Armistice Resources Drills Significant Gold Zone on Kerr-Addison Property with High-Grade Gold Intersections

  • Initial assay results received confirm interpretation of an extensive gold-bearing system away from the previous workings on the Kerr-Addison property
  • Assay result highlights include:
                DDH KA-11-04           0.28 oz/t gold over 11.1 ft
                  including     0.55 oz/t gold over 4.0 ft
                DDH KA-11-05           0.12 oz/t gold over 22.7 ft
                  including     0.23 oz/t gold over 6.0 ft
                              0.46 oz/t gold over 5.0 ft
  • Exploration program also underway on McGarry Mine property with addition of a second surface drilling rig
  • Company making steady progress toward meeting its target of gold production from McGarry Mine starting in 2011 fourth quarter

 

TORONTO, June 22, 2011 /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 announced that the first gold assay results from its ongoing diamond drilling exploration program on its Kerr-Addison property show extensive gold mineralization in multiple locations in most holes.

"These initial assay results confirm the interpretation of the presence of an extensive gold-bearing system away from the previous workings on the Kerr-Addison property, and extending from surface to at least 1,400 feet.  We will need to do much more work before we can reliably determine the full scope of this gold system," reported Todd J. Morgan, President and Chief Executive Officer.

"These results are from the first seven holes drilled to test the Kerr Mill Zone, which lies about 700 feet southeast of the mining area of the former Kerr-Addison gold mine (see attached Figure)," said Erik Andersen, P.Eng., Vice-President and Chief Operating Officer.

"The Mill Zone was not mined by the previous operators and it has not been systematically drill tested over its interpreted strike length.  The holes being reported today represent 8,677 feet of drilling.  We are still waiting for some assets results from fill-in sampling and only partial results are available for KA-11-07.  The analysis of the first holes that we had drilled by the end of April took somewhat longer than we had anticipated.  We experienced delays in receiving assay results from the external laboratories as they are very busy due to the current high level of mining activity," Mr. Andersen said.

The Kerr-Addison Gold Mine property, which historically produced more than 11 million ounces of gold, lies adjacent to Armistice's McGarry Mine project.  On December 23, 2010, Armistice announced that it had signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property.

"With respect to our McGarry Mine, since our previous update report that we issued May 17, 2011," Mr. Morgan said, "we have continued to make steady progress on our preparations and remain on schedule to begin gold production in the 2011 fourth quarter."

Drilling Program

The holes reported on are from only two drill sections about 100 feet apart at their collars and oriented at about 45° to each other. Holes KA-11-1 to 3 were drilled to the southeast of the main part of the Kerr Mill Zone. Holes KA-11-4 to 7 were better oriented to test the zone. True width estimates and hole-to-hole correlations will not be interpreted until more data becomes available from the ongoing drilling program.

As previously announced, Armistice is undertaking a $2.5 million surface diamond drilling program on its Kerr-Addison and McGarry properties.  By the end of May, the company had completed drilling 10 holes for a total of 12,685 feet; the drill testing the Kerr Mill Zone is currently on hole 12. The company expects that testing of the Kerr Mill Zone will continue for some time before moving to another target area on the Kerr-Addison property. The objective is to drill test a number of priority areas sufficiently to set longer-term priorities. It should also be noted that from the time a hole is collared until assay results are received normally takes at least four to six weeks.

Highlights of the assay results include:

          DDH KA-11-04                0.28 oz/t gold over 11.1 ft
                      including  0.55 oz/t gold over 4.0 ft
          DDH KA-11-05                0.12 oz/t gold over 22.7 ft
                      including   0.23 oz/t gold over 6.0 ft
                        0.46 oz/t gold over 5.0 ft

The company now has received and mobilized a second drill to continue the surface drilling program on the McGarry site that Armistice began in 2009.  Drilling on the first hole on the McGarry site is underway.

The McGarry surface program is testing the upward continuation of the gold zones defined below 1,250 feet, which are part of the current mining plan.  The area between 1,250 below surface and surface has not been well explored in the past and the 2009 campaign confirmed the potential right to surface.

Tabulation of Significant Kerr-Addison Drill Result Assays
                                     
Below is tabulation of the significant gold intersections received to date.
 
DDH     Hole
Dip
          From     To     Interval     Assay
      At
Collar
          (feet)     (feet)     (feet)     (ounces
gold per
ton)
                                     
KA-11-01     -60°           1,000.0     1,012.0     12.0     0.064
KA-11-02     -42°           302.6     308.7     6.1     0.153
                  550.0     552.4     2.4     0.171
                  559.4     560.8     1.4     0.165
                  743.6     745.6     2.0     0.078
                  1,200.8     1,205.1     4.3     0.073
                  1,563.4     1,565.0     1.6     0.183
KA-11-03     -68°           No significant assays
KA-11-04     -40°           478.6     489.7     11.1     0.281
            incl     478.6     482.6     4.0     0.548
                  697.0     702.1     5.1     0.076
                  812.5     816.6     4.1     0.106
                  838.0     839.9     1.9     0.189
KA-11-05     -46°           25.2     47.9     22.7     0.123
            incl     41.9     47.9     6.0     0.225
                  68.7     71.0     2.3     0.094
                  254.0     259.0     5.0     0.457
                  305.7     333.8     28.1     0.068
            incl     324.3     326.8     2.5     0.126
                  359.3     369.5     10.2     0.180
                  486.9     495.0     8.1     0.063
                  771.0     779.9     8.9     0.056
KA-11-06     -57°           31.1     35.0     3.9     0.120
                  449.5     452.4     2.9     0.088
                  657.1     668.0     10.9     0.115
                  671.7     672.4     0.7     0.135
                  757.8     817.3     59.5     0.043
            incl     767.8     773.9     6.1     0.134
            and     783.0     793.0     10.0     0.089
            and     816.3     817.3     1.0     0.247
                  1054.3     1055.6     1.3     0.107
                  1068.0     1069.6     1.6     0.102
KA-11-07     -68°           39.5     41.4     1.9     0.180

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

Progress Toward Production

Following are some of the highlights of the pre-production progress at the McGarry Mine made by Armistice during May.

  • Underground development moved ahead in a number of areas, including the 325 W Drift, which is the priority heading in the mine as it will provide the drilling base to outline stopes scheduled for early production.
  • Armistice completed both powder and cap magazines, outfitted them, and put them into service on 2250 Level.
  • The ordered underground diamond drill rig is expected to be delivered near the end of June.
  • The previously ordered refurbished Alimak Raise Climber also is expected to be delivered before the end of June.  Getting the Alimak Raise Climber in place is a top priority in the mine since it is required to provide a second escapeway to the surface that must be established prior to beginning mining production.
  • Hiring continued and the company expects to move to two operating shifts per day in early July.

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 a recognized independent assay laboratory.

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 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.

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.

 

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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