Operations proceeding well at the McGarry Mine with regular trucking to
the mill for processing;
Start-up work of mill completed and processing commenced on May 2;
Surface drilling on Kerr-Addison property has been temporarily paused
pending completion of extensive analysis of previously completed
drill-hole samples, which will enable planning for resumption of the
exploration work in 2012
TORONTO, June 11, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ),
which is carrying out mining operations at its McGarry gold mine in
Ontario's Kirkland Lake area, today provided an update on its progress
toward becoming Canada's newest gold producer.
"Mining and hoisting operations at the McGarry gold mine are proceeding
well and, throughout May, we have been trucking to the mill," said Todd
J. Morgan, President and Chief Executive Officer.
On March 6, 2012, Armistice announced that it had signed a custom
milling contract with SMC (Canada) Limited for processing at its
McAlpine Mill in Cobalt, Ontario. The contract covers processing of the
first 30,000 tons to be delivered from the McGarry gold mine.
"Haulage to the mill began on April 16 with an initial 3,000 tons
shipped that month to the mill. In May, we shipped more than 5,000 more
tons, and the total now is approaching 10,000 tons.
"As the mill had not been in operation prior to Armistice becoming its
sole customer, there was a start up period required. Milling commenced
on May 2 and has continued smoothly since then. Our current plan is to
begin gold sales in June or July. At that time, we will record our
first operating revenue and cash flow," said Mr. Morgan.
The bulk of the shipments to the mill have been lower grade material
from historical underground work as well as recent development work.
Shipping has now begun on higher-grade material from the stopes
currently being worked. The pre-production material being shipped and
processed is providing valuable information to establish cut-off grades
and metallurgical parameters on a production scale not previously
possible. This processing is very important in order to obtain this
information even though the overall average grade of the first few
months of processing will be significantly lower than production grade.
Other Operating Highlights
Following are some additional operating highlights of the progress at
the McGarry Mine.
Three stoping areas are in development in the 325W and 260W areas on the
2250 Level. Sill drifting is partially complete and raising to provide
access for one or two lifts is in progress. The drilling of uppers to
take down backs is in progress.
The 325N ramp on the 2250 Level is being driven to provide access to the
400N Zone, which is the next zone targeted for production after the
The Alimak escapeway raise from 2250 to the 2050 level is complete and
the unit is now set up on the 2050 Level to continue the system to the
1650 Level. A final stage from the 1650 to 1250 level will be required
when the current stage is complete.
Ladders have been installed in an existing raise from the 1250 Level to
surface which now provides both ventilation and an escapeway from the
upper half of the mine.
The hoisting system is now ready for double skipping pending the
completion of the grizzly expansion on the 2250 Level, which is
expected to be complete in early July. An additional scooptram is
expected to be delivered in June which, in combination with the grizzly
expansion, will effectively double the hoisting capacity and reduce the
double handling of ore and waste underground.
The company has temporarily paused exploration drilling on the
Kerr-Addison property pending completion of the analysis of drilling
that has been completed to date. This analysis is needed, in part, to
determine where further drilling should take place in 2012 when the
exploration program resumes. The company is preparing a report on the
drilling that has been done and expects to complete it and release
further results in June.
At the end of April, Armistice had 72 employees, with 70 of those being
located at the mining site.
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
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 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 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; 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:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.