Armistice Resources Reports "Very Encouraging" Gold Assay Results from Surface Drilling Program on Kerr-Addison Property

  • Drilling intersected multiple gold zones, including one very high-grade
  • Drilling opened up the area from the former Kerr-Addison mine workings to the Mill Zone for the delineation of economic gold zones
  • Assay results highlights include:
DDH KA-11-11   0.38 oz/t  (  13.1 g/t) gold over 3.0 ft
DDH KA-11-12   0.80 oz/t  (  27.5 g/t) gold over 10.4 ft
  including 6.05 oz/t  (207.4 g/t) gold over 1.3 ft
DDH KA-11-14   0.10 oz/t  (    3.3 g/t) gold over 10.4 ft
  including 0.43 oz/t  (  14.9 g/t) gold over 1.4 ft
    0.18 oz/t  (    6.1 g/t) gold over 5.3 ft
  • Today's report of assay results from eight holes brings the total disclosed to 15 holes drilled on the Kerr-Addison property; company has completed another seven holes, bringing the total to 22 holes and 29,960 feet

TORONTO, Sept. 7, 2011 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is on target to begin production in the 2011 fourth quarter from its McGarry gold mine in the Kirkland Lake area of northeastern Ontario, today released a second tranche of very encouraging gold assay results for the company's ongoing $2.5 million surface diamond drilling exploration program on its Kerr-Addison and McGarry properties.

Kerr-Addison Mine Property

"This is the second set of very encouraging assay results that we have released from the drilling program ongoing on the Kerr-Addison's Mill Zone area.  The additional eight holes drilled intersected multiple gold zones, including one very high-grade.  The drilling opened up the area from the former Kerr-Addison mine workings all the way to the Mill Zone (see attached figure) for the delineation of economic gold zones," said Todd J. Morgan, President and Chief Executive Officer.

Armistice previously reported, on June 22, 2011, that the results of an initial seven holes drilled on the Kerr Mill Zone area, which lies about 700 feet southeast of the mining area of the former Kerr-Addison gold mine, showed extensive gold mineralization in multiple locations in most holes.

"Now, with the assay data of 15 holes drilled in this area, we have further support for our interpretation that there is an extensive gold-bearing system away from the previous workings on the Kerr-Addison property, extending from the surface to at least 1,400 feet.  The Mill Zone was not mined by the previous operators and it has not been systematically drill tested over its interpreted strike length," Mr. Morgan said.

"At this early stage of the extensive drilling program that we initiated earlier this year, we are very pleased with the results that we have seen, but we know that we will need more assay results before we can confidently determine what might be the potential for our Kerr-Addison property," Mr. Morgan said.

"The new results include one very high-grade gold intersection made in DDH KA-11-12 (6.0 oz/t over 1.3 feet - average of four assay determinations)," said Erik Andersen, P.Eng., Vice-President and Chief Operating Officer.

"Such high-grade intersections are common in a review of the historical data from the former mine workings. The intersection in itself is considered very encouraging in that it demonstrates that pockets of very high-grade gold do occur in the Mill Zone area consistent with our understanding of the gold distribution in the 'green carbonate ore' of the Kerr-Addison Main Zone. This high assay should not be considered to represent a large tonnage of this average grade. Rather, it indicates that high-grade 'sweeteners' exist within a lower-grade mineralization shell, as was the case at the Kerr-Addison.

"It should be noted," Mr. Andersen added, "that DDH KA-11-10, which did not return any significant assay intersections, was drilled to the southeast away from all the other holes. The purpose of this hole was to test for the possibility that there are additional significant gold zones in areas we are not expecting to find them.  From time to time, we will have holes drilled to ensure that areas that do not appear to have potential are not being misinterpreted.

"In addition to the 15 holes on the Kerr-Addison property for which we are today reporting results, we have completed drilling for another seven holes, altogether amounting to a total 22 holes and 29,960 feet.  We will report the assay results of the remaining seven holes from this first phase of our exploration program when the analysis has been completed," Mr. Andersen continued.

"When we have received all the assay results for the Mill Zone drilling and the geological interpretation of the results from this drilling is available, we will plan a second phase of drilling in the Mill Zone.  With the completion of this first phase, we have moved the drill rig to test the Green Giant Zone, which is located about 700 feet north of the main mining area of the former Kerr-Addison Mine," Mr. Andersen said.

Assay Highlights from the Kerr-Addison Mill Zone

(See attached table for full table of assay results)

DDH KA-11-08     0.14 oz/t gold (4.8 g/t gold) over 5.3 ft
  including    0.35 oz/t gold (12.1 g/t gold) over 1.3 ft
DDH KA-11-11     0.38 oz/t gold (13.1 g/t gold) over 3.0 ft
DDH KA-11-12     0.80 oz/t gold (27.5 g/t gold) over 10.4 ft
  including 6.05 oz/t gold (207.4 g/t gold) over 1.3 ft
DDH KA-11-14     0.10 oz/t gold (3.3 g/t gold) over 10.4 ft
  including 0.43 oz/t gold (14.9 g/t gold) over 1.4 ft
    0.18 oz/t gold (6.1 g/t gold) over 5.3 ft
DDH KA-11-16     0.10 oz/t gold (3.6 g/t gold) over 7.9 ft
  including 0.16 oz/t gold (5.3 g/t gold) over 4.5 ft
    0.15 oz/t gold (5.1 g/t gold) over 4.9 ft
    0.15 oz/t gold (5.0 g/t gold) over 4.2 ft
    0.10 oz/t gold (3.1 g/t gold) over12.9 ft
  including 0.17 oz/t gold (5.7 g/t gold) over 3.4 ft

All the assay intervals reported are dill core intervals. True widths have not been estimated since the final interpreted geometry of the gold zones is yet to be determined.

Armistice also reported that while it now has completed the drilling of 10 holes on its McGarry Mine property it only has the assay results for two of them.  The company said that it will release results from its drilling program on the McGarry Mine property when it has sufficient data to provide useful information for investors.

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, expects to begin production in the 2011 fourth quarter 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 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.

Forward-Looking Statements

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.

Intervals and Assays in Imperial Units        
  DDH Hole
Dip At
Collar
  From To Interval Assay Assay
        (feet) (feet) (feet) (oz/t) (g/t)
Kerr Addison Mill Zone            
  KA-11-08 -42°   161.2 166.0 4.8 0.071 2.43
        181.5 186.4 4.9 0.132 4.53
        195.6 198.5 2.9 0.162 5.55
        222.0 223.0 1.0 0.228 7.82
        660.0 665.3 5.3 0.141 4.83
      incl. 663.0 664.3 1.3 0.352 12.07
        1096.3 1098.4 2.1 0.115 3.94
                 
  KA-11-09 -60°   1310.3 1314.8 4.5 0.084 2.88
                 
  KA-11-10 -59°   no significant assays    
                 
  KA-11-11 -44°   198.9 201.9 3.0 0.383 13.13
        652.7 656.2 3.5 0.096 3.29
                 
  KA-11-12 -59°   596.0 598.0 2.0 0.242 8.30
        1055.6 1066.0 10.4 0.801 27.46
      incl. 1060.0 1061.3 1.3 6.050 207.43*
        1208.0 1214.0 5.9 0.062 2.13
                 
  KA-11-13 -66°   assay results not yet available    
                 
  KA-11-14 -44°   300.0 310.4 10.4 0.096 3.29
      incl. 308.7 310.1 1.4 0.434 14.88
        346.0 351.3 5.3 0.179 6.14
        702.0 704.2 2.2 0.101 3.46
                 
  KA-11-15 -59°   no significant assays    
                 
  KA-11-16 -43°   304.0 311.9 7.9 0.104 3.57
      incl. 307.4 311.9 4.5 0.156 5.35
        326.2 331.1 4.9 0.149 5.11
        345.7 349.9 4.2 0.146 5.01
        902.6 908.2 5.6 0.102 3.50
        1047.0 1051.5 4.5 0.080 2.74
        1102.2 1103.5 1.3 0.117 4.01
        1140.2 1153.1 12.9 0.091 3.12
      incl. 1149.7 1153.1 3.4 0.167 5.73
                 
1 Troy oz/short ton = 34.286 gram/metric ton      

SOURCE Armistice Resources Corp.

For further information:

Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: wertheim@wertheim.ca
416-594-1600 ext. 223
416-518-8479 (cell)

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Armistice Resources Corp.

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