- Company reports a number of very high-grade gold intersections with visible gold common in drill core and on mine development faces
- Results of the drilling and stope definition activity exceeding management's expectations
- Highlights of stope definition drilling in the 325N Zone:
|Drill Hole||Interval||Grade - Uncut||Grade - Top Cut to 1.5 oz/t|
TORONTO, Jan. 25, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ), which is hoisting and stockpiling at its McGarry gold mine in Ontario's Kirkland Lake area, today announced the results of definition diamond drilling in the mine. The definition drilling is located in the 325N Gold Zone on the 2250 Level of the McGarry Mine.
"The results of the drilling and stope definition activity in our McGarry Mine are exceeding our expectations," said Todd J. Morgan, President and Chief Executive Officer. "We've recorded a number of very high-grade gold intersections with visible gold common in drill core and on mine faces. This is the area where Armistice will be carrying out our initial production operations in 2012."
"We expect that the cluster of gold zones in the western region of the 2250 Level, including the 325N, the 260N, and the 400N Zones will form the core of production mining in 2012," added Erik Andersen, P.Eng., Vice-President and Chief Operating Officer. "We expect that production from these areas will enable us to meet the gold production targets of 25,000 ounces that we have projected for 2012."
A program of stope definition drilling is ongoing in the 325N Gold Zone, which has been selected as the initial production area at McGarry. The 325N Zone was first identified from exploration-scale drilling during the 1990s on 100-foot centers from the main drift on the 2250 Level of the mine.
As outlined in the recently filed NI 43-101 compliant Technical Report dated September 30, 2011 (the Technical Report), the exploration scale-diamond drilling on 100-foot spaced sections is being followed up by stope definition drilling on nominal 25-foot-spaced sections. Initial detailed drilling of the 325 Zone in late 2008 and in late 2009 has previously been reported (January 5, 2009). The current drill program is much more extensive and provides the most detailed information for any prospective production area in the mine.
In addition to the drill results reported today, in December 2011, Armistice completed mining a cross-cut through the 325N ore zone about 30 feet below the main 2250 Level via ramp access. This cross-cut provides a unique opportunity to map geologically and to sample a significant future production area. The walls and back were washed and then mapped and sampled in two-foot by two-foot panels to ensure that the company fully understands the geology of the gold distribution pattern. Three ore headings were started off the cross-cut.
"The cross-cut and the detailed diamond drilling have returned results well in excess of those expected based on the initial exploration scale drilling. Gold grades are higher and potential stopes are both longer in strike extent and wider than expected. The initial interpretation for the area was for one stope at a minimum five-foot mining width. The current results indicate the presence of at least two sub-parallel stoping areas with the potential for a third stoping area and widths up to 10 feet or greater," said Mr. Andersen. (See Figures 1 and 2)
Two future stoping areas are currently being drifted on to test the continuity and grade. One or two lifts will then be taken to test the vertical continuity before a final extraction plan is completed.
The character of the 325N Gold Zone is complex within a package of carbonate altered mafic volcanics. Fine-grained visible gold is routinely recognized in drill core and in the mining faces. Visible gold is usually associated with quartz veinlets within a matrix of green carbonate and is sometimes associated with albitite dikes.
The 260N Zone is located just inside the north wall of the 260W Drift. When the diamond drilling from this location is complete, the company expects to drift along this zone to determine its nature from mined openings. The company expects that it will develop a production stope on the 260N Zone for near-term extraction.
The 325W Ramp is currently being extended towards the 400N Zone located about 100 feet west of the end of the current position of the ramp. The 400N Zone is one of the highest-grade zones included in the current resource estimate as reported in the Technical Report. It is expected that stoping areas within the 400N Zone will be able to be developed in the near term.
Conclusions from Drilling and Stope Definition in the McGarry Mine
"Based on the drilling and stope definition work done to date, it is clear to us that Armistice is well on our way to developing stoping areas that we expect will enable us to meet our projections for 2012 gold production," said Mr. Morgan.
"The current work in the 325N Zone," added Mr. Andersen, "has firmly demonstrated that reliance on drill results from holes spaced at 100-foot intervals to define stoping areas is not reasonable. As recommended in the Technical Report, drilling on approximately 25-foot centers will be required to define stoping areas. A further important conclusion is that drilling at the exploration scale cannot be relied upon to exclude a part of the geological package from detailed follow up drilling if other data suggests that a specific target area may be prospective for a gold zone."
Armistice's policy is not to publish the results of routine detailed drilling and sampling underground except when new material information is obtained.
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 the 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.
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 former 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. Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has 184,960,971 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.
McGarry Mine Drill Results - 325N Gold Zone on 2250 Level
|Uncut||Top Cut to 1.5 oz/t|
|Note:||Azimuths are relative to mine grid - add 25 degrees for true bearings|
PDF with caption: "Figure 1". PDF available at: http://stream1.newswire.ca/media/2012/01/25/20120125_C6631_DOC_EN_9186.pdf
PDF with caption: "Figure 2". PDF available at: http://stream1.newswire.ca/media/2012/01/25/20120125_C6631_DOC_EN_9185.pdf
For further information:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: [email protected]
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: [email protected]
416-594-1600 ext. 223