- 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 325N Zone.
- 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.
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]