground diamond drill rig that can drill
short holes (up to 400 feet) for ore outline definition. The company
will be ordering a second rig when the 2050 Level is ready for
Armistice has retained Golder Associates Ltd. to conduct a rock
mechanics assessment of the mine. The assessment will assist in
defining stoping parameters and ground support policy. No significant
issues are anticipated.
In May, Armistice initiated development drifting on the 2250 Level from
the 260N Zone off the 600W North drift. This development drifting is
part of the planned access and definition drilling drift on this level.
Following outlining by definition drilling, ore bodies will be accessed
for stoping from this drift and it will form part of the haulage
network on the level.
The company has erected a new, modern core shack on site. Office space
is being erected that will incorporate in-floor heating using waste
heat from the hoist room.
"We also are pleased with the progress being made on our announced $2.5
million surface diamond drilling program on the McGarry and
Kerr-Addison properties. The first holes are being drilled on the
Kerr-Addison property in the Kerr Mill Zone at the north end of the
Northeast Arm of Larder Lake, an area where we have identified gold
zones that we believe offer the potential for economic mining
activities in the future.
"By the end of April, we had completed drilling eight holes, totaling
8,700 feet. Preliminary analysis of the drill core from these first
eight holes is consistent with expectations, but it is premature to
make any definitive statements about the findings. We expect to
announce our analysis of this initial drilling in late May or early
June, depending on receipt of all assay results. It is Armistice's
policy to announce drill results in batches from time to time as is
appropriate for the particular stage of progress," he continued.
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.
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.
SOURCE Armistice Resources Corp.
For further information:
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
416-594-1600 ext. 223